There are 2 business models, which have proven time and again to be extremely successful.
In today’s post, I’ll show you how both of them work, PLUS how to keep your current business model and open up a whole new marketplace!
The 2 models I’m referring to are:
- Focusing on the maximum you can deliver.
- Focusing on the minimum you can deliver.
Let’s start by looking at those 2 models.
The maximum model
The business owner who takes the first option, will focus on providing 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 minimum model
The business owner who takes the second option, will focus on cost efficiencies. They’ll consistently search for ways to lower their overhead. They’ll embrace automation and AI. They’ll know exactly what the minimum required is and then 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, low price stores, etc.
The minimum model works. Really, really well.
Just don’t land somewhere in the middle
The problem comes if you fail to choose, and end up somewhere in the space between those 2 successful business models.
For example.
- Better than the minimum quality, but not premium either.
- Less expensive than the premium brands, but not inexpensive enough for the price-sensitive buyers.
- Products or services that are absolutely fine, but not remarkable enough for people to tell their friends.
By failing to choose the maximum or minimum model, you land in the anonymous middle ground; where there’s very little interest and where it’s really, really hard to get noticed.
Middle ground businesses are why networking groups exist. They have to push for referrals, because their message doesn’t spread wide enough or often enough by itself. They’re stuck in a frustrating, unending and very expensive fight for attention.
Your highly lucrative, new income stream
Here’s something worth considering for 2023. Something that can help your business thrive, whilst still retaining your existing model.
What is it?
Develop 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 2023 business development plans.