- July 13, 2020
- Posted by: richard
- Category: Business plans
What happened? A meteor has just hit the Earth and the world has changed. You must evolve.
Thinking back to mid-March, the proverbial meteor hit the Earth and changed the world forever!
Since then, it has created an environment that isn’t suitable for certain types of businesses. These businesses aren’t generating any kind of income, thus not surviving, and are the businesses that are based around short-term equity.
The World Will Change
The world is going to change and there are three stages to that change – shock, recovery and rebuild.
We’ve had the shock – it hit us in March and pretty much ended in July. Things are now starting to open up again and that signifies the beginning of the recovery stage, which we will be in until January 2021. This stage is not an economic recovery – what it is, is a change of business models. And then, from January 2021 through to around mid-2024, is the rebuild stage – that’s when we will see the economic rebuilding. After this, 6 or 7 years of economic growth.
We Are In A Recession
Throughout the 2008 recession, gross domestic product (GDP) shrunk by no more than 2.1% in a single quarter. In April 2020, GDP fell by 20.4%, so you don’t need to be a rocket scientist to be able to realise that we are in a recession – and probably looking at four consecutive quarters of negative growth.
As entrepreneurs, we love change and the new opportunities it presents. I have seen the flawed business models of aesthetic and beauty businesses – they are all based around the same “sales” process. These businesses are built on short-term equity – and if you ran out of money shortly after lockdown was introduced, then your business is one of these and built, and dependent, on short-term sales. This is the flaw in your business model!
Now, when you look at the businesses which are still smashing it and going strong, and have been throughout lockdown – yes, they may have some short-term sales, but they also have products and services, a channel position and this is all targeted towards their brand.
The products and services they have is their online retail – yes, delivering short-term sales, but providing extra income.
The channel process is their subscriptions model – this is long-term income.
With the products and services and channel process in place, these businesses are drawing all of this towards their brand and creating brand-lead value. It is this combination that results in a rounded business model.
If you simply focus on your products and services, you’ll find that you are dependent on short-term sales – you must have a more long-term vision to have a more rounded business plan.
At Aesthetic Entrepreneurs, we are here to help you do just that!
So, I have four questions for you:
What is generating income for you now?
What products and services do you have, now or in the pipeline?
What is generating long-term income for you?
What would you consider your brand values to be?
Our Platinum Programme is here to help you create your own rounded business model.
Discover Platinum for yourself and get your shit together!