Annually Auditing Your Business Model
When you chose your business model, how much thought did you put into it? Did you compare your ideas with other local and national businesses? Did you assume that the traditional way was the only way, or did you consider models that were new and innovative? How far into the future did you project, and did you consider what your options would someday be for scaling up or branching out?
Many event professionals take a creative approach to their art, but an old-fashioned or outdated one towards their business model. Once you have some experience under your belt, you are likely to want to explore new horizons. If you’re considering new directions, it’s a good idea to annually audit the effectiveness and potential of your business model.
Room for Growth?
One of the first measures you should take is how much room you might have to expand, take on additional work, add employees or labor, or increase your revenue and profits. We chose a unique approach to wedding photography that not only provided the customary opportunities, but also allowed us to promote other seasoned and budding artists, reach more customers, and grow in a way that the standard model simply did not. The online format met the need of contemporary couples and allowed us to compete in an oversaturated market. We continue to create efficiency in our business by creating training materials to help us grow with quality and ease.
How well does your model meet the needs of your consumer as well as your own?
Evaluate Your Space
When we started our event business, we rented formalwear from brick-and-mortar locations. Over time we realized we wanted a more flexible and scalable business and found a way to leverage our experience and talents to transform into an only-online photography company. You need to use your annual audit to determine if the expenses and opportunities offered by your current locations are meeting your needs.
Review Your Sales
Of course, profits are of prime importance. Create a spreadsheet or use an accounting program that allows you to easily compare your income from year to year. Set projections and goals for the next year.
Evaluate Your Customer Service Results
Read through your reviews and customer satisfaction results from the year. If there are areas that stick out and need attention, make a plan to address them. Set goals for the next year’s performance as well. Trends in your client feedback suggest what changes need to be made. You can consider the value over time of implementing client requests like new packages or products and evaluate the success when you compare the numbers year to year.
A yearly audit will help you set and achieve goals. Share them with your staff and stakeholders to create excitement and a feeling of investment. Starting a new year with positivity is a great way to ensure your business’s success.
Keith Phillips is the Director of Business Development for Classic Photographers, a company that provides high quality wedding photography and videography services for the budget minded couple.