Do You Have The Best Business Model?

Durante o nosso grupo Executive Chamadas, um de nossos clientes estava perguntando sobre como Transição para um modelo de negócios Isso tem superior Retorna. Conceitos de Bread-Strok em que você deve estar pensando quando se trata de que tipos de atividades seus negócios estão focados. 

Ultimately, there’s a deeper question here: is your business model serving you and your goals? 

In this clip, we go into some broad-stroke concepts that you should be thinking about when it comes to what kinds of activities your business is focused on. 

prefere ler em vez de assistir e ouvir? Não há problema - aqui está tudo o que eu disse no vídeo como texto: 

Como gerenciamos efetivamente a transição de um modelo de negócios para outro? Especificamente, passando de um amplo negócio de serviços para uma consultoria estreitamente focada. Sim, é uma grande questão. A idéia é ir de um negócio criativo genérico baseado em serviços, onde estamos fazendo tudo-da estratégia aos designs a serem construídos-para produzir efetivamente algo, estamos chamando isso de Huddle Hack. Estamos vendendo há cerca de 5 anos. E é aí que queremos jogar. Entregue esse negócio, tem esse cenário do tipo Feast and Fome. Estamos tentando evitar isso. E, especificamente, neste caso, quando ele quer ir de um amplo negócio de serviços para realmente oferecer consultoria. Então, você está simplesmente dizendo que eu quero me concentrar no primeiro bit e não me preocupar tanto com a construção, o design e todo esse pouco. Porque é assim que você o definiu. Não é fácil mudar, o que Danny está falando, pois 'queremos nos concentrar de uma certa maneira' - não é fácil, porque existem muitas normas sociais ligadas a dizer o que é realmente uma agência adequada, o que é realmente um negócio adequado. Membros você tem? ”

I might unmute you Danny if that’s ok, so you can explain a little bit more and then people should be able to help you.

Changing an Agency Business Model

Good morning all. Yeah, it’s quite a big question. The idea is to go from a generic broad service-based creative business where we are kind of doing everything – from strategy to designs to build – to effectively productising something, we’re calling it the Huddle Hack. We’ve been selling it for about 5 years.

Essentially it’s a workshop-type product that offers, a lot upfront, a lot of value upfront. And that’s kind of where we want to play.

So the new model will rely less on fixed overheads and resources in house and it will be more going back to our roots, which is more of a collective collaborative model, where we’re pulling people together on specific projects.

And that’s partly in recognition of a project-based business like ours, with the peaks and troughs of winning business and then having to kind of scramble to deliver that business, has that feast and famine type scenario. We’re trying to avoid that.

Focusing on High Margin Areas

So what’s the best way to manage transition from one business model to another? And specifically in this case when he wants to go from a broad service business to actually offering consultancy.

Also Danny, I think I’m on the right track when I say this: actually, it’s not one business model to another, because consultancy is part of your current business model. So you’re simply saying that I want to focus on the first bit and not worry so much about the build and the design and all that bit.

So it’s more the strategy and the consulting side of it, right?

This is for everyone on the call: if you look at your whole business model, you will realise that there are certain parts of the business that are very high margin and then there are other parts of the business, which actually, cannibalise that high margin. Because that’s how you’ve defined it.

And there are moments in business when you can actually redefine based on what is your work-life priorities.

I’m making a general point here. It’s not easy to switch, what Danny is talking about in that ‘we want to focus in a certain way’ – it’s not easy, because there are so many societal norms attached to saying what’s actually a proper agency, what’s actually a proper business.

And funnily enough, I’ll tell you the kind of questions that people ask.

“Oh, so where is your office?”

“Oh, so how many team members do you have?”

“ Oh ok, então quantos deles estão em sua folha de pagamento? ”

e eles ainda fazem essas perguntas que você conhece, em vez de perguntar, ”

Que lucro você ganha?”

“Qual é a sua rotatividade?” Você deseja manter as coisas o mais fluido e o mais variável possível. E há pessoas com lucros enormes e enorme impacto no mercado sem se perder em custos fixos ou em seus modelos de negócios tradicionais. Isso, então o negócio é realmente um ativo? Ou se torna mais um trabalho próprio? Pode não funcionar sem você, ou pode não ter um grande multiplicador de 4 ou 5 ou qualquer outra coisa. Portfólio. Isso entra nele é simplesmente incrível. Tenho clientes com quem estou trabalhando agora e outros consultos estão trabalhando agora, onde um ou dois contratos estão contribuindo para 60% a 65% dos negócios. E é incrível, as empresas são enormes. É incrível, até o momento em que os contratos estão lá. Mas assim que eles vão, assim, os negócios apenas desmoronam. E é uma posição assustadora a estar. Você se sente bem e depois cresce, o contrato terminado e você se sente bem, novamente trabalho duro. Que tipo de vida pessoal? Que tipo de fluxo de caixa? Que tipo de critério de negócios que é importante para mim como pessoa?

And these are such wrong questions in today’s world where actually the economy is moving towards a gig economy. You want to keep things as fluid and as variable as possible. And there are people making huge profits and huge impact in the market place without getting lost in fixed costs or your traditional business models.

So again, you have to identify with what lens you are seeing the world and the business in its true sense.

Your High Cash Flow Entity Creates Your Portfolio

Now when Danny was discussing this, his main concern was actually if I move towards consulting, and if he’s the main brand in that, then is the business really an asset? Or does it become more of a self-employment?

And the point is, what you need to understand, everyone on the call, is that yes you can have 1 entity, which is a high cash flow generating entity, right. It might not work without you fully, or it might not have a huge multiplier of 4 or 5 or whatever.

But the point is it generates good cash flow which you can then take to deploy in your other assets in your portfolio, which could be your property, your stocks, it could be investing in new ventures, new startups or having another asset proper business, right.

So it’s how you build your portfolio.

But whatever you’re building, you need cash flow for that, you need positive money coming into the business.

Maximising Your Assets’ Potential

Now, there could be an asset that you’re sitting on but if that asset is not really maximising its potential, and it’s for everyone on the call, I’m making a general comment here, if it’s not maximising its value, then the asset value is also impacted, and the time and energy that goes into it is just incredible.

Reduce Your Concentration Risk

Also, the issue with some business models is that it’s actually relying on 1 or 2 big projects. I have clients who I am working with right now, and other consultans are working on right now, where one or two contracts are contributing to 60% to 65% of the business. And it feels amazing, the businesses are like huge. It feels amazing, till the time the contracts are there. But as soon as they go, like that, the business just crumbles. And it’s a scary position to be in.

So the constant effort is, how do we reduce concentration risk?

So that’s the nature of the agency world, and that’s 1 figure that one needs to be mindful of, which is what Danny was saying, famine and feast. You feel good and then boom, contract finished and you feel like ok, again hard work.

Your Business Model Should Be Shaped To What You Want

So it’s about sitting back, and really reflecting, and saying “what do I want?” What kind of personal life? What kind of cash flow? What kind of business criteria which is important to me as a person?

e, em seguida, deixe o negócio ser definido ao seu redor, e não o contrário. Eu sempre digo isso em alguns níveis. A equipe precisa se adaptar aos negócios e não o contrário. Dormiu sobre isso, ponderava sobre ele, pensei sobre isso e, na verdade, me sinto confiante sobre isso. Porque é aqui que está sua competência central. É aqui que você gosta do trabalho. E é uma margem alta e baixo custo fixo. A resposta é realmente não. É o mesmo mercado-alvo, talvez um pouco de ajuste fino, mas é a mesma proposição. E é apenas que estamos escalando uma coisa, na qual somos absolutamente impressionantes e que vamos desfrutar e é uma margem alta. Para dizer, não, é aqui que eu quero ir e é isso que eu gostaria.

The first is, the business has to be around you and not the other way around. The team needs to adapt around the business and not the other way around.

These are fundamental life philosophies that you need to focus on.

Looking at what we are talking about here Danny, I have reflected on this. Slept over it, mulled over it, thought about it, and actually, I feel confident about this. Because this is where your core competence lies. This is where you enjoy the work. And it’s a high margin and low fixed cost.

So on many, many fronts, I am getting ticks in my boxes and I’m like, “yeah, this makes sense.”

Do I have to change things significantly to do this? The answer is actually no. It’s the same target market maybe a little bit of fine-tuning, but it’s the same proposition. And it’s just that we are scaling up one thing, which we are absolutely awesome at and which we will enjoy and it’s a high margin.

And that’s it, you will start seeing the results, versus diffusing ourselves trying to do everything just because that’s how we did it 10 years back, and now we just need to carry on with it.

So it takes a lot of courage to change the direction of the ship. To say, no, this is where I want to go and this is what I would enjoy.

Vamos falar mais sobre isso em profundidade, mas pensei em fazer alguns pontos mais importantes para as pessoas apenas refletirem. Confira nosso outro blog no diferentes níveis de estratégia de negócios aqui. Shweta Jhajharia é uma das principais autoridades da construção de valor comercial e criador do modelo único de 6m. A Shweta é amplamente respeitada como um profissional impactante, inteligente e orientado para os resultados, que ajuda os líderes empresariais a liberar seu potencial para alcançar objetivos significativos e mais altos. Esta realização de potencial e maximização ...

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Shweta Jhajharia

Shweta Jhajharia is one of the leading authorities on Business Value Building and the creator of the unique 6M Model. Shweta is widely respected as an impactful, intelligent and results orientated professional who helps business leaders unleash their potential to reach meaningful, higher objectives. This realisation of potential and maximisation... Leia mais