It is not the business with lowest cost structure that wins. It is the business with the best business model that wins.
You cannot be the same thing as all your competitors. You cannot be all things to all people. When we work with clients in this area, we are designing a business model to be positioned in such a way to get the clients of the type that you want to work with, getting paid what you’re worth and enjoying the lifestyle you deserve.
An optimized business model is one that has you positioned in front of your clients of choice in such a manner that you will be the preferred solution.
Some of the things that we do in this regard are as follows include:
- Determining exactly what clients you want
- Understanding exactly what is of value to those people
- Clarifying and narrowing what you exactly want to deliver
- Articulating how you will deliver that value
- How to get known by those you want to serve.
- The systems and processes internally that you will need to be able to provide that effective solution.
- Communicating the value of what you do.
- Determining how to specialise (not just in a technical, industry or geographic area
- Fewer competitors because there will be fewer firms who do what you do (the ultimate aim is to be in a category of one).
- Better margins because focused firms command premium pricing.
A business model is not necessarily bound by the obvious that everybody else in the industry is doing. When you work with us at Pricing Power, you will get radical insights and pioneering ideas into creating a business model that will deliver great value to your customers and, importantly, be providing you a business that you enjoy.
Andy Grove, one of the co-founders of Intel, has stated on numerous occasions that it is the business with the best business model that wins. His book was maybe aptly named: Only the Paranoid Survive”.