Updated: Apr 21, 2020
We are experiencing many changes in our lives and throughout the small business ecosystem.
The most critical element to consider is the expansion of value and the applied methods of implementation to minimize financial risk. Much of the understanding involves both value and volume while combining industry dynamics with current macroeconomic scenarios.
Value refers to establishing what is essential to the customer - resulting in the efforts to create a healthier relationship that delivers a higher perception of excellence. The outcome reveals that benefits and services result in a simple equation, Customer Value = Benefits-Costs.
However, bringing "value" to the customer requires the ability to articulate macroeconomics that describes the current condition, long-term factors, interest rates, national productivity, collectively with economic indicators that include the business cycle. The situation consolidates the opportunity cost and the production possibilities typically curved by supplies, comparative advantage, and the gains for trade relevant to markets.
Today - right now is the time for small businesses to evaluate the "value" they provide to enable market opportunities. There are many types of deliverable values defined by various methodologies to sanction a perfect platform - to create products/services, new markets, new channels while maintaining existing customers.
If you are planning on a market comeback after the coronavirus, you surely will experience shrinking margins as competition will probably be more intense. The result will drive commoditization with moderate increase in costs. The approach to developing value is relevant to customer desires, demands, and often essential to convenience. Other examples of significance include the perception related to how value is delivered, the experience to acquire, and the innovation of products or services that ultimately solve a problem.
The objective is to create an all-new demand to achieve a high impact at low-cost while aligning with social importance. Moving forward will require crucial elements from developing an organizational structure, paying less for services to support a strategy to achieve sustainability. The approach requires you to be more relevant than ever, improving the value to remain competitive, and possibly finding the necessary real estate in a standalone market.
Strategy plays a vital role in the rise and fall of businesses based on strategic moves they plan to accomplish versus those without one to deploy. The situation requires us to renew our purpose, processes, ensure market-space creation while articulating our economic accomplishments to establish sustainable performances.
The strategy is to strengthen our focus on the competition, not necessarily the customer relative to the core strategy. The outcome should be the results of your time and attention to develop benchmarks while responding to competitors' strategic moves, preferably than on understanding how to deliver value - as it about defining what value is missing.
Today, start thinking about conducting an industry analysis, find and understand the five forces of Michael Porter and the procedural development of a SWOT analysis to match organizational strengthens and weaknesses to opportunities and threats crucial to your market. Now is the time - to develop an analytical framework that includes the necessary tools and methodology to systematically connect innovation to value while creating industry boundaries to influence and maximize opportunity, minimize risk, and increase market share.
I wish to equip you with a few ideas to begin your reconstruction, suggesting critical research and significant developments to make a difference in your entrepreneurial development;
Build a strategy formulation (evaluate yesterday, today, and the future.)
Develop a "business model canvas" to obtain high performance, key partners, and activities resulting in new channels and relevant to new products.
Be creative in forming new solutions
Seeking new market space exempt from other competitors.
Shift your future to demand and growth - evaluate the current microeconomics to strengthen your business decisions.
Examine the feasibility of becoming a global player
Search for excellence - build to last, sustain high performance. (efficiency plus effectiveness equals productivity aimed at increasing profitability)
Evaluate profitable growth effectiveness and methods to maintain high-performance.
Examine the opportunities for introducing value innovation essential to establishing a defensible position.
Review the strengths of the organization - seek online professional development (certifications) in preparation to create new products that enable penetration in new markets.
Concentrate on intellectual richness, multiple productions that focus on entirely new creations, configuring associated costs, methodologies, and market demand.
BAM Consulting can assist you in this process as we look forward to serving surrounding businesses to ensure success.
Click HERE to email us your questions, concerns, or suggestions - it would be a pleasure.