Uncategorized

Revisiting business models post-election

31 Aug, 2018 - 00:08 0 Views

eBusiness Weekly

Kudzai M. Mubaiwa
The Business Model Canvas (originally proposed by one Alexander Osterwalder), is a valuable tool for small enterprises in our time. Unlike a business plan that cannot change much, the business model canvas allows one to easily adjust an idea as and when they so desire, and even to do so completely with not much effort.

A business owner that wants to thrive in any environment, no matter how dynamic, has to master the art of continuous prototyping, testing and iterating. Canvases are the best way to continuously search and find evidence for a value proposition customers want, and ensure you always have a profitable and scalable model.

Risk is something that can never be eradicated, but the use of a canvas such as this certainly lowers it over time because you stay abreast of the facts, and find your niche in both services and products offered to specific “customers”.

This summary of a business model is an excellent guiding visual tool that can continuously be referred to and improved upon. After a major event like an election, your business is due to either create or revise its’ business model. Here are the angles to revisit. Here are the nine aspects to consider if we use a simple example of small business that makes school uniforms.

Value proposition is the first thing to re-look. The questions to be asked here are what problem am I helping to solve for the local people? What are their needs? What specific products or services will we offer them? What are the features of these offerings?

One may then in response note down that they offer custom designed uniforms for learners aged 4-18 years old at an affordable price (because they do not have the huge overhead the usual big brands have.

Customer segments section we will detail the specific subjects of our space — in this case it is children and youth who are the end users, their parents who purchase on their behalf or they may have a multi- sided market that includes the schools themselves who require wholesale product for onward sales. The important thing is to ensure the value proposition matches the needs.

Channels then speak to how these chosen “customers” will want to be reached. A plethora of methods are available but in the main one could use  radio and TV adverts, social media banners, road-shows, fliers and exhibitions at child and youth events.

Thereafter, after the first customers, word of mouth should kick in and the referrals by parents amongst themselves or schools will provide a steady stream of business.

Customer relationships are what we develop once the initial clients have been brought in, and there will be a need to create a community they feel they belong to, and there are a variety of tools that can be used. The emphasis is getting, keeping and growing the client base.

Being the digital age, both online and offline interactions are useful. Consistent newsletters, online discussions, physical meet-ups, and discounts are all things to look forward to for a community member.

Loyalty programmes are also a thing in Zimbabwe now, as clients look to reap the rewards of giving their return business or bringing in new customers.

Simple gestures like a free pair of socks for every five pairs bought or with each full set of uniform are appreciated, as are small give-aways the complement the business — branded pencil or key-holders go a long way and will ensure the recipient stays in touch with your brand.

Key activities speak to the practical elements of delivering the value proposition and in this case this would mean the daily operations and processes that go into sourcing material, design, cutting, sewing, finishing and delivery as well as the administrative elements.

You need to be clear on each of these and where needful take out that which is not profitable to your process. Naturally these would work in tandem with an appreciation of what you need to oil this and enable this, your key resources.

The fuel for the value proposition activities are the resources, hence the operational staff, the physical space, you operate from, the equipment, furniture and fittings, and a befitting retail store. No one grows in isolation, thus key partners are a critical component in the business model canvas.

Revisit who best can assist you in your effort to deliver your value proposition, in this case there are many stakeholders who can actively contribute to its success.

In this instance, the local government will be important as they superintend over most student institutions.

Other important ones are suppliers of fabric, those who do embroidery, financial institutions for working capital, distributors, and industry

associations in the manufacturing space and other social institutions where children, youth or their parents may gather as they provide the throughput of clients.

Other uniform production stores will be important partners for continuous knowledge and experience sharing.

Revenue streams are the next element that matters because sustainability is an issue of great concern for almost all business. Various approaches can be used — absolute selling of uniforms to end users, creation on order for wholesalers, offering complimentary products, bespoke products like church uniforms, toll manufacturing for industry colleagues when it is quiet for you and they are overwhelmed.

Others use a combination of all the streams of income. What matters is to force yourself to think about the many ways you can make money as you deliver the value proposition. Reviewing pricing models will be key and ensuring that you know through empirical evidence, the value your customers are willing to pay for.

Cost structure is the last of the nine canvas items; indeed it is imperative that before a business starts, they resolve the issue of how they will fund operations.

Ideally one should have a detailed research that is informed by the resources that will be required undertaken and from this you can more accurately price your product, taking account of that which you will need to bear upfront.

The presence of a well thought out model is an important thing, as the potential partners can clearly see what is happening, who is benefiting, how they can be part of it for mutual benefit.

Once you start, you can continuously be validating the model, then approaching partners only once you have gone full circle and desire to scale.

It is always more valuable to build a minimum viable product and to speak of experiences than to sell intentions for your business.

Now is the time to revisit the basics, and satisfy yourself that you are indeed building something people want! Only businesses with solid models that are consistently revisited will thrive in the new Zimbabwe, and those that ignore this practice, will be disrupted and die.

Share This:

Sponsored Links

Survey


We value your opinion! Take a moment to complete our survey

This will close in 20 seconds