Business models can get complicated. The path to growth and profitability isn’t necessarily a straight line. It’s common to change the target market, product or service offering, pricing strategy, cost model and anything else in an effort to boost revenues and profits. With so many changes taking place it’s possible to lose sight of a basic question: how profitable is your business model? You many know how to run a business smoothly but it won’t help if you are in the wrong business. The way … [Read more...]

Pricing is one of the most challenging decisions that small business owners must make.  It determines revenues and profitability; it communicates value; and ultimately is responsible for the success or failure of a business. Setting a price becomes even more difficult when the company in question is selling something complex that includes both a product and service component. Software that requires upfront integration and ongoing maintenance is a typical example.  These complex sales if priced … [Read more...]