Business design isn't a new concept for me or my clients. When I utilized it in the past, it offered my clients a significant competitive advantage.
As we look ahead to 2024 and beyond, Elastic Business Design becomes crucial. It is essential for long-term survival, productivity and profitability.
In the first year, approximately 20% of businesses close, debunking the 90% business failure, urban myth.
The significant risk to business closure arises in years 2-4, when about another 30% cease operations. That means after six years 50% of business are still operational.
How do they do it?
Successful business owners have learned how to adapt, learn and pivot to design their business to meet the real world demands of their customers. I call that Elastic Business Design™.
Once you master the principles of Elastic Business Design, they will form the cornerstone for building, growing, and evolving your business. Developing this skill will equip you to adapt and thrive amidst rapid change and ensure long-term profitability.
Building upon decades of experience as a business coach, I have observed that elasticity in business models is a key determinant of a company's resilience and long-term success.
Elastic Business Design provides short term results and long-term stability.
It's a strategic characteristic that empowers an entrepreneurs ability to flexibly respond and adapt to various changes in the economic landscape, including fluctuations in market trends, evolving customer needs, and alterations in economics and regulatory policies.
This elasticity enables the business to extend its capacity or modify its operations as needed, and then retract back to its original state when the change is no longer present.
The direct impact of elasticity on profitability is quite significant. Businesses that can swiftly respond to changes are in a strong position to harness new opportunities and mitigate potential risks.
Consider a scenario where there's a sudden surge in product demand. An elastic business model would allow the company to quickly scale up production to meet this increased demand, thereby maximizing potential revenues and profits.
Consider the possibility of unfortunate events like a major accident within your business, an economic shutdown due to a pandemic, or a significant increase in business costs. Elastic Business Design enables you to swiftly pivot and adapt, reducing risk and maximizing revenue.
However, the benefits of elasticity extend beyond direct profitability. Indirectly, elasticity enhances a company's reputation, customer loyalty, and overall market standing.
Businesses that demonstrate adaptability and responsiveness are often perceived as reliable and customer-centric.
Such positive perceptions can lead to increased customer satisfaction, repeat patronage, and potentially, more customer referrals. These factors, although indirect, significantly contribute to a company's long-term profitability and sustainability.
Incorporating elasticity into your business design and business model, therefore, is not merely about survival in the short-term. Instead, it's about learning how to leverage change and see change as a growth opportunity leading to long term sustainable success.
With elasticity ingrained in your business model, you're not just weathering the storm, but learning to dance in the rain.
Don't hesitate to reach out to Greg today for a free consultation. With an impressive three-decade track record as a business coach, Greg has the knowledge and expertise to guide you in designing your business for sustainable success.
A Business Plan will meet your needs when your bank manager asks for one when applying for a business loan, you are raising seed capital from an investor or you just want a fresh perspective on the current state of your business.
Whereas, Business Design Planning is a holistic approach that takes into account a broader view to business development including:
- Investigating and understanding the drivers behind disruption.
- Reducing or eliminating uncertainty.
- Addressing the complexity of changing customer preferences, supply chain issues and new trends.
- Examining the less obvious and often overlooked market gaps, business opportunities and innovation.
- Development of an Innovative Business Model.
- In Depth Management System & Process Design
- A comprehensive Product/Service Blueprint, concerted guidelines for the customer experience.
- Develop customer centered sales and marketing strategies.
- Business Design is especially helpful for start-ups attempting to enter a mature marketplace or buying an existing business.
- Business Design is especially helpful when you need a fresh approach to restructure, rebalance or recapitalize existing business debt.
- When you need more sophisticated mezzanine financing or venture capital scrutiny.
In conclusion, embracing Business Design in the post-pandemic world is not only a strategic choice but also a necessary one. It is the key to navigating the complexities of our new reality, to building resilient businesses, and to creating a future that is sustainable, just, and profitable.
Learn more …
Business Model Best PracticesKey Skills & Traits of Entrepreneurs Trends: The Hermit Effect, Demographics, Untapped MarketsConsiderations for the Post-Pandemic Period