From chaos to profitability

A focused business model was what we arrived at when I helped a small company with its strategy in October 2010. They had developed a strong technical product, but customers almost always needed it explained in a meeting.

A focused business model rather than a broad product

The problem was that the contribution margin couldn’t cover all those meetings. I also didn’t think that way of selling made the company scalable.

In two hours, we arrived at a more focused model. The product would target a specific niche in a market I believed was growing.

A clearer offering for the customer

My expectation was that a narrower focus could make the product easier to understand and give the company a better chance of making money. You can also find my experiences of developing a business in Iværksætter til jeg dør.

I was very excited about what we’d achieved. This account is my assessment after the strategy meeting in 2010; it doesn’t tell us how the company’s sales and profitability developed afterwards.

Also read about choosing a clear target audience.