Every business either makes or loses money through the course of each year. Failing to earn more on sales than it costs you to produce the sales means things need to change in your business.
The challenge is in isolating what needs to change first. Use the BusinessCPR™ Management System to stabilize your business model if you are at an increased risk of going out of business. Use the 7-P Framework if you want your business profit model to work harder for you than you work in your business.
Overview
The 7-P Framework is used to understand better the unique business dynamics you need to master in your business model through the following organizing principles:
- Who you serve, represents your target customer
- What problems you solve involves your products and services
- When your customers need your help, tells you their purchase trigger
- Where your customers will want you to help them, identifies your place
- Why it should matter to your employees and
- How you are better than your competitors is how you develop the clarity and precision in your own business to ensure that your business earns a profit.
- At a profit to you.
An exhaustive examination of any profitable business will show that never is one of the seven elements listed above missing. The 5 W’s + H represent the “organizing principles” to be followed in writing a good story; couple them with the 6 P’s of marketing, and you have a compelling story for why people should and do spend their money with you to acquire what you do.
Another common element in every profitable business is how much thought, planning, and plain hard work is performed across the business. If your business is like most small businesses operating without much of a safety net, then looking hard at your business model to see the big picture is how you protect your business from failing.
The big problem in business is that you can be near perfect in the first six organizing principles listed above, and you can still go out of business if you fail to master the seventh crucial organizing principle: making a profit at the right price. You avoid business failure by identifying the 7-P principles most relevant to your business in setting a price that makes a profit. The good news is you don’t have to spend equal time on each of the seven organizing principles.
You’ll have to think through each of the 7-P’s to identify which principle(s) are most foundational to your profitability. This matters, because these are the principles, which represent your greatest chance of success, as well as your highest risk of failure.
Failing to determine the answers tied to the 7-P questions is not a viable option. Once you know who your customers are, what problem they are trying to solve, when they will most likely need your help, and where they will want to transact business, you can define why and how they should value what you offer at a profitable price point.
Fail to grasp these business fundamentals clearly and apply them to the small to large decisions they make every day and you will fail your business.
