Launching a Business? Here Are 5 Proven Business Models for You to Consider

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Do you already have a service in mind, or are you working on entrepreneurial spirit alone? Both are a great starting point from which you can build a lucrative business. But if you want to inspire investors and customers alike, you need a compelling business model that fits well with what you’re offering. Here are five potential models to choose from.

1. Offer personalization.

Tech and the internet have comfortably reassured consumers that they can easily get exactly what they need. Get your business in on the action with personalization. Customized, tailor-made, bespoke, exclusive – these are all words that can attract certain groups.

Essentially, we want options, and it’s even better when the customer feels like they invented that option. From clothing to home goods to software, allowing people to build their own product carries a lot of promise.

2. Join the sharing economy.

Is your business a viable platform that allows people to get together and exchange good and services? From Craigslist to Airbnb to Uber, it’s possible that your new venture will involve taking a step back and allowing the community at large to decide what they want, and who they want to buy it from.

Relative to other models, there’s little investment risk here. Just ensure there’s a real need for your type of platform, and that you have ironed out issues of liability beforehand.

3. Let a buyer name their price.

Before procuring funding from Unsecured Finance Australia, consider a model that makes buyers feel like they’re practically stealing from you; or at least, very satisfied with the deal they got. Known as a reverse auction, this model lets the buyer name their price or budget.

It won’t work for every business, but it could be profitable if you have a great deal of inventory you can let go for cheap, or if your business has a ton of competition.

4. Offer subscriptions.

One model that has absolutely exploded in popularity in the last several years would be subscription-based services. Here, consumers pay a reasonable weekly, monthly, or annual fee to continue doing business with you.

But it’s not all Netflix. This model translates well offline, as we see millions subscribing to receive beauty and personal care items, food, lifestyle goods, and even cars to drive for a limited period of time. A subscription business model is one you certainly need to consider for your company.

5. Integrate internet and in-store.

The major challenge many physical stores face is competing with online shopping. Fortunately, the “bricks and clicks” business model has helped keep many physical locations in operation.

When you spread your efforts between both bricks and clicks, you’re supplementing your foot traffic with online shoppers. You can allow local consumers to purchase something on your website to be picked up at your store nearby, or simply sell inventory online and ship it in addition to offering it in person.

There are many more models to choose from than the ones presented here. No matter which you choose for your business, bear in mind that your model can become as much a part of the story as the product or service itself. Therefore, you want yours to not only speak to the modern consumer, but the consumer of the future.

Want to Thrive in Today’s High-Speed, Hypercompetitive Business World? Teach Your Management Team to Iterate.

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StrategyDriven Talent Management ArticleWhen boiled down to its essence, management is a system of managers, operating in concert, constantly adjusting resources based on new information coming in to keep the business on target. It involves coordinating complex efforts, enabling group work and constantly asking the question, “What’s the next most intelligent step from here?”

In other words, management is the feedback system of the organization. And managers who continually ask themselves and their teams what that next logical step to be taken is – and then take it, learn from it and repeat the process – are Iterating.

Iteration is the way effective systems solve problems whose solutions are too complex to be predefined. Just look for the highest?performing entrants in any given market space. Chances are they’re Iterating.

An organization that Iterates moves the right information up and down the hierarchy, in regular and useful ways, in support of good decisions. It doesn’t get stuck in an overly rigid plan, but instead stays flexible as it pursues clearly defined outcomes.

If you want to run a fast, flexible, focused management team, use these five key practices:

1. Output and Status Broadcasting. Managers must be crystal clear with themselves and each other about what they’re doing. They do this verbally via Verbalized Summary Outputs (the VSO), and they do it graphically with Pragmatic Dashboards. The VSO is a list of statements summarizing the output the manager will deliver to the organization into measurable, countable outputs – three to seven items that, together, account for roughly 80 percent of his or her results. The list should take 60 – 90 seconds to say out loud in a meeting. VSOs confirm alignment and provide a line of sight into how each manager’s (and thus each team’s) work impacts the bigger picture.

A Pragmatic Dashboard turns the verbal information of the VSO into graphic information, one graph per VSO item to avoid unnecessary data. The graphs are summaries of measurable output that include historical data on past performance, along with two futures: the planned future alongside what’s now expected. With these in hand, aimless monologues transform into specific discussion about the future because everyone can see what’s not going to go as expected.

2. Work PreView Meetings. In an Iterative organization, Work PreView Meetings are the regular meetings between a manager and his or her direct reports. They have a consistent rhythm that involves providing information, making decisions and ensuring plans are carried out with regularity. Meeting leaders strive to maintain a forward-looking orientation so that discussions of status are minimized and the focus is on “What’s going to happen in the future, and what should we do about it right now?”

The ultimate goal of any Work PreView Meeting is to decide what to do with the resources at hand given what the team knows now and what is has to work with. To do this, members present issues using an “OSIR Structure” – they begin with an Objective that involves measurable results; then a Status statement of future prognosis and expected variance; a short summary of the Issue causing the variance; and finally a specific Recommendation for a suggested action. This format ensures that the “presentation” is over within about three minutes, leaving the majority of the group’s time for productive discussion about what action to take next in light of the new information.

3. Group Decision-Making. Ideally, groups solving problems together are made up of only five to seven individuals. Larger groups can come together to approve or decline recommendations, but not to attempt to solve problems. Whether a group decision is happening in a large group or a small one, the process comes down to members teaching and the decider learning. When the focus is on understanding each other, rather than on obtaining agreement, information transfer is clearer and more complete. Once the decider has learned all he or she can and made a decision, the team implements without failure or sabotage, even if they don’t personally agree. The team is always Iterating and no decision is “final,” but every decision must be fully implemented or else no learning can come from it.

4. Linked Teams. Redefining how managers and their reports conceptualize their relationship to others in the organization means moving away from the notion of managing a group of individuals and instead running a team with a single charter. Everyone succeeds or fails based on whether the entire team succeeds or fails. This allows Iteration through proactive resource sharing, and it tears down silos as peers ask, encourage and even push each other to accept help. Managers are better off, and the organization is more successful, when peers on a team work to understand each other and make trade-offs in support of higher-level goals.

5. Front Line Self-Sufficiency. The fundamental function of front line managers is to make individual employees as self-sufficient as possible at both delivering their output and at forecasting it. To do this, managers need to put in place clear goals that are defined in terms of output, not task or process. Managers must also give front line employees ready access to the resources they need to do their jobs. Once front line employees know what they’re supposed to do and have what they need to do it, all that’s left to promote self-sufficiency is to make sure they’re keeping track of their own work – without management intervention. As individual contributors make accurate forecasts – promises – about their future output, trust improves between front line employees and managers, and better information flows up to higher levels of management, helping the organization as a whole to IterateSM.

About the Author

Ed Muzio, CEO, Group HarmonicsEd Muzio is CEO of Group Harmonics and an award-winning three-time author. An expert in the scientific study of measuring and modifying human behavior, he is a sought-after consultant to business and industry worldwide and a popular media source. His new book is Iterate: Run a Fast, Flexible, Focused Management Team (An Inc. Original, 2018). Learn more at IterateNow.com.

Group Harmonics, Inc., claims the exclusive right to use “Iterate,” “Iterative Management,” and the family of “Iterative” marks in connection with business consulting goods and services.

Leadership Inspirations – Planning

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StrategyDriven Leadership Inspirations Quote“You can never plan the future by the past.”

Edmund Burke (1729 – 1797)
Irish statesman, author, orator, political theorist, and philosopher

The Big Picture of Business – Wisdom From the Disasters, Recovery Through Compassion and Resilience

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StrategyDriven Entrepreneurship ArticleThe month of September saw natural disasters. In times of crisis, people came together to help each other.

Forces of nature: from disasters came citizens with noble hearts and a willingness to serve others. Young people sought to help, thus inspiring lifelong commitments to community stewardship. The beacons of light came from caring people, corporate contributors and a spirit of goodwill.

Wisdom from hurricanes and natural disasters: Bring your hearts and your hands. The worst disasters bring out the best in caring, compassionate people.

Hurricane storms do not redefine who communities are… they make communities stronger. Volunteers are the glue to resilient communities. In rebuilding after hurricanes, don’t just build the way it was. When there are tragedies, there will always be helpers. Heroism emerging from Harvey and Irma.

The more we do for others, the more we feel the “potlache” of giving to others. Natural disaster stages: Warning, hit, search and rescue, recovery, rebounding, analysis, flood prevention planning, learning from crisis, community development.

Commit to a program of volunteering. Heart warming scenes of neighbors helping each other in disaster spark the passion of citizens to contribute further. Ongoing community needs for volunteers are supplied by Volunteer Houston: http://www.volunteerhou.org. This is the central contact, as they work with hundreds of non-profit organizations in the greater Houston area, ascertaining needs and scheduling volunteers. Volunteer Houston gave me their Lifetime Achievement Award two years ago. To volunteer statewide in Texas, OneStar Foundation is the coordinating entity: http://onestarfoundation.org.

Houston Strong motivational campaign launched. It embodies resilience, rebounding from disaster, teamwork and volunteer spirit. Other memorable campaigns have included: Houston Proud, Texas Cares, Clutch City, H-Town, The City With No Limits, Houston’s Hot, Magnolia City, Bayou City, Energy Capitol, Space City, Texas Sesquicentennial, Texas State of Mind, Don’t Mess With Texas, Spirit of Texas. There were classic radio jingles: “My Home Town” and “Sounds of the City.” And there was “Houston Legends,” my seventh book, a comprehensive city history that inspired community forums, volunteer recognition and nostalgia.

George R. Brown would be so proud that the convention center bearing his name would temporarily house flood victims. He was a community leader and would be warmly greeting the citizens if he were here today. I knew Mr. Brown in the 1960s and 1970s, first as friends of President Lyndon B. Johnson, then later serving together on charity boards. His favorite accomplishments included the establishment of intercity educational and daycare programs. He was born in Belton, TX, joined the U.S. Marines in World War I and co-founded the construction firm Brown and Root. Pictured, GRB and brother Herman Brown. GRB and LBJ.

There are 23,000 non-profit organizations in the greater Houston area, in action to assist flood victims and citizens in need. Many other cities are sending rescue vehicles, supplies and volunteers. Kudos to friends and community supporters. Volunteers are always to be thanked for their service. In crises and other times, neighbors help each other.

In recovery from the disaster weather crisis, it is important to honor volunteers for their service. The more we do, the more we feel the “potlache” of giving to others.

Realities of giving and charity:

  • Ego charities benefit the organizers.
  • Celebrities often get duped into promoting causes.
  • Charitable involvement is not a game or contest.
  • Most companies give to communities.
  • Cause-related marketing is a good thing.
  • Some companies use “philanthropy” as a marketing scam.

Best advice to You, the Humanitarian:

  • Give generously.
  • Pick causes about which you are passionate.
  • Serve causes which serve many.
  • Your time is your most valuable commodity.

We’re a very giving society and want to make a difference. Companies making donations should be recognized. Human caring and hours of their volunteer service are what matters most. After the crisis, many unsung heroes render glorious service behind the scenes, where it matters.

Love and respect to the humanitarians.

About the Author

Hank MoorePower Stars to Light the Business Flame, by Hank Moore, encompasses a full-scope business perspective, invaluable for the corporate and small business markets. It is a compendium book, containing quotes and extrapolations into business culture, arranged in 76 business categories.

Hank’s latest book functions as a ‘PDR of business,’ a view of Big Picture strategies, methodologies and recommendations. This is a creative way of re-treading old knowledge to enable executives to master change rather than feel as they’re victims of it.

Power Stars to Light the Business Flame is now out in all three e-book formats: iTunes, Kindle, and Nook.

Unexpected Issues with Business Trips

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No matter how well you plan your business trip, sometimes there are events that take control away from us entirely. The best-laid plans are often the ones that fall apart in the face of adversity, and if you’re in an airport lounge or driving across the country, those hindrances can heavily impact your travel arrangements and business schedule. Sometimes, issues with business trips are completely out of our control, but knowing how to react and respond to them will go a long way to minimizing their impact on you and your career. Here are the best ways to cope with the most unexpected of issues.

World-Changing Events

Getting swept up in global events can be very frightening, and the fact is that there is, unfortunately, very little that you can do to prepare for them. Natural disasters, worker strikes, and even political unrest can have a severe impact on your travel plans, and they are far too big to manage on a personal level. The only thing that you can do in these big situations is to ensure that your friends, family, employer and work colleagues are aware of your location and your plans. In worst case scenarios, contact your nearest embassy and get advice on what to do next.

Car Accidents

Business trips by car are a great opportunity to discuss your strategies with your team and bond closer. Even if you’re traveling alone, car trips can be ideal for organizing your thoughts and mentally preparing yourself for the work commitments ahead. Car accidents are, of course, all too common, and if you’re injured while on a business trip, then there are going to be additional issues to consider, such as the insurance of your employer. As with any kind of traffic collision, it’s worth seeking legal advice from a team that has experience in automobile cases. Ideally, you want a legal team that works cross-country, with firms like Lopezlawpa.com who can advise you and guide you on the best course of action and has specialist knowledge of road accident cases.

Lost Luggage

If you frequently travel for work, you will have already perfected the art of packing! Losing your best luggage sets can be a considerable source of frustration, but the smart traveler will be prepared for the eventuality. Never pack vital work equipment or notes in your check-in suitcases, and always keep the most critical parts of your inventory close to hand. Never travel on a business trip without adequate travel insurance, and always be aware of the responsibility of your airline or coach when it comes to lost luggage. Of course, the best advice to avoid lost luggage is not to check any in and rely on your carry-on allowance instead.

The more that you travel for work, the more likely that you will eventually encounter mishaps, mistakes, and accidents. Always be aware of the potential for them and know what to do in the more extreme cases. Delays and cancellations may impact the end result of your business trip, but your safety and security should always be the priority.