We’re all Startups Now! A 3 step process for business reinvention
We have experienced unusual times over the last 4 months. Markets shut down, supply chains have been broken, lost customers, all with no clear way through, but there is a silver lining to every cloud!!
We have the opportunity to see things differently, utilise outside the box thinking and start again!!
Join me as I unpack the wisdom of Ian Harris, Peter Engelhardt and Greg Clarkson and find the clarity of where to begin!
The Business Model Canvas is a way to identify opportunities for improvement
A business tool designed to capture, model and describe a business model on one page.
We are all start ups now. Everything has changed so substantially, that we are all start ups. What would you do if you had the chance to start again?
This is an opportunity to start again. This is like a free 3 months to discover a new more efficient, productive and profitable way.
Look at doing things differently – new packaging / new products / new marketing?
Start up phase:
There are 2 basic building blocks (questions to answer) in the start up phase:
- The Value proposition
- The Customer segments
Many of the pivots are around customers – and in many cases, they have been forced upon us at this time.
We are all start ups now – everything has changed so substantially. What would you do if you had the chance to start again?
Understanding our customers – who they are / who they could be in a reinvention of your business
Our customer ISN’T Everybody!!!
Being all things to all people, just doesn’t make sense. If you’re not solving very specific problems then you’re unable to command a premium price. Your customers will then shop on price.
If you solve one problem better than anyone else, then you’re more likely to achieve.
For Example: If you’re business is in I.T. How do you connect with your ideal customer?
People type in more specific problems into google – not just ‘fix computer’
You could decide to look for an industry where IT is really important because there is a lot of government compliance issues. Health Care, for example:
Find out all the pains of I.T. people in health care and then specialise in that specific problem
Try this on your business:
1) Decide up on the market first
2) Then think about who your client is
3) Seek the Insights: Demographic and Psychographics
Need insights into what they are truly going through:
4 Things to look for when collecting insights:
a) Solution triggers – what changed in that persons life for them to need your product/service
b) Critical must haves – what does this person absolutely need in this solution
c) Decide on outcomes – what does it look like after they’ve used your product or service – what is the result
d) Likely road blocks – what would stop them from using your product or service
Connecting with your customer is all done on your website now, not through the sales person conversation – so it’s so important to get this language right. You must appear as though you are talking to them personally and understand them.
Best way to gather this information is to interview your customers. Not a survey monkey form, it’s about having that personal interaction to understand the pain, the emotion and the desire. This is for higher priced products – not a $1 bottle of water – something that people shop around for – get maybe 3-4 different quotes for.
Ideally best to have around 5-7 conversations. That will be enough to see a pattern.
Then adjust the product and service to suit that requirement (pattern)
Being all things to all people, just doesn’t make sense. If you’re not solving very specific problems then you’re unable to command a premium price.
Importance of technology enabling business to restructure, innovate and respond to change to fit in and help with the reinvention process:
If you have a great idea and you have a business model that matches the great idea – technology can help with the execution and delivery of that.
Once you get to the technology –
The technology may spark new ideas, give an understanding of new markets and send you back into the process of reimagining the business model. So it’s important to be open to improvement at all times.
Profit stacks framework:
Enough detail to get what you want:
When you have a sales problem?
What is the sales process – how the customer engages with you in the process and where is the bottle neck? Then we say, lets develop technology that actually fixes the real problem (the main pain point in that process)
What is the process we need to deliver value to the customer
In that process what is the biggest pain point we’ve got and can technology help us
What is the Profit Stacks Framework?
Describe your business by describing the following 5 areas.
- operations/ production
Then describe the process’ in each of these areas.
How much does it match our unique value proposition – and rate it out of 5.
Find the worst areas that don’t stack up to your value proposition
And ask yourself what is the technology we’re using in these processes and how can we improve it?
Fail often and fail fast, that’s the fastest way to success!
We have a rare opportunity to start again…. 3 months to plan and start the process of reinventing our business. And remember, fail often and fail fast, that’s the fastest way to success!
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Spend 45 minutes with Ian, Peter or Greg to design your reinvention, identify niche market and work out the best way to utilise technology to implement your invention!
There has never been a better opportunity to start again, with all your experience to date and the support of the BB4G Experts – Let’s make this time worth it.