Business insideideas to share
We live in a changing world. A challenge of recession over the economies give a chance to re-evaluate business models, review the chain of value creation and modify the proposition to the final customers.
When to consider a change as opportunity?
Well, first of all, if current model does not give you a proper competitiveness and you feel like loosing basis under your feet – make a stop and turn around. Consider of making investement in market knowledge – a change came not only to you, but to your competitors as well. As market is changing, your knowledge of it are challenged. Therefore additional market survey is well appreciated to rebuild a knowledge over the market. This gives a chance for you to slow down the pace, reduce inertic move, just because of the move, adjust accordingly to the changes and resume the business more efficiently.
With stronger market knowledge it is a time to review the business model – are all the parties delivering the value equally? Some of them might be malfunctioning in changed environment, therefore adjustments to the functions would be in timely manner for you. Remember, the product itself is not the main value, why customers should keep with you. It is what you create around the product keeps them intrigued.
If this is something you aknowledge, then this change might turn finally into an opportunity for you and your business. Businesses as people, are too inertic, and blaming a changed environment will not cure the business for you.
Invest or divest?
As far as you aknowledged the fact of a change, it is time to make a decision what you do with it. Classic move would be to cut, reduce activity to wait through. But this is no golden rule. Investing in your business during economic slowdown might be a risky thing, but this is worth for you to consider. If assessment of your status shows the discrepency to be challenged, despite recession, investment into this change may foster your competitiveness and further growth, even in a downturn market. The question which your competitors adress to themselves as well. Some of them will not take a challenge to invest, and thus, will be challenged to keep the same share in business.
A change is a challenge, but challenging the change would change the challenge itself.