A business strategy is never a constant. As the economic climate, customer needs and technology factors change, so does the business model of any organization. It doesn’t matter whether you are minor or a significant player; the current economic and business scenario has injected the need for a lot of rethinking.
“In any business that grows big on one business model, transitions can throw everything in the air.” – Bing Gordon
Businesses across the world are embracing the new realities of market and customer behavior. Supply chains are getting reshuffled too. Amidst the challenges that the world has been going through, global trade and logistics have taken a new turn. The smart ones have already started working on the strengths of their business models. They are also adding changes and components to their business strategy, so they are relevant, ready, and keen to cater to new market dynamics. Are you one of them? If yes, then you are already on the right track. It is an excellent time to reexamine all that is going right and the things that can be improved.
Clarity and open-mindedness are all you need to step forth and re-sketch your business strategy.
Paint The Business Canvas
A prevalent and effective method for outlining your business strategy model is the ‘Business Canvas Model’. All you need to do is spread a big sheet of paper or drawing board and get your top team-members or partners together. Draw a big block and divide them into small building-blocks. The left side would be where you will park all those items that work as your business fuel. The right side would be dominated by customer-side factors and revenue-oriented parts. These blocks work as your business goals. List down these areas after a thorough look at each component that makes, affects, and defines your business.
- Key Activities
- Key Channels
- Key Partners
- Key Resources
- The significant value proposition that your business is about
- Cost-related areas
Now match these with some more areas.
- Customer segments
- Customer-service areas and behavior
- Revenue streams
- Revenue sources
Once these are mapped out well, step back and ask yourself and your team some tough questions about business strategy considering the new landscape.
Re-paint the Colours
While the overall structure of your business model need not be broken or re-arranged too much, it is still advisable to evaluate which building block is relevant, which is weak, which needs attention and which can be replaced or supplemented now. You may have to reconsider the cost areas. For instance,
- Can you reduce your marketing costs in any way?
- Can you cut down on distribution expenses?
- Can you find a better idea of identifying potential buyers?
- Can you find any more channels of visibility as a supplier?
This will help you get leaner, and fitter than before and better than competitors to survive and win the next set of business challenges. If needed, sharpen your value proposition by finding new pockets of value that you can add. Your product or service can be augmented so they can address the appetite that is emerging in the present set of market conditions. You can expand your revenue block. You can find additional streams here. A little innovation, and some creative additions, can help you carve an even stronger and smarter business strategy than what you had so far.
If you are a supplier or a small business entrepreneur, do not dismiss this idea as something that should be better left for the big shots of the business world. A robust and well-drawn Business Canvas Model will help you with something that you might, otherwise, not get enough time to introspect. Once you think about your core business cost, customer, and revenue areas with an open mind, you will gain a lot of clarity.
It’s time to draw some new lines because the boundaries of global business are getting blurred and disrupted. Jump in and get the best advantage now – bring your Business Canvas Model.