When considering your unique value proposition, I find it helpful to consider a list of common value propositions to help guide me and my client’s thinking. To that end, here are eleven common value propositions that businesses might offer to their selected customer segment. Review the following value proposition types and determine which one is […]
Choosing a Value Proposition Type Read More »
The first step for a new business or an existing business coming out with a new product line is to define the customer segment they are targeting. During the early stages of the process, I recommend starting out with a broad definition of the customer segment. The following is a list of five common customer
Choosing a Customer Segment Type Read More »
Discover How Disruptive Innovation Transforms Complex Markets Into Simple, Scalable Opportunities. Learn Why Starting Small Might Be the Key to Big Success.
How Disruptive Innovation Can Help You Conquer a Market—One Niche at a Time Read More »
Many Believe Bigger Boards Are Better, but Small, Focused Boards Often Provide Better Oversight and Real Leadership. Discover Why Less Can Truly Be More.
The Surprising Power of Small Boards in Business and Nonprofits Read More »
Automation Is Transforming U.S. Manufacturing, Opening New Opportunities For Entrepreneurs To Compete In Small-Batch, Custom Markets. Learn How You Can Benefit.
How Automation Is Reviving American Manufacturing: Are You Ready to Ride the Wave? Read More »
Tapping Into Cognitive Surplus Can Unleash Incredible Innovation. Learn How Skilled Professionals Are Fueling Open Source Projects—And How Your Business Can Benefit.
Tapping into Cognitive Surplus: How the Open Source Movement Is Changing the Game Read More »
Tariffs, AI, and a Shrinking Labor Force Are Driving a New Wave of Onshoring and Automation. Discover How to Use Robotics and Apps to Stay Ahead of the Curve.
How Robotic/Automation Arbitrage Are Quietly Reshaping the Competitive Landscape Read More »
The only parts that make it into the mainstream are parts that can be manufactured in the tens of thousands. These large batches then require complex distribution channels and warehousing of inventory that ties up precious capital. With small-scale 3D printers, laser cutters, and CNC machines, parts can be produced at the point of sale.
The Coming Cottage Manufacturing Revolution Read More »
The world of the entrepreneur has been blown wide open by 3D technology. If you have an object you need to reproduce, you can use a 3D scanner to replicate it. Don’t have one? No problem! Go to your public library or another location, such as a Makers Space. Don’t want to leave the house?
The New 3D World – Bits to Atoms Read More »
Discover how shifting the way you ask questions can lead to breakthrough solutions in business and life. One old European tale reveals a surprising truth.
As Your Business Grows, The Strategies That Once Worked Might Be Holding You Back. Learn How To Identify And Replace Outdated Habits Before They Derail Your Progress.
Why What Got You Here Won’t Get You There (And What to Do About It) Read More »
When You Scale a Business Idea, It’s More Than Just Adding Resources—It’s About Redesigning the Entire Operation. Discover How Scaling Uncovers Hidden Complexities That Can Make or Break Your Success.
Thinking Big? Here’s How Scaling Exposes the Flaws in Your Business Idea Read More »
Letting Go Isn’t Always a Sign of Weakness—It’s Often a Sign of Wisdom. Discover How a Day on the River Reminded Me of the Power in Choosing to Move Forward.
When to Let Go: What Rafting Taught Me About Life and Business Read More »
Nothing Is More Dangerous Than an Idea When It Is the Only One You Have. Learn Why Smart Entrepreneurs Always Seek a Second Answer and How to Use Tools Like the Business Model Canvas to Explore Better Solutions.
Think Twice: Why Your First Business Idea Might Not Be Your Best Read More »
The next and final environmental forces block is “Macroeconomic Forces.” This section is used to determine if your business model can adjust to macroeconomic shifts. This is where keeping up with current events is important. In addition to watching the world and local news programs each day, I use an internet news aggregator that searches
Macroeconomic Forces and the Business Model Canvas Read More »
The next environmental forces block is “Industry Forces” and this section is used to determine if your business model will have a competitive edge today and tomorrow. To understand industrial forces, you need to assess who your competitors are. A tool called Data Axle Formerly called Reference USA (available at many libraries) is a valuable
Industry Forces and the Business Model Canvas Read More »
The next environmental forces block is related to key trends. The “Key Trends” block is used to evaluate if your Business Model Canvas takes advantage of emerging market trends. Are there any new technologies on the horizon that may undercut your business model? Don’t just look at the advances in your industry that may affect
Key Trends and the Business Model Canvas Read More »
The first environmental forces block is related to the market forces of the customer segments in your Business Model Canvas. The purpose of the “Market Forces” block is to verify that your model is in line with the evolving needs of your chosen customer segment. When you are looking at market forces, you should start
Market Forces and the Business Model Canvas Read More »
When you have completed the 9 blocks of the Business Model Canvas, you may have a well thought out business model. However, will it stand up in the real world? In the real world, your business will compete for market share and fight for survival every day. For the most part, the 9 blocks that
Four Environmental Forces Affecting Your Business Model Canvas Design Read More »
When a business advances from stage 3 to stage 4, the business transformation is nearly complete. During stage 4, company decay can often begin to set in as the administration of the business is placed in the hands of a “guardian.” The primary motives of the business guardian are comfort and security. Unity towards a purpose
Stage 4: The Guardians of Business Read More »
For a business to advance from stage 2 to stage 3, the business undergoes a substantial shift from being on the offensive and growth-oriented to becoming more defensive and focused on process improvement through business segmentation. The business segmentation associated with stage 3 sets up the business for shared leadership and management by creating multiple
Stage 3: The Athletes and Performers of Business Read More »
For a business to advance from stage 1 to stage 2, the business requires that the role of the Oracle be supported or replaced by a business development person. I refer to this new leader as the “General.” In our McDonald’s example from a previous post, it was a guy by the name of Ray
Stage 2: The Generals of Business Read More »
Stage 1 encompasses the pre-start-up and early start-up period of a business. A company is started by a founder who is essentially the idea person behind the business. I refer to this person as the “oracle. In classical antiquity, an Oracle is a person who can see and predict the future. The Oracle of a
Stage 1: The Oracles of Business Read More »
How Do Hotels Get You to Turn Off the Lights Without Nagging? Through Smart Design. Discover How Choice Architecture Shapes Customer Behavior—Without Saying a Word.
Hacking Human Behavior: How Choice Architecture Shapes Better Decisions Read More »
The other day I was asked if a person’s idea would make a good business. Unfortunately, I had to tell them that it would not be a good idea for them to pursue. While the idea might have been a novel and been a successful venture in the right hands, they didn’t have access to
Your Best Chance to Succeed in Small Business Read More »
Customer relationships can be either; face-to-face (like buying a car), phone (like Zappos), automated system (like Dell), or self-service (like WalMart).
Customer Relationships and Your Business Model Read More »
When we refer to channels in the Business Model Canvas, we are speaking about marketing channels or distribution channels. Here are 5 you should address: 1, Awareness 2, Evaluate 3, Purchase 4, Deliver 5, Customer Support
Channels and Your Business Model Read More »
The second step in creating your Business Model Canvas is to identify your value proposition. What is a value proposition? Simply put, a value proposition is a collection of products and services a business offers to meet the needs of its customers that helps to differentiate it from its competitors. For example, several manufacturers offer
Value Propositions and Your Business Model Read More »
“For whom are you creating value?” Sometimes that answer may be a bit complicated.
Customer Segment and Your Business Model Read More »
The Business Model Canvas is a strategic management and lean start-up template that a business can use when developing new or documenting existing business models. Basically, it is a visual representation that describes the nine critical elements of a firm’s product or service offerings.
The Business Model Canvas Series Read More »
In thick markets, you have a lot of competition and limited differentiation while in thin markets you have limited or no completion based on product or service differentiation.
Thick Market vs. Thin Market – What You Need To Know Read More »
Before You Build It, Ask These Four Market-Cracking Questions. Many Entrepreneurs Fail Because They Skip This Simple but Crucial Step in Product Planning.
The 4 Questions Every Business Must Ask Before Launching a Product Read More »
A fellow mentor who is an expert in retail once shared with me that opening a shoe store is one of the riskiest businesses to start and operate because there are so many bad assumptions you can make. In a typical main street brick-and-mortar shoe store, you have to select and stock the proper proportions
How to Learn Demand: Zappos Story Read More »
Test Your Leap Of Faith Assumptions Before You Scale. Learn How A Faulty Assumption Behind Obamacare Led To Higher Costs—And What That Means For Your Business.
To Break Silos and Drive Innovation, Nokia’s Leadership Team Challenged Norms by Swapping Roles, Holding Meetings in Wild Places, and Embracing Calculated Chaos.
How Nokia Shook Things Up to Spark Innovation—And What You Can Learn from It Read More »
Business Management Is Often Not Focused On The Right Elements Of Success. Sometimes You Have To Suspend Your Belief Systems To Reevaluate Your Business
Is Your Business Focused on the Right Things? Read More »
Trade Associations Offer Far More Than Just Networking Opportunities. From Group Health Plans to Benchmarking Tools, Membership Can Deliver Massive ROI for Startups.
Why Trade Associations Are Your Business’s Best-Kept Secret Read More »
When I grew up in Massachusetts, I remember reading a story about Joe Kennedy. He would go up to owners of older drafty apartments in downtown Boston and make them a unique proposition. Many of the units were poorly insulated and cost a small fortune to heat in the winter. Joe would agree to insulate
Capturing Value in Nontraditional Ways Read More »
Fifty percent of Americans over 18 years of age drink coffee every day. That translates into 150 million daily coffee drinkers that consume 400 million cups per day. Not long ago, brewing a cup of coffee at home or at the office involved purchasing a coffee pot from one company and ground coffee from another
Keurig’s New Business and Economic Model Read More »
Many local ecosystems have initiatives and programs to foster innovation in their own community as a way to grow new technology or manufacturing companies. They do this in the hopes it will bring in new money as the primary employer grows to maturity. However, sometimes it is not the product that generates the revenue, but
New Product vs. New Economic Model Read More »
Primary & secondary employers are vital to local ecosystem, One brings new money in and the other keeps money local, However each is treated different,
Ecosystems: Primary vs. Secondary Employers – Why You Need to Know Read More »
Discover How a Simple Observation at a Meat Plant Transformed the Auto Industry—and Learn How Looking Outside Your Industry Can Lead to Your Next Big Breakthrough.
Cross-Industry Inspiration: Your Secret Weapon for Business Breakthroughs Read More »
The Real Lesson Behind Open Houses Is About More Than Real Estate—It’s a Reminder That Blindly Accepting Common Practices Can Lead to Missed Opportunities.
Who Benefits Most From An Open House? Read More »
Are You Looking Into the Wrong End of the Telescope? That’s What It’s Like When You Focus More on Protecting Your Idea Than Sharing It. Innovation Thrives on Collaboration, Yet Too Many Inventors Get Stuck Getting Patents to Protect Their Ideas vs. Bringing Their Vision Into the World. A Great Idea Isn’t Valuable if No One Ever Sees It.
Don’t Flip the Telescope: Focus on Execution, Not Protection Read More »
My wife would say that the greatest way a man can ever show a woman he loves her is to buy her a diamond. This drives me crazy because the entire narrative that diamonds represent romance is pure marketing hype that almost everyone has bought into. Did you know that the tradition of giving a
De Beers, A Story About Controlling Supply and Creating Demand Read More »
Mary Kay Ash Built a Billion-Dollar Brand Not Just on Cosmetics, But on Genuine, Personalized Recognition. Her Success Proves That Appreciation Scales.
The Power of Employee Appreciation: What Mary Kay Ash Knew That Most Leaders Miss Read More »
In business, many of the most promising and productive individuals have fragile egos. As the owner of a company, you need to be able to recognize and reward behaviors from employees that move the business forward or risk creating a Benedict Arnold in your own ranks.
Recognition Or Doom – Failing To Recognize Outstanding Performance Is A Colossal Mistake Read More »
Colors Do More Than Just Decorate—They Define Brand Identity. Discover How Powerful a Signature Hue Can Be and How to Choose One for Your Own Business.
Color Psychology in Branding: How to Own Your Brand’s Signature Hue Read More »
I was reading an article the week after Christmas that referenced “Boomerang Thursday”. I was aware of Black Friday and Cyber Monday, but not Boomerang Thursday. It turns out that this is the day that people return unwanted Christmas presents. Doing further research, I discovered several important business lessons related to Boomerang Thursday. First, the
Boomerang Thursday Read More »
Discover how Zappos uses a simple yet brilliant method to build a loyal team—and learn how you can create your own loyalty test for new employees.
Want Loyal Employees? Steal This Bold Move from Zappos Read More »
One of the goals of this blog is to help entrepreneurs think about common problems in totally new ways. To that end, I would like to introduce you to Takeru Kobayashi, who as a rookie in 2001 smashed the world hotdog eating record simply by rethinking the problem. Up to that time, the record for
Rethink The Problem Read More »
Sometimes You Need More Than Trust—You Need Proof. Discover How A Rock Band’s Outrageous Snack Request Became A Genius Test For Truth And Compliance.
The Truth Trap: How a Simple Test Can Reveal Who’s Really Paying Attention Read More »
Seattle’s Pike Place Market Isn’t Just a Tourist Attraction—It’s a Masterclass in Understanding Business Location Strategy. Learn How Human Traffic Patterns Can Make or Break Your Success.
How I Learned Firsthand Just How Much Location Can Make or Break Your Business Read More »
Flipping through the channels the other night I stopped to watch a Jackie Chan movie on TV. As I watched one of the fight sequences I could not help but see many correlations between fighting and operating a small business. First, my attention was drawn to the speed of his movement, which I equate to
How to Create a Knockout Read More »
There is a bit of an injustice in the way entrepreneurs are told about the business planning process. First, new entrepreneurs are told that to get money from a bank they need a business plan. While there is some truth to this, a major missing piece is that they will likely not get any funds
Increases in the cost of living affect low-income households much more than higher-income households. Therefore, the effects of our government’s monetary policies to control the cost of living are most visible at locations where low-income households shop, such as McDonald’s. If low-income households have less discretionary income to buy a burger, it is an indicator
McDonald’s Economic Bellwether Read More »
Operational Excellence – Why Quality Pays: Discover Why Competing on Price Alone Can Backfire and How a Focus on Quality Can Drive Higher Profits and Loyalty.
Operational Excellence – Why Quality Pays Read More »
When you send a package through the US Postal Service (USPS), you can buy insurance in case they lose your package, or you can save the cost and not purchase the insurance. If you do not buy the insurance it does not mean that the USPS will treat your package any differently. However, with insurance,
Buying the Right to Sue Read More »
I recently read an article talking about the school voucher program and how it would force schools to be more competitive. While I think there is some merit to the school voucher program there is a much more important business lesson here. A school voucher program would mean that parents could send their children to
What Can a 200-Year-Old Battle Teach Us About Modern Business? Quite a Bit, Actually. Discover How Fast Access to Information Can Make or Break Your Success.
Want to Stay Ahead in Business? Learn From a 200-Year-Old Financial Power Play Read More »
Longhorn Cattle were introduced to the Americas by the Spanish between the 16th and 18th centuries. The cattle industry back then was primarily a small-scale industry. Beef was not very popular, so cattle were raised primarily for the value of their hides. Because there was no refrigeration, any cattle used for beef had to be
What We Can Learn From The Texas Cattle Industry Read More »
Most Decisions Have Tangible and Intangible Impacts. Savvy Entrepreneurs Know That Success Depends on Weighing Both—Not Just What You Can Easily Measure.
Tangible vs. Intangible: How Systems Thinking Reveals What Most Business Owners Miss Read More »
Discover How Local Economic Developers Are Giving Small Businesses Access to Powerful Benchmarking Tools Like SizeUp. See How Your Business Measures Up Today.
How to Benchmark Your Business Like a Pro With This Free SBA Tool Read More »
I think we would all agree that making a profit is the incentive to take risk through investments. Moreover, it takes investments to stimulate innovation. But innovation creates productivity gains, which in turn eat into profit. For example, a tractor that costs as much as the labor cost for 150 workers, but which can do
Who Really Benefits Most From Business Investments? Read More »
The sustainability of your business revenue is important to understand if you want to keep your business solvent.
Not All Business Revenue Is The Same Read More »
China keeps its currency low to stay competitive—and that can benefit American entrepreneurs, but only if tariffs don’t erase the cost advantage.
How China’s Currency Manipulation Can Work in Your Favor as a Small Business Read More »
A trade deficient or a trade surplus unto themselves are not necessarily bad things. A trade deficit simply means that you buy more from your trading partner than he buys from you. The opposite is true with a trade surplus. You have a trade deficit with Wal-Mart, but a trade surplus with your employer. If
Understanding the Trade Deficit for American Business Read More »
Labor is a major component cost of any product or service. The lower the labor costs, either the wider the margin or the cheaper the price of the product or service. Cheap labor can be had by either opening our borders to immigrants who are willing to work for less, or by outsourcing. I contend
Immigration vs. Offshoring? Read More »
Discover How Leveraging Global Labor—From Virtual Assistants to Developers—Combined With Smart Cost Strategies (Even With Tariffs in Play), Can Help Grow Your Business and Boost Personal Wealth.
Is Offshoring Work to India and China Really a Bad Thing? Read More »
3 types of Investment risk. Greater risk = great rewards. Range = Inventory, least risk/reward, thru production equipment, to innovation most risk/reward.
Understanding the Investment Risk Continuum Read More »
Stop Trying To Be the Best and Start Focusing on Being Better Than the Alternatives. Learn Why Relative Value Matters More Than Absolute Greatness in Business.
Why Being the Best Isn’t Always Best: The Power of Relative Advantage in Business Read More »
Understanding the True Motivator Behind Human Behavior Can Revolutionize How You Lead, Market, and Sell. This Post Explores Why Status—Not Salary—Is the Real Carrot and How You Can Use That Insight to Connect More Powerfully With Others.
Why Status, Not Money, Is the Real Driver of Human Motivation Read More »
How can you get employees to think like owners? Learn how compensation structure, company culture, and incentives can shape behavior that boosts long-term success.
How to Make Employees Think Like Owners (And Why It Matters) Read More »
Small Businesses Often Undervalue Their Role When Partnering With Larger Companies. Learn How a Simple Hotdog Vendor Can Teach Us to Rethink Our Negotiation Power.
Three-quarters of all firms in the United States are categorized as “non-employers”. Non-employers are business that provides work for only a single or part-time owner. While small businesses which employ many people are usually started in response to marketplace opportunities, non-employer business is often started as occupational decisions. They can be a way to deal
How to Leverage a Turning Tide Read More »
Sales opportunities exist in a declining market. When consumers cut back they look for savings. Try to repackage or reprice offerings to take advantage
How to Make Money in a Declining Market Read More »
It’s Not About How Much Money You Make—It’s About What That Money Can Buy. Discover How Location Impacts Your Standard of Living and Your Business Profitability.
The Surprising Truth About Income and Standard of Living Read More »
Understanding How Value Creation Ties Into Wages Is Essential for Both Employees and Employers. Discover Why Raises Should Reflect Contribution—Not Just Tenure.
Wages and Worth: Helping Your Team Understand Value Creation Read More »
Success Requires More Than Just Serving Customers. Learn Why Both Your Business Model and Economic Model Must Work Together to Build a Thriving Company.
Business Model vs. Economic Model: Why Both Matter and How They Differ Read More »
Discover How Successful Entrepreneurs Use Unique Skills, Tools, or Knowledge to Gain a Competitive Advantage. Learn How to Identify and Leverage Your Own.
Unlocking Your Business Edge: Why Every Model Needs Special Leverage Read More »
Click Here to Discover How Successful Entrepreneurs Simplify Complex Decisions Using Math. Learn How Statistical Analysis Can Guide Smarter Business Choices.
Want to Make Smarter Choices? Turn Your Business Decisions into Math Problems Read More »
Are Your Efforts Moving the Needle or Just Keeping You Busy? Discover How Focusing on the Wrong Targets Can Sabotage Your Success Without You Realizing It.
How Targeting the Wrong Problem Hurts Your Business Read More »
Are You Running Your Business Blindfolded? Without Measuring Results and Tracking Feedback, You’re Guessing Instead of Growing. Learn How Feedback Loops Can Help You Make Smarter, Data-Driven Decisions That Lead to Real Success.
Why Most Entrepreneurs Fail Without Feedback—And How to Fix It Read More »
