Wim GE De Vos

Small businesses with a BIG impact

Golden rules for business

by Leave a Comment

It is so much more valuable to know how to think instead of what to think. That is why we need theories. Golden rules.

A good theory is like a power tool ⚙️.

Caution🔌: Todays management and strategy literature is often more popular because it is marketed like Coca-Cola instead of being truly useful or effective. (“hire A-players; have a good strategy;…🤷🏽‍♂️)
note: Yes this is a clear reference to Jim Collins & company who seem to write the theories first to only afterwards pick the subjects for their “research”… causality is all backwards.

A good theory does not change its mind.

It doesn´t apply only to some companies or people and not to others. It is a general statement of what causes what, and why.**

So here is such a theory or 3 golden rules from Harvard Business Review* on how to build a great business. It is based on statistical solid research and we have applied it rigorously since with success.

3 golden rules to build a great business

  1. Better before cheaper: don´t compete on price, compete on value.
  2. Revenue before cost: don´t drive profitability by cutting costs, instead find ways to earn higher prices or higher volume.
  3. there are no other rules: view all other choices through the lens of the first 2 rules.

So now you can go back to your pending strategic business decisions and apply the 3 golden rules…

  • figure out your product mix, growth, solutions strategy, pricing
  • decide which markets to enter or not, and how and when
  • make recruitment decisions, hire, develop, fire
  • marketing strategy, sales plan, service levels, customer satisfaction initiatives,…

The simplicity of these rules does not mean they are easy to follow through.

These rules simply drastically increase your probability of success…

*HBR “Three Rules for making a Company Truly Great”

** Clayton M Christensen

Rethinking SaaS …to SatS.

by Leave a Comment

Imagine rethinking software around the user and not the money.

Imagine Software at the Service (SatS).

Looking back we see that the transition from Software as a Product (SaaP) to Software as a Service (SaaS) was primarily about the business model. As a result it became all about the money. This new model to monetise then drove product design. Sometimes drove it off a cliff…

The result of this software optimised for a business model resulted in:

  • super aggressive sales practices (ever had someone from Salesforce on the phone?)
  • “Salesforce Fridays” (your best sales talent actually hating every single Friday afternoon after a super successful week because they have to “populate the system”)
  • hidden lock-in strategies of all sorts making you doubt deeply before adopting any product

But the times they are a-changin´… (and pretty fast recently)

The future transformation of software is all about the User.
This will re-focus software product design fundamentally.

Think Software at the Service (SatS).

Imagine software optimised for:

  • Autonomy of every user in your company
  • Employee engagement by allowing for a high degree of personalisation
  • full transparency and pay-as-you-use

Imagine software you trust deeply. Software you can mold and shape to be what you want it to be. Personalised for you.

Imagine taking deep dives into user types and habits instead of optimising for the high-touch or low-touch sales strategies. We will come to appreciate the power of personalisation by users instead.

Imagine software that is built to create value for the user not just the investor. Software designed with a focus on how it will serve the user best.

Imagine…and now build it. Your focus determines where you end up.

Small decisions that make a BIG impact 💥.

2nd Wave 🌊 – being a start-up again…🚀

by Leave a Comment

E387DAEA-D79C-48A8-B86C-7656377C7D3B

In the last couple of months many of us have been struggling for business survival. Now we are coming out of it we are at a crossroads.

Option 1: Back to the future.

Put all the bits and pieces into place just the way they were back in 2019. And hop back in the treadmill hoping that “this time my business will scale”. For the obvious reason that well,…that you picked things up where you left them middle of march.

“Along the journey we commonly forget its goal” F. Nietsche

But this is the low-probability-option to a scaleable business. Our businesses oftentimes had become an amalgam of different services and products trying to serve many different customers. And therein lies the reason for a very low Result/Work ratio…

Or Option 2: Hack value before you hack growth

This means going back to your customers and find out what they truly love 💙 about you, your company and what you have to offer. Find what it is they cherish and crave. And drop the rest. Listen, ask, interview. That is where the secret treasure is to be found 🏆.

Find your core, your focus, your true north through customer discovery.

This the focus 🎯 for your start-up. Cut the rest.

note: you have a number of asymmetrical advantages in your pocket already: existing customers that trust you, services and products you sold and got paid for, a team of knowledge people, sorted out the messy stuff of operating a company,… all things that allow you to spend all time and attention during the next few weeks on finding what it is people love about your company.

Hack Value before you hack growth…It is the starting point for success and scale as a start-up.

Now is the time to decide if you want to re-create the business you had or become the business you always wanted to be.

Choose wisely and embrace the consequences.

 

Inside the 1st Wave: Back to basics & #2020BusinessChallenge

by 2 Comments

For full Video drop – click here

IMG_4194

With this video I wanted to follow up on all the ideas and suggestions I received from you as a reaction to my earlier post “small businesses – 3 Wave Storm coming“. 🙏🏻
Share with you how we as small businesses can get through the first wave of this storm.
 
I addition I want to propose a #2020businesschallenge to all #businessowners, #directors and #boardmembers:
1. No layoffs
2. zero-profit-year
3. learning opportunity
 
Looking forward to your feedback as always.
 
If we work together – learn – be positive, we have the opportunity to come out of this as better people, businesses and as a society.
This is an opportunity in disguise. #bettertogether
 
#astoryaboutpeople #makewowthestandard #thenewnormal

WOW & after-WOW

by Leave a Comment

Screenshot 2020-03-10 at 11.29.57

Extracts from “How Tech Makes an Experience Out of Everything”, WSJ.

Insights in how a company roles & relationships can evolve by using tech to focus on experiences.

“WSJ: Where are the biggest openings for experience to make a difference on the bottom line?

Technology is where the opportunity really is, and the melding of it with the old things. And in the technology space, we think of common things like virtual reality, augmented reality, automation, et cetera, which are important. But what I’m thinking of right now is, are there other facets that you don’t look at, but are about the experience?”

 

“WSJ: Can traditional, analog companies improve experience?

Do you like Muji [the seller of household items and clothes] products? The lead designer there once said that Muji’s philosophy is to not go after what he calls the wow effect, the first impression. He said at Muji we look for the after wow. The after wow is you buy it, bring it home, and after a month say, that’s good. You know? So the after wow is a deeper experience relationship.

Most of what we award is about “wow!” Which doesn’t realize a recurring revenue service. It’s a “Oh, you really marketed to me really well, I bought it, I kind of tired of it, it isn’t useful for me.” So I’m going to be looking for the after wow.”

 

“WSJ: So do you have to be patient?

Not patient. Logical. Because its only something you can measure in larger time steps. If you’re trying to measure in a quarter, it’s not possible in a product that you’re trying to get people to enjoy for a year or two years or three years.

We have to think of all products like subscription products. Technically everything is a kind of subscription product; if you go to the supermarket and buy apple they want you to come back and buy apples. Nowadays how there are very few one-time products you buy, even homes.”

 

Let´s make WOW the standard. Together.