Business Model Restructuring
Who is this for?
This is for you if you are looking to set up a new business or possibly restructure your existing business and you want to know more about how to review your business model for more success and ultimately greater profit.
What is a Business Model?
The term business model refers to a company's plan for how it will make a profit on what it sells. It involves the identification of the products or services that your business intends to sell, the target market for those products and services, the price you intend to sell at, and the associated expenses in doing so.
In other words, your business model reflects the totality of your business operating and financial structure.
Why are Business Models important in the Tourism & Hospitality sector?
Business models are important in any sector but the recent significant impact of COVID-19 on the Tourism & Hospitality sector has brought the topic to the fore as old norms of trading have been materially altered.
The pandemic has forced many business owners in the sector to review their business model and to adapt to the changed economic and social cicrumstances.
Examples include:
- Restaurants adapting to take away service
- Many outlets adding an e-commerce element to their website
- Online delivery of certain workshops, training or programmes
Business Model Restructuring
Business Model restructuring can come in different shapes and sizes.
You may wish to take one specific aspect of your business and remodel it in some way to meet the needs of your customer better.
Or you may want to complete an indepth review of your business using a full SWOT (Strengths; Weaknesses; Opportunities; Threats – see attached) analysis and then reshaping it accordingly. Improve on your strengths; address your weaknesses; Take advantage of your opportunities; Reduce or eliminate your risks.
If you wish to take the restructure a step further you can consider using the Business Model Canvas approach.
The Business Model Canvas
“The Business Model Canvas can be printed out on a large surface so that groups of people can jointly start sketching and discussing business model elements with post-it notes or board markers. It is a hands-on tool that fosters understanding, discussion, creativity, and analysis. It is distributed under a Creative Commons license from Strategyzer AG and can be used without any restrictions for modeling businesses.”
Source: Wikipedia
“The Business Model Canvas can be printed out on a large surface so that groups of people can jointly start sketching and discussing business model elements with post-it notes or board markers. It is a hands-on tool that fosters understanding, discussion, creativity, and analysis. It is distributed under a Creative Commons license from Strategyzer AG and can be used without any restrictions for modeling businesses.” Source: Wikipedia
Note: The information contained herein is for guidance only and may change over time. You should always seek professional advice and support to ensure that it is most appropriate to you and your own individual circumstances.