The hot topic coming from clients this week centered around sluggish sales. In evaluating the P & L's, we were able to confirm that YoY sales were in fact down so it was time to get to work and figure out what was causing sales to slow down.
Where do you start when diagnosing the reason for declining revenues?
At RBI, we use Strategyzer's Business Model Canvas as a foundation of Business Development as it allows for rapid adjustment in the business model. It can also serve as a diagnostic tool when we, as business owners, are not seeing the results we are looking for in our business.
When using the Business Model Canvas, we can zero in on the right hand side of the canvas to learn more about the customer facing aspects of the business. This helps us to diagnose those aspects of the business that are the cause of declining sales. The 4 areas we are specifically talking about here are:
At RBI, we find that when we use a tool like Strategyzer's Business Model Canvas, it helps us create a systematic approach to identifying the root of the problem. If declining sales are the issue, it's likely that the cause is: