Chat with us, powered by LiveChat 4 Telltale Signs Your Association’s Business Model Needs Remodeling

4 Telltale Signs Your Association’s Business Model Needs Remodeling

Audra Hopkins

Has your association made any recent changes to the way your run business? Shockingly enough, you may need to.

No matter the industry a typical association’s business model boils down to a common interest: Keeping members happy. After all, members are what keep the lights running at your association’s office (assuming you have an office space), so creating a business model around those that bring in revenue for you is smart by any definition of the word.

But a good business model is much more than that. It should get down to the complexities of everything your association has to manage. So, if your business model is slightly out of alignment to what you’d like to accomplish, things can get a bit tricky.

It can be difficult to figure out when it’s time to update your association’s business model. That’s why we’d like to show you a few signs you can use to decide what’s right for your organization.

So, if you’re wondering if it’s time to bring your business model into the current times, this blog post is for you.

Sign #1: Your business model doesn’t include members

As we mentioned earlier, members are the life force behind your association. So, not having them included in your business plan is absolutely a no-go.

Including members in your business model means a number of things. To start, it means you’ve clearly outlined your target audience and you know who your members and prospects are. This means what they “look like” from a professional perspective, their age, their wants and needs, and much more. Capturing member personas is key in your business model if you’re going to figure out how to conduct business with these prospects.

It also means figuring out who else is catching your members attention. For example, if your association has any competitors in your field, you should know if members are looking to them for services you could be providing. Keeping an eye on the competition means keeping an eye on who your target audience is gravitating towards- which hopefully is your organization.

Sign #2: Your goals aren’t listed out

Listing out your association’s business goals is a must if you really want to accomplish all that you’re setting out to achieve. If you don’t have your goals in front of you, you could forget about major components in your plan towards future success.

Listing business goals within your model helps you to then develop a strategy to accomplish milestones and grow moving forward. It’s a concrete list that anyone on your association’s board of executives and/or staff can refer back to when they’re trying to be proactive about accomplishing these goals.

There are many different ways to list out your association’s goals. You can include this within the basics of your business model (think where your mission statement would go). You can also create an entire section dedicated to your goals. Or, you can place them right before your business strategy in order to keep the two close in proximity for viewing purposes.

Sign #3: You don’t have a set strategy

Building off of our last point, following your business goals should always be a plan of action. You want to achieve all of these different things- so, how are you going to get it done?

A business model should be a well thought out, documented plan on how to get things done the right way. Therefore, if you aren’t setting out with a strategy in mind, your business plan won’t be much of a plan at all.

Setting up a core business strategy for each and every goal you have will give you a path to follow to get things done within your association. It’s a way to organize, plan, and execute things for your organization, from the larger tasks to even the smallest, detail-oriented tasks.

Documenting a business strategy is also great for those working for your association to refer to at all times. This is a set plan that can be universally viewed, shared, and understood to help all staff members to work collaboratively and effectively.

Sign #4: You aren’t making projections

A well thought out business model should allow your association to make financial projections and predict where its revenue is going to come from, how much revenue there will be, and how long it should take to reach their revenue goals. If yours doesn’t, you know it’s time for a change.

Projecting the financial success of your association will help you create a better picture of all that you can achieve in your organization. An association that generates revenue would benefit from making projections for the future and trying to live up to those projections. But if your association is strictly a not for profit, you can project the revenue you make that will be funded into other areas in order to see the type of impact you’ll be making on your mission.

Keeping your business plan up to date with all of the twists and turns that life brings your association’s way can keep you prepared for anything. So, don’t fall behind when it’s time to make changes to your organization’s business model.

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