Business Model Evolution - What's next?

[CHR]

Is Your Business Model Flexible Enough?

Brandon's 'Evolve or Die' mantra gets a nice airing in this article. It really made me think... hope it does the same for my fellow florists.

"If you're not [flexible]," he says, "your competition will be."

In time, your company will also face disruptive innovations that enter the marketplace and challenge your business model. Consider travel agents and record store owners, many of whom were blindsided by the internet and didn't alter their distribution and pricing models to remain competitive.

One of the companies profiled is BeyondBlossoms.com. Interesting story about their business evolution. Having run across their blog and link development efforts on a number of occasions, I'm surprised to read that their annual sales are just $500K.

Take the flexibility test:

Are you open-minded about your business model? Measure your own level of flexibility with this quick quiz. The more questions you answer "yes" to, the more open-minded you are about your business model.

1. I think it's very important to know what's going on in other industries because I know that evolution in those markets will eventually impact my business model.

2. I periodically envision the company being 180 degrees in the opposite direction, imagining it with everything from a franchising model to various pricing and distribution models used in other industries. I let my mind wander the map, and I encourage employees to do the same.

3. I regularly read magazines and trade publications from outside my industry.

4. Every so often, I ask our best customers what they don't like about our industry, from pricing to distribution. Their feedback can be incorporated in new ideas within the company's business model.

5. I contact a few former customers every month to find out why they stopped buying from us and what kinds of products and services they're buying instead. I also ask what they still find lacking in the products and services they buy.

6. I've asked a range of people--from valued customers and board members to business mentors--what they think of our company's current business model and whether it needs to change.

7. Our company's business model is different than it was just a few years ago. It's evolved as we've gotten to know our customers, the industry and the marketplace.

Am curious if anyone is actively using a formal (or informal) method to glean the information in questions 4 and 5 above.