Creative Ways to Refresh Your Business Model

March 25, 2017

This blog was written by Isaac Jeffries, an associate of TDi.

Designing new business models is exciting – conversations full of optimism and intrigue, especially when you get the gut sense that this idea is a winner

It’s important that we don’t fall in love with our first idea. Yes, it’s a good idea, and there are several aspects that will probably succeed. But an idea being exciting does not mean that it has earned permanence.

It’s more likely that this idea contains the DNA of a highly successful model, but it needs to go through some refinement in order to get it out.

What we should talk about is persevering with the essence of the business, whilst letting go of some particular details.

It’s called “Pivoting”

Keeping one foot planted on the ground, then moving the other around to find a better position.

 

“An awful lot of successful technology companies ended up being in a slightly different market than they started out in. Microsoft started with programming tools, but came out with an operating system. Oracle started doing contracts for the CIA. AOL started out as an online video gaming network.”

– Marc Andreessen, Entrepreneur

 

Pivoting is tough to swallow, because it starts by accepting the idea that:

“We won’t survive where we are, but we might thrive somewhere slightly different”

This comes with the excitement of future success – there are several ways in which we can pivot, and there’s a good chance one of them will work if we think this through.

However, it requires a risk seeking disposition – a willingness to try something that might not work.

Here are some useful questions to prompt your thinking:

What if we had to offer the same value proposition to the same customer, but through a different product/service?

What if we had to offer the same product/service to a different customer segment – what would be different about the value proposition?

What would happen if we gave our core product away for free? Where else would we make money?

What if our service delivery had to move to an entirely digital platform? How could we serve customers without ever meeting them in person?

What partner activities could we do better ourselves?

What headaches could we remove through outsourcing? Which resources and activities could be palmed off?

If we wanted to massively increase prices tomorrow, what would need to change within our customer segments and service delivery? What would a premium model look like?

What problems will our customers be concerned about in five years’ time?

 

You’ll be surprised by the opportunities that sit slightly to the side of your idea.

Better yet, you’ll be surprised at how a small change can open up a whole new market, and yet other drastic changes may not diminish your value proposition at all.

Remember, experiments are your best friend. If your gut instinct is right, an experiment will back you up.

By being proactive, we can spare ourselves a lot of wasted energy and emotional stress, and quickly find our real audience.


Try it for yourself. Ask your team:

Are our customers validating our current business model?

If not, which parts are being validated?

Which elements (product, price, customer, design) are up for grabs in a pivot?

Using a Business Model Canvas, what would 3-4 different pivots look like on paper?

How can we quickly and cheaply test our new assumptions?

If our tests come back with good news, are we prepared to try something new?


Isaac Jeffries is TDi’s first ever employee, and has with over 180 impactful businesses around the world. He’s currently designing and building social enterprises in India, Papua New Guinea and Indonesia. He writes at isaacjeffries.com

Spread the love

9 Mindsets of my Favourite Difference Makers

TDi Senior Consultant Isaac Jeffries shares the philosophies and habits that are the hallmarks of his favourite difference-makers.

This is a concrete list of practices and mindsets for working in community, and maintaining connection to people without burning out or burning others.

Bilum: The Power of Story to Drive Inclusive Economic Growth

by Annie Smits, TDi CEO   In May this year we attended the first official public screening of The Bilum Story, hosted by the AUS-PNG Network at The Lowy Institute in Sydney. Before the screening, I introduced the film to a crowded room, by bringing to the fore a...

Why We Need More Coaches and Fewer ‘Experts’ in International Development

By Kate Wilson, TDi Associate   An intuitive mindset coach and mentor, Kate's insight and expertise is so valuable to our team – we hope it will be for you too. This post was originally published on Kate's website, Resources Reimagined and explores the vital role...

Reconciliation Week 2022: Wrestling with our role in the Indigenous Business Sector

Anna Moegerlein, Deputy CEO, TDi In light of National Reconciliation Week, TDi’s Deputy CEO Anna shares some of the unfolding story around our work in the Indigenous Business sector: What are the challenges we are wrestling with as an organisation, what are our...

Introducing: Accelerate with IBA 2022 Cohort

Our 'Accelerate with IBA' Showcase on April 7 was a great success. It's been an incredible six-month journey as we partnered with Indigenous Business Australia once again to equip a new cohort of business owners to grow, learn new skills, and explore their social...

Meeting Uncertainty and Crisis with Curiosity

Anthea Smits, TDi CEO   I’m going to be honest; I had a rough start to 2022.   We endured a bout of coronavirus in January, followed by a series of personal crises. Each of these would have been manageable on their own, but one after the other, at a time when...

5 Minutes with Difference Maker Tammy: Ethical Innovation in First Nations Fashion

The challenges of ethical production in the fashion industry are many, but they lead to innovation and creative problem solving. We sat down with Difference Maker Tammy Saville and discussed the joys and challenges of starting her own children’s label, and how the IBA Accelerator is providing practical assistance in helping her meet her social impact goals. 

Mindset in Entrepreneurship

Anna Moegerlein, Deputy CEO TDi I’ve been at TDi for almost six years, and in that time I’ve worked with about 120 entrepreneurs. The one thing I’ve seen, over and over, is that we all get tripped up by our own mindsets. Our mindset has a big impact on our success in...

Meet Difference Maker, Ruth

Ruth has worked closely with us on several projects including the Laikim Sister program, as well as our ongoing work with bilum.

Holiday Recommendations – 21/22

Looking for some reading, listening or watching recommendations for the holiday season?Throughout the year, in our Newsletter, we have shared various recommendations for reading, listening and watching. We share some of these below that you might like to enjoy over...