How to reshape your business approach for a better future (going beyond the norm)

In times of new uncertainties, you will need to think beyond the norm for business survival and continuity. Your approach to operate and function also need a review and probably a renewal.

Some businesses prepare for Today while there are those businesses who prepares also for Tomorrow. Here the different business approach taken will make a big determinant on its future. Consider each of the following types.

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1.??Deep Specialization of A Products and/or Services– this is a business where there is only one unique speciality of its expertise and the focus is solely on this one specialization. This specialization can be of a product or service. It is a highly specialized and a all-inclusive one stop provider to serve customers’ needs. They are the go-to specialist because you know they can provide you with above average products or services.

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? Advantages – because this is a specialized kind of business they possess the skills and expertise to command a premium price. They do not compete in any other area or even related areas. They provide a niche business that customers know they will do a good job.

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? Disadvantages – since the good fortune or otherwise rested on just one unique specialization, the full impact of market risk will be borne by the business. Typically business of such need to build strong working capital as reserve for the not-so-good times. So take note on building a strong working capital base.

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2.??Broad Products and/or Services But With One Single Specialization – this is a business that develop and possess a range of products and services but within its range there is a Star product or service. This Star product or service is their customers’ main attraction. They are well-known for this Star. Customers are drawn to this Star product or service and along with it, they offer other products and services too.

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? Advantages – their business model is quite diversified but not too diversified until? there is no key product or service attraction because everything is very similar to those offer by its closest competitors. Instead here the Star product or service distinguish them from the competitors.

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? Disadvantages – to develop a Star product or service requires time, talent,? experiments and resources investment. For these reasons not many businesses can create a Star product or service as it may affect their overall return-on-investment and payback period. But on a longer term basis, you should endeavor to invest in creating a Star product or service.

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?3.??Broad Products and/or Services But With Multiple Specializations – under this model there are a range of products and services being offered to the customers. But within this broad range, there will be a few streams of specializations branching out from the broad range of products and services.?

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? Advantages – this kind of setup offers a broad one-stop solution to its customers. It can a strong attraction to customers to get their needs satisfied. It is also a strategic way to diversify risk for your business.

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? Disadvantages – one of the key point about this model is that it requires multiples talent resources due to its multiple specializations. Attracting and keeping talent can become one of the most challenging task for the business. One way to explore this business model is through joint-venture or collaboration with others.

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4.??Single Specialization With High Potential Of Pivoting – this is a business model that slant towards advancing to the next opportunity frontier. In another words the business enjoys the benefits of a unique specialization and at the same time is always on a look out on how can this specialization be pivoted into the next big thing.?

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? Advantages – can be consider as an ever advancing business with a forward looking goal not only related to its present specialized product or service but also what can be transformed out from it. They tend to be innovative all the time in their thoughts and strategy. They are attractive to venture investors.

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? Disadvantages – besides the fact that they are putting all risk into one basket, this business model do require much investment and resources to research and develop the next new opportunity at the horizon. But for businesses keen to propel ahead, this can be a valuable proposition indeed.

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?With changes evolving rapidly in the marketplace, it is timely to be in the constant watchout and review on which business setup creates the highest return to your business both now and in the future.?