There are two business models, which have proven time and again to be extremely successful.
- Focusing on the minimum you can deliver.
- Focusing on the maximum you can deliver.
In today’s post, I’ll show you how both of these work, PLUS how to keep your current business model and open up a whole new marketplace!
Let’s start by looking at those 2 models.
The minimum model
The business owner who takes the first option, will focus all their smarts and creativity on cost efficiencies. They’ll embrace automation and AI. They’ll search for ways to lower their overhead on a weekly or daily basis. They’ll know exactly what the minimum required is and they’ll deliver on it.
There is a huge marketplace willing to pay for a stripped back product or service. We see them everywhere; no-frills airlines, feature phones, late booking websites, low price stores, etc.
The minimum model works. Really, really well.
The maximum model
The business owner who takes the second option, will focus all their smarts and creativity on excellence. They’ll place a premium on exceptional customer service. They’ll set the highest possible standards and achieve them. They’ll need to unceasingly focus on delighting their customers at every opportunity.
There is a marketplace who are desperate to be treated this way. And they eagerly, willingly pay a premium. It’s an exceptionally profitable marketplace, too.
The middle of the road challenge
The problem comes if you fail to choose… and end up somewhere in the space between those 2 successful business models.
- Better than the minimum quality, but not premium either.
- Less expensive than the premium brands, but not inexpensive enough for the price-sensitive.
- Products or services that are fine, but not remarkable enough for people to tell their friends.
By failing to choose, you fall into the anonymous middle of the road; where there’s very little interest and where it’s really, really hard to get noticed. There are of course some established brands who successfully plug the middle ground.
However, it takes a ton of resources (and a MEGATON of money) to stand out, when by default, a business is doing middle of the road stuff. No one talks about the unremarkable. No one. So, these businesses need to push their message via paid advertising.
Middle of the road businesses are also why networking groups exist. They have to push for referrals, because their message doesn’t (can’t) spread organically. They’re stuck in a frustrating, unending and very expensive fight for attention.
Your highly lucrative, new income stream
You can enjoy all the benefits above, whilst still retaining your existing model.
By developing an additional new brand, dedicated exclusively to either the maximum or the minimum edge of your marketplace.
Think about that for a moment.
This gives you the safety net of your existing model. Plus, it provides you with all the amazing opportunities that come from serving one of those highly lucrative edges. It opens up a lot of potential, yet with relatively low risk.
Yes, it takes planning. But I’ve worked on this with many clients over the years, and the results can be spectacular. It will allow you to open up a whole new legion of prospective customers or clients. I’ve seen what’s possible and it’s definitely worth considering, as part of your 2021 business development.