Industry leaders ranked updating a business model among the top 5 greatest game-changers for competitive advantage .
THINK LIKE AN INDUSTRY DISRUPTER !
Most business leaders rely on time-honored , standard business practices , but what if some of your core beliefs limit your growth ? Teaching yourself to challenge traditional thinking can help you to reinvent your old business model and grow your company in a whole new way . Try these simple steps :
> Outline your business model or one most common to your industry .
> Break down the main components of the plan and categorize them in broad terms , like Audience , Value Proposition , Resources , Revenue , Distribution , and Processes .
> Tease out the underlying assumptions that support each category by stating what personal beliefs validate that approach . Pay attention to how you understand consumer behavior , technology , economics , and contracting .
> Temporarily reject these core beliefs and brainstorm radical “ what-if ” approaches for each , even if you know they might be rejected .
> Look to other industries that use nontraditional models similar to your ideas , and broaden your understanding of why these approaches might work or fail in your market .
> Pick one idea at a time and fine-tune it to meet your company ’ s needs .
> Test the approach on a small scale , refine the plan , and repeat until ready to scale .
ÎÎResource Optimization . Business plans that incorporate renewable energy sources and efficiency technologies empower companies to streamline processes and product design . Consider ways your business plan can include regenerative resourcing to minimize waste and optimize cost management . Examples : Offering discounts for equipment trade-ins or reusing shredded paper for packaging .
ÎÎShared Assets . Digital technology allows some companies to avoid the cost of owning assets ( like real estate , vehicles , and equipment ) while still profiting from the consumption of these goods and services . Are there assets that you can rent , borrow , or harness in another way ? Think of ways you can create value while sharing the cost of infrequently or inconsistently used assets . Examples : Using a branded app for services provided by a third party or leveraging partnerships to share car fleets or office space .
ÎÎPersonalization . Highly adaptive business models embrace the emergence of segment-of-one marketing as the next iteration of niche marketing and mass customization . In this model , brands predict customer preferences by tracking behaviors , then customize their products and services to meet those preferences . How are you harnessing technology to create personalized experiences for your customers ? Example : Online recommendations based on past purchases or customized reports .
ÎÎVolume-based Pricing . Advancements in digitization allow multiple customers to consume products simultaneously and at zero marginal cost to the company . Identify products or services that can be digitized and offered to a wider audience . Examples : Online sale of educational courses or subscription-based access to digital programs , books , music , or other information .
ÎÎInterconnectedness . Globalization and rising costs are driving companies to embrace technological interconnectedness . How can you optimize value chain collaboration and keep your stakeholders connected ? Examples : Handheld tracking systems help manage deliveries and monitor supply chains , and sensors on machinery alert management to production problems .
ÎÎAgility . The ability to stay flexible and adaptive while releasing improved iterations of products and services is how agile business models empower brands to meet rapidly changing demands . If your operations plan over-emphasizes efficiency and ignores flexibility , you may want to consider more agile approaches . Examples : Maintaining low inventory while constantly developing and testing new designs , or implementing temporary solutions and rolling out rapid updates until a problem is solved .
Whether your business plan needs a complete transformation or just a few tweaks , looking at your operations in new ways and challenging business assumptions can help your company adapt to a rapidly changing world .
Contact your relationship manager at 855.274.2800 to learn how Sterling National Bank can help identify innovative ways for you to finance your new business vision .
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