This article was written by Hans Peter Bech and is read by an automated voice.
A company may begin a business model project with a straightforward goal: increase revenue.
In most cases, achieving that goal requires generating more qualified leads. The company must reach enough prospective customers who have a relevant problem, the means to buy and a reason to act. Improving sales conversion matters too, but a stronger sales process cannot compensate indefinitely for too few suitable opportunities.
The question soon becomes broader than "How do we get more leads?" The answer may involve the customers the company targets, the problems it addresses, its value proposition, market visibility, sales channels or partner capacity. The company must also consider what it costs to acquire and serve additional customers. Growth that weakens profitability may do little to improve the value of the business.
This is why revenue growth projects are difficult to plan in full at the outset. The team cannot yet know which changes it will recommend, which assumptions will survive testing or what resources implementation will require. Yet everyone still needs to know what the project is trying to achieve, who can make decisions and what work has been authorised.
In my forthcoming book, Building Successful Business Models, I use the Business Model Framework to help B2B software companies examine their existing business and identify improvements. I have also developed a separate project management tool: the Business Model Redesign Project Canvas. It keeps the project's governing arrangements current while the business analysis develops.
