Personal Stories (and Insights) from my Clients Who Changed Their Business Models
Changing your business model, whether by choice or by new regulations, is a little scary. Sometimes we think it might be for the best; other times we’re worried about the outcome. Here are a few stories of my clients that will provide insights from those who have walked the path–either willingly or by necessity.
First, was one of my restaurant clients who had been successfully catering meals for large conventions and meetings; until pandemic restrictions. The owner, “Bob” struggled initially, trying to find his footing–only to find that the foundation seemed to be continually shifting. Initially, he found a few large corporate clients who brought lunch into their offices; then of course “work from home” became the norm–eliminating that profit flow.
Bob paired down his expenses, analyzed his costs, and shifted his marketing to include more social media and direct newsletter promotions. After most of last year, Bob has finally replaced his previous level of income from conventions with take-out meals directly to consumers. A bit more work–yes; but now he also knows that he is resilient and can weather the storms! He is now prepared that as “the sun comes out”–his catering side of the business will blossom as an additional profit center.
Another restaurant client, “Jim,” originally with indoor seating, was struggling to make a decent profit during his initial three years. Interestingly, as the restrictions came in place, and the indoor seating was closed, his take-out side of the business grew exponentially. He adopted a couple of the delivery apps (and yes, they are expensive); however, they gave him the cash flow and the exposure that his restaurant needed to grow.
He began analyzing his costs, looking at industry benchmarks, and took charge of his accounting system. During his fourth year, FY2020, he made a net profit to be very proud of, and is prepared to move forward with his slimmer, trimmer version of his restaurant as the restrictions loosen!
Another client, with a retail store, had also been providing specialized and direct design services to her customers. She was forced into closing her retail operations during the pandemic. As her business model shifted to provide her customers only her design services, she found that the retail operations had been costing her a lot in terms of attention and labor. By focusing only on the one income stream, she doubled her net profit last year! She is still pondering on whether to open the retail operations–it’s part of her love; however her numbers told her how much she was losing by keeping it open…interesting to see the story in black and white!
I, personally, have been shifting my business model, as well. Traditionally, I have provided lots of one-on-on consulting and support for my clients, building systems, trouble-shooting, clean-up, and other major projects, however, I found that there are only so many hours in the week. When economic conditions are difficult, my industry soars…business owners truly need to know their numbers, and in this area there are only a handful of accounting professionals who are experts in creating accurate systems for costing and inventory with QuickBooks software.
I really dislike turning people away–especially when I know that many of their difficulties are similar. Every business is unique, however, I knew that I could create online video courses to address many of their challenges. In the last year, I’ve created three programs that help my clients and I invite you to take a look… Accounting Made Simple for Busy Business Owners, QuickBooks in the Real World for Desktop Users, and QuickBooks in the Real World for Online Users. These three programs will minimize your anguish and maximize your time. You’ll know what your numbers are and how to use them to make decisions! I’m so exited that I launched a revenue stream that will provide the help owners need at an affordable price!
If you resonate with myself or one of the above clients, or you are thinking of changing your business model, I’d love to hear from you. Please Join our FB Group by clicking the button here>>>
Warmest regards for your continuing success,
Accounting Educator (and Rescuer)