What Business Model Do You Choose?

When starting your business, at the core you have 2 distinct business models to choose from.  You can be the low cost, low service provider or you can be higher cost and provide more service &  handholding.  There is room in most markets for both models to succeed.  Many prospects say they want more service but don’t want to pay for it and are lured to the low cost option.  It is easier to sell service at a low price.  However, over time some low price clients may shop and leave you for the new lowest price option.  Or you may have prospects that see the value of paying a bit more to get more.

The low cost model must have lower overhead than high service model to be profitable.

Early on you may want to start off being low cost as you are a sole practitioner looking to grow new customers as quickly as possible.

As your business evolves, you may choose to increase pricing to pay for staff to provide better service.

There are pros and cons of each model that you must research.

Start to formulate what type of business and what type of clients you want to have now – so you can make decisions that support that vision along the way.

Happy Holidays!


Published on December 3, 2014 in Property Management

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