hereforeIf we’re thinking about the future, none of us is passionate about the industry we’re in. We’re seeing troubles and struggles with every aspect of building a successful model for our business. How do we decide where to go from here?
Thoughts of the day: It’s not just startups that need to come up with a fresh-start business plan building a success model. Work backward, building your new plan around success factors. Make a plan to align your company, top to bottom — vision, strategy, goals, and tactics.
Building a success model can be daunting
Building a success model when businesses and industries run into major challenges, maybe just what’s needed. If you find yourself facing this situation, take a fresh look at how you plan to make money. Who you plan to serve, how the business will get transacted.
If you, as owner, have lost your focus, enthusiasm, and ambition for your business, make a change. Don’t let the company drift. The single biggest common denominator in why businesses fail? Failure is due to the loss of the owner’s drive and commitment to running a successful business. Therefore, take action now, while there’s still time to make needed changes.
List future success factors
Make a list of success factors you’d like to work with in the future.
- CUSTOMERS. Willing to pay for quality. For example, align with the identity of your company, recognize the importance of brand value.
- MARKETPLACE. Sizeable enough to allow you to successfully grow as you compete for a small share (under 20 percent). Limited marketing costs are needed to acquire clients. High actual or perceived switching costs once client relationships are established.
- OPERATIONS. Barriers to entry are diverse as they are plenty. Some are related to infrastructure, or the opportunity for efficiency improvements. The ability to align with other players to magnify offers is also common. Also, efficient and cost-effective ways to deliver, and limited need for no-fee hand-holding. Technical solutions readily available and adaptable also provide a competitive advantage.
- LONGEVITY AND EXPENSE. Low cost to acquire loyal, long-lasting customers with moderate demands for service
Assess how much your current business meets your success factors. Decide what would have to change in order to increase the number of success factors that play in your company’s favor.
Make your plan for building a success model consistent
Let’s say that your model includes the pursuit of high-paying customers. Make sure it’s clear what customers expect to receive. For example, figure out how your company will match customer expectations consistently. Document how to control costs to allow for a profit after successfully delivering. Above all, cite measures you plan to track to ensure the plan is working from every position in the company.
Meanwhile, check that you can sustain your model for a long period of time. But it can’t be easily copied. That is to say, our organization is capable of delivering what’s promised. There is little or no likelihood of successful substitutions from other vendors for the foreseeable future. Over time, use a model that allows the company to build brand equity. Assemble assets that can be leveraged to support future growth and development.
Do your homework
The more of these factors you can build into your plan, the greater the likelihood of success. Likewise, keep in mind that most entrepreneurs love to jump in and get going with activities. In conclusion, it’s the advance planning phase that will lead to long-term success. Do your homework.
Looking for a good book? “Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers” by Alexander Osterwalder and Yves Pigneur.
