Feeling Stuck in Your Business? It's Time to Redefine Your Business Model!

Did you know that many small businesses struggle or even fail not because of a lack of effort, but because their fundamental blueprint, their basic business model, is just flawed?

Well, today on Grit and Growth Business, we're searching deep into that blueprint.

We're not just talking about working harder, we're talking about working smarter.

So your business actually serves you instead of the other way around.

So if you find yourself pushing, if you find yourself sacrificing, yet you're still feeling stuck, you're still feeling completely exhausted, you're routinely frustrated, maybe even close to giving up.

Well, let me just tell you, friend, this episode is for you.

Let's identify what's truly holding you back and create a clear, actionable path moving forward.

Running a business isn't easy.

It's long hours, tough calls, and relentless pressure.

No shortcuts, no handouts.

Just grit, grind and the will to keep going when most would quit.

Welcome to Grit and Growth Business.

The show for entrepreneurs who know success is built the hard way.

Hosted by Ralph Estepp Jr.

A seasoned business coach, accountant, and fellow fighter in the trenches, each episode brings you real talk, proven strategies, and the unfiltered truth about what it really takes to build something that lasts.

Because if you've got persistence, perseverance, and determination, this is the place for you.

This is grit and growth business.

Hey, friend.

Welcome back to Grit and Growth Business.

I'm Ralph Estepp Jr.

Right here in the trenches with you again this week, and I'm really glad you're here today.

Now, last week, we faced reality together.

We acknowledged those hidden problems and we acknowledged them head on.

Today, we're going to go even deeper.

Because sometimes it's not about fixing small stuff.

It's not about fixing those small issues.

It's about looking at the big picture.

So let's talk about your business model.

That's the big picture that I want to discuss today.

First, let's be real with each other.

I know you're probably feeling drained.

Maybe you're even feeling overwhelmed.

And likely you're feeling unsure why your business isn't thriving like you had imagined.

You keep saying to yourself, this isn't what I expected.

Those dreams you had, maybe today they feel like nightmares.

And you know the feeling that.

That feeling deep in your stomach, that one that whispers, is this all even worth it?

Especially when you're working late night, you're sacrificing family time, yet still you're not seeing the needle move at all.

You've been working incredibly hard, doing everything you were told, but something feels Fundamentally misalign, blind.

It hurts.

It's frustrating.

And I know that because I felt exactly that pain myself.

And listen, I can still remember staring at my own number, seeing the hours I put in versus that profit, and just feeling absolutely broken.

My effort was huge.

But the reward, well, that was not a reward.

That was just minimal.

I felt like I was running on a treadmill.

I was putting in a ton of effort, lots of effort.

But on that treadmill, the scenery never changes.

And you're just getting more and more winded.

And that, my friend, that right there, that is truly unsustainable.

And maybe that's exactly where you are right now.

And if you're there, I want you to know this.

You're not alone.

And you're certainly not failing.

Now, you probably feel like you're failing.

But stay with me.

Today I'm going to show you why you're not.

And this isn't a judgment on your work ethic.

It's certainly not a judgment on your intelligence.

Because often the issue isn't you.

It's the very structure of how your business operates.

So let's get a better understanding of your business model right now.

Think of your business model as the operating system of your company.

It's how you create value, it's how you deliver to your customers.

And most importantly, it's how you capture that value back in the form of revenue and profit.

It's the engine, it's the chassis, and it's the steering wheel all working together.

And when your model isn't aligned with your goals in the market, everything feels unnecessarily hard because you can't drive forward if your business engine isn't working.

Let me ask you something.

I want you to be honest.

Do any of these sound familiar?

You're always busy, but you're rarely profitable.

Yeah, you got money coming in the door, but not much is left after your expenses.

Or maybe you feel trapped by those low value clients.

Or maybe your revenue is just absolutely unpredictable and growing your business.

Ralph, that just feels absolutely impossible.

And if any of these resonate deeply with you, the problem might very well be that your business model might be the core issue.

But I've got great news for you.

This is great news.

That's okay.

Because the good news is your business model isn't permanent.

You have the power and the opportunity to change it right now.

Look, ignoring these symptoms isn't just about lost profit.

It's about burnout.

It leads to missed opportunities.

And eventually, and you got to hear me on this, the Potential collapse of the very dream you're fighting for.

All that work, all that effort just completely can go away.

But now I want to share some solutions.

Like I said, this is all repairable.

Let's talk about some actionable steps to reshape your business model.

And let's take these actionable steps together.

Steps that can help you regain control and build a more sustainable and profitable business.

And here's where it starts.

It all starts with getting a better idea of your client.

So you gotta reflect on your ideal client.

You've got to know just who are you serving?

This is crucial.

So right now, I want you to get a pen and paper and clearly write down who you want to serve.

And this goes beyond basic demographics.

You need to describe their deepest needs, their most pressing frustrations, and more importantly, how your unique skills and offerings can genuinely solve those problems.

And see, this isn't just about a marketing exercise.

It's about finding the right people who truly value what you offer.

And more importantly, and this is the main part of this whole thing, more importantly are people who are willing to pay for it.

Because when you try to serve everyone, you often serve no one exceptionally.

Now, that's something I personally learned the hard way.

I've tried to do this.

When I started my business, I thought I had to take on every single client.

I didn't want to let a single prospect go.

That was a huge mistake.

But over time, I learned how to do it better.

I learned to think about their specific problems, focus on their aspirations, think about where they spend their time and what kind of language that they use.

Because that was the key to finding my ideal client.

You've got to do the same thing.

So it starts with the client.

Well, let's move on to step number two.

And that's evaluate your profitability.

Yes, you've got to know what makes you money and what is actually costing you money.

Start by listing all your products and services.

For each one, I want you to honestly assess which one consistently brings in significant revenue and which ones, despite all of your effort and your hard work, just drain your time, drain your resources, or even drain your profits.

And listen, I'm going to tell you right now, this requires a brutally honest look at your numbers.

And you can't just look at revenue.

That's the top line.

You know, the dollars coming in.

You've got to look at the profit margin for each product or services and what you might find that your busiest offerings, those that cost you the most time, are actually costing you money, or barely even breaking Even you know, to get very complicated with this, just create a simple spreadsheet and just list each offering.

It's cost to deliver it and it's revenue, and then calculate that net profit.

You might just be surprised by what you uncover.

And honestly, this is a step that most small businesses never get to, and it costs them dearly.

Well, let's move on to step number three, and that's it's time to revisit your pricing.

And here's where the rubber meets the road.

And this I'm gonna tell you right now, this is where most small businesses really struggle.

You've got to look honestly at your prices.

Ask yourself this really difficult question.

Are you pricing yourself based on your true value, on your expertise and the transformation you provide?

Or like so many people, are you pricing out of fear?

Are you pricing out of insecurity?

Or are you pricing merely matching what the competitors are doing?

So many do it that way.

But guess what?

It doesn't work.

See, underpricing is a common killer of small businesses.

It signals a lack of confidence.

And hear me on this, it prevents you from investing back in your business or even paying yourself fairly your price.

It's got to reflect the value you provide, not just the time you spend.

Yes, start by researching industry benchmarks, but also consider the unique transformation or the solution that you deliver.

Are you just charging for your time or are you charging for the results you create for your clients?

Now, this is a real mindset shift, but it's mission critical.

Because let me just tell you something right now.

If you don't know what you're worth, your customers will never be able to pay it.

Well, let's move on to number four, and that's streamline offerings.

Sometimes you got to consider offering fewer, more focused services or products.

See, this is about focus.

Doing fewer things exceptionally well often leads to greater success than doing many things poorly.

Let me say that again, so you hear it.

Doing fewer things exceptionally well often leads to greater success than doing many things poorly.

Think about it like this.

I think about the diner down the road.

For me, their menu is like a novel.

It's got to be 20 pages.

And in the end, their food is just mediocre.

And now you're saying, Ralph, why?

Why is that?

Well, frankly, because they're trying to do too much.

But by narrowing your focus, well, this is what it does.

It completely reduces complexity, it improves quality, and it makes your marketing clearer.

Take a look back at step number two.

We just talked about where you started to identify your top one, two or three most profitable offerings.

And ask yourself this, can you eliminate or de emphasize the others?

Are you able to create a premium version of your most popular service?

See, you've got to find those products and services which actually make you money.

And guess what?

That's where you focus your time.

That's where you focus your talents.

Stop trying to do everything, because in the end, when you try to do everything well, well, guess what?

You just can't.

And that is the truth most business coaches are afraid to share.

Like I said from the beginning, I'm going to give you the truth.

Then it's your decision if you choose to act.

I don't ask my plumber for antibiotics and I certainly don't want my doctor fixing my leaky pipes.

You've got to focus.

And finally, step five, and you've got to master this.

You've got to test quickly before making any major changes or sweeping changes.

You got to validate your new ideas by talking to real potential customers.

Maybe you create a minimum viable offering and get some feedback.

Hear me on this.

Don't build an entire new empire before you know if it resonates, before you know if it's going to work.

See, this is about being agile and minimizing risk.

Because I've got to give you some tough love here.

Small, rapid experiments can save you months of wasted effort.

And that's something you can take to the bank.

Talk to your current customers, reach out to your ideal client profile, run a small pilot program, get qualitative feedback first, then maybe a small beta test launch.

But this is the time to actually put in a grit.

If you want the growth, you've got to do your homework and see if it's really gonna work.

I've seen way too many clients over the years who suddenly pivoted their entire business, thought they had the next new amazing discovery, only to realize once they were deep into was a complete disaster.

Well, now you're probably asking, Ralph, do these steps really work?

Well, let me tell you about one of my former clients named Kevin and how these steps utterly transformed his graphic design agency.

When Kevin first came to meet me, his business, by all appearances, was booming.

He had three designers who were constantly swamped with projects.

They were doing logos for new startups, they were doing brochures for local businesses, social media graphics for influencers, even designer in some of those novel menus for restaurants.

In the end, he was the marketing jack of all trades.

He was saying yes to everything, convinced himself that volume equaled success.

But underneath that busy exterior, Kevin was drowning.

Let me just tell you, he was drowning.

He confessed to me that he was working 70 plus hour weeks, he was fielding calls at all hours and still he was barely breaking even.

He even told me he hadn't actually seen a paycheck of his own in months.

He'd pull his hair out over clients who haggled over every invoice or demanded endless revisions for that simple hundred dollar logo.

He told me one time, he said, Ralph, I feel like an order taker, not a creative professional anymore.

That passion he once had for design was being slowly suffocated by endless administrative tasks and chasing down late payments.

He had that treadmill feeling that I talked about earlier.

Running hard but not getting anywhere fast.

And he was just about ready to give up.

But then he reached out to me and we started unwind this mess.

I met with Kevin a few years back and using the very steps we just discussed, Kevin and I began to take a brutally honest look at his business model.

So first we looked at his ideal client.

We sat down together and we defined who he really wanted to serve.

And he realized his best work, the work with his highest profit, came from established mid sized businesses looking for a comprehensive branding project.

Not those one off logos.

See, these clients valued strategy, these clients paid on time.

And these clients understood the investment in quality design.

Not like those endless revisions for those stupid nickel and dime projects.

And then we had to take a hard look to evaluate profitability.

Listen, we dissected his service.

I mean, we tore them apart one by one.

And when we did, it turned out that those small quick projects he took, to quote he called it, filled the gaps, were actually profit drains.

They consumed disproportionate time, they required endless communication and barely even covered his costs.

And what we found, and he was not happy about this, in many cases, those jobs are actually costing him money.

We looked at the other side of it and those large branding projects, while they were fewer, were far more profitable.

And we quickly realized that it was where we needed to focus his efforts.

But then it came to revisit pricing.

Came time to do that and Kevin was not really prepared for this.

He sort of fought me on this, to be honest.

See, in the end, Kevin was severely underpricing his expertise.

He was charging like a freelancer, not an agency.

He was so far inside of it himself that he couldn't see his own worth.

So we restructured his pricing to reflect the value of a full brand identity and that strategic impact that it would have on his ideal clients businesses.

And Kevin started Charging for results, not just the hours he put in.

Yes, he was putting in the time he added the expertise.

And he deserved to be paid for those results.

But then we had to have another tough talk.

We had to streamline offerings, and this was tough but critical.

Kevin decided to phase out all of those low value, one off jobs.

He stopped offering social media graphics, he stopped offering those small print jobs.

And he focused like a laser on comprehensive brand identity.

He did website design and marketing collateral for his new ideal client.

Now, his team initially worried about losing work, but the clarity and the focus, they found it was invigorating for them.

Yeah, Kevin was afraid to make this change, but guess what?

It worked.

And finally we had to build that test into it.

We had to test quickly.

So before a full pivot, Kevin reached out to a few of his what he called past ideal clients, and he proposed his new higher value packages.

He honestly didn't know if it would work or not.

And the feedback was overwhelmingly positive.

Honestly, he said to me later, Ralph, he said, I was shocked.

His clients appreciated the focused approach and were willing to pay premium prices for a comprehensive solution.

Now, let's talk about the results.

It's all about results.

Kevin's stress melted away.

His working hours dropped to a sustainable.

And now a lot of people say that's still a lot, but a sustainable 45 hours a week within just three months.

And his revenue, let me just tell you about his revenue.

It didn't just soar.

His revenue tripled.

Yes, you heard me right.

Tripled in six months.

But more importantly than all of that, that passion that he had lost for his crap came flooding back and he was finally building the business he dreamed of.

One that allowed him to do his best work, to serve his ideal clients and best of all, to be compensated fairly for it.

Did he still have to work hard?

Of course he still had to work hard.

Did it still take that strong will?

Of course it did.

And yes, it still took that daily grit.

So now let me tell you something, and I mean this.

Listen to me.

Stop what you're doing.

You've got the power to make similar changes today.

It just takes some more work.

It takes some more grit and some more focused effort.

So here's your key takeaway from today's episode of grit and growth Business.

It's not always your effort.

It's just not.

It's not always your effort.

It could be your business model that's holding you back from growth and profitability.

And like I said earlier, you can reshape your model.

You can reduce stress and you can increase profitability.

And the best part?

You can do that.

Starting today.

You just need to commit to taking just one concrete step outlined here.

So let me ask you, which one will you start with today?

Do you want to live a life that's no more frustration, just clear, actionable change guided by your own determination?

You can do that today.

Well, next week, in our next episode, we're going to go deep into the power of knowing your numbers.

That's one of the things we talked about with Kevin, and I'm going to help you gain true clarity and lead confidence confidently and make financially smart decisions.

So if you want to make bold and effective decisions in your business, you best join me again next week.

And if today's conversation resonated with you and you're ready to take immediate action, here's your next step.

I want to encourage you.

Go to gritandgrowthbusiness.com and download the action plan Reshaping your business model.

I've designed this specifically to help you evaluate and reshape your business model with practical steps and prompts.

This isn't just a guide, it's a practical workbook that walks you step by step through the exact process that we discussed today, helping you pinpoint the issues and create your own personal roadmap to a thriving business.

Don't just listen.

Do I say this all the time?

Intentions will get you started, but actions lead to results.

You've got this and I'm right here with you.

So thanks for spending valuable time with me today.

And until next time, remember this.

Your business doesn't have to be a struggle.

With grit, with clear vision, and with the right model, you can build something truly remarkable.

Now go forth and create the business you deserve.

God bless you and I'll see you again next week.

My friend.

Thanks for joining us today on Grit and Growth Business, the show where real business owners find the clarity, courage and confidence to build something that lasts.

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Remember, success isn't easy and there are no shortcuts.

But with grit, growth is possible.

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