Inventing a Better Business

Okay, I don’t have any catchy intro, or any staggering statistics to start this post off.  Not yet.  Maybe when I finish it I’ll return to the start.

Actually.  That sounds like a great idea.  I’ve got no real outline for this post.  I’m just going to start brainstorming everything I can think of to start compiling an outline of a “better business model”.  I have a notebook (like, actually a hand written notebook, who knew???) of a ton of business stuff I’ve picked up on my way.  Whether reading online, reading a book, watching a movie, anything.  If it stuck out to me, it’s in this notebook.

So here comes a collection of quotes, thoughts, theories, and any other random idea I can pull out of my short-circuiting brain before it’s lost forever.  I’m not going to even try to compile and organize this information in a professional and compelling manner… bear with me.

What big companies have that I don’t

DON’T TRY TO COMPETE IN THESE FIVE AREAS!!!

  • Distribution
    • Lot’s of sales people for lot’s of products.
    • Can afford shelf space, end caps, sales reps, etc.
  • Access To Capital
    • The big guys can raise money – lots of it.
    • Big guys don’t have to worry about paying investors back in months or years.  Big time investors are looking for the return much further down the line.
  • Brand Identity
    • Don’t underestimate the power of the brand!!!
    • The consumer is FAR more likely to buy from the established brand, AND pay a premium for the comfort and warmth that comes with that feeling.
  • Customer Relationships
    • Access to customers = HUGE advantage!
    • Big companies have the trust of other big companies.  Other businesses are more likely to buy inventory from existing networks and relationships.
    • It’s easier for businesses to keep buying from the same businesses they’ve used for years.
  • Great Employees
    • Great people are drawn to companies with a great reputation, that pays well, and that can offer stability.

If you try to steal the giants lunch, the giant will likely eat you.


What I have that big companies don’t

  • Nothing to lose
    • How many great railroad companies got into the airline business?  ZERO.
      • They were all too busy protecting old turf to grab new turf.
    • Smaller businesses are more agile and able to adapt to shifting demands.
      • If Chocolate covered hot dogs took off, it would take months before McDonald’s could roll out the inventory, menus, advertising, training materials, etc. to all 31,000+ locations.
      • You could have Chocolate covered hot dogs on your menu the next day.
  • Happy with small fish
    • In the ocean, the first fish to die are the big fish.
      • Disney can’t be satisfied with a movie that earns less than $40 million.
      • An independent film that earns $100,000 can make a directors dreams come true.
        • FIND A NICHE NOT A NATION!!!
  • Presidential Input
    • You’re not removed from the decisions.  When the owner of 3M wants something done, he has to run it through board members, board members take it to the product developers, and so on down the chain.
    • If you want something done, it gets done.
  • Rapid Research & Development
    • Larger teams do not equal better and faster results.
      • 9 women working together really hard, still can’t make a baby in 1 month.
    • Great ideas come from smaller teams far more often.  Smaller teams have much more freedom and creative expression.

 

Home Bases, Outposts, and Passports (In an online sense)

I’ll need to add more graphs and charts to this section at a later point.  It will lose most of its effect without them.

Home Bases

  • Places online that you OWN.
  • You control what happens.
  • No one can take your home base away. 
    • The only way your home base goes away, is if you make it go away.
  • You SHOULD only have one home base.  However, depending on your business, you can have more than one.

Outposts

  • Outposts are places you don’t own, but you build and maintain away from your home base.
  • In the Military, outposts can be taken over, attacked, overrun, or burned down.
  • Online outposts can also be taken away.
    • Facebook can delete your profile and company pages.
    • Twitter can delete your posts.
    • LinkedIn could (probably will) go out of business and shut down.

Passports

  • Your online passport is the login and password information for each outpost.  Your credentials.
  • You can see some information while not logged in.  But in order to communicate, make changes, update things, you’ll need your passport.

Notes

  • The lines between your Home Base and Outposts allow for communication and traffic to flow.
    • You can imagine two lines connecting the Home Base and Outpost if you’d like.  One for communicating to, and one for receiving communication from.
  • Don’t over market on one Outpost.  Even if you can get away with it right now, it won’t last for long.
  • Only sell on your Home Base.
    • Your Outposts are there only to extend your reach, and to interact.
    • If you’re selling on your Outpost and that Outpost is lost, you’ve lost a segment of your market.
  • Provide a way for your users to go from your Home Base to your Outposts, and from your Outposts to your Home Base.  Make this move EASY.
  • You can extend your reach by participating on other peoples Home Bases.  These can also act as your Outposts since they allow for you to extend your reach and bring people back to your Home Base.
    • Example:  If you run Recording Studio like yours truly, you may be interested in posting on Recording.Org.  By building a reputation and name there, you build clout and bring people back to your Home Base.

The key is the selling happens on your Home Base.