bharatbhasha.com
Free Articles  >>  Business And Finance >>  Page 3313  >> 

Drive Your Entrepreneurial Dreams into the Size Customers Need





Whenever I meet people who want to start businesses, they usually are thinking in terms of a size for their operations that won't serve their customers very well. When that happens, a business will achieve only a few percentage points of its potential.

Why leave so much opportunity behind?

People don't see the opportunity.

But with continuing business model innovation, even too-small plans can grow up to gain the required size and focus that's needed. Here's an example of how a small operation grew rapidly to become the right size and shape for its best customers:

Iron Mountain started out as a regional data and paper records storage service, based in the New York and New England areas. Auditors had been concerned that computers have appropriate back-up records in case of failure, and usually insisted that companies employ off-site storage.

The ideal location for such off-site storage was a cave because security cannot be better, which just happened to be what Iron Mountain had to offer as its first storage facility. Since trucks were carrying data storage back and forth from customer locations and there was plenty of empty space in the cave, it was logical to bid for the paper storage business as well.

Gradually, management began to see that it could provide an outsourcing business for customers' records and information management. But it wouldn't do any good unless Iron Mountain could serve all of a customer's needs. Served by many tiny companies, the industry was ripe for consolidation and an improved business model.

Bell & Howell had the same idea, and had started in this direction by purchasing the Bekins records storage business in California. Soon, the company was acquiring small operators across the country. But Bell & Howell decided to do an LBO, and didn't have the resources to continue this strategy for Bekins.

So Bell & Howell sold the Bekins business to Iron Mountain. Now, almost by serendipity, Iron Mountain became the only national vendor of these services. The company could add value to local storage companies when it acquired them by bringing in national account volume, and more professional management of outsourced customer accounts. Soon, business was growing like topsy.

Without continuing business model innovation, however, Iron Mountain might easily have ignored the Bekins opportunity and the importance of handling all the needs for firms with a national footprint.

What are you doing to be sure that your business model fulfills what customers need?

Copyright 2008 Donald W. Mitchell, All Rights Reserved


About Author Donald Mitchell :

Donald Mitchell is chairman of Mitchell and Company, a strategy and financial consulting firm in Weston, MA. He is coauthor of seven books including Adventures of an Optimist, The 2,000 Percent Solution, and The Ultimate Competitive Advantage. You can find free tips for accomplishing 20 times more by registering at: ====> <a href="http://www.fastforward400.com" target="_blank">http://www.fastforward400.com</a> .


Article Source: https://www.bharatbhasha.com
Article Url: https://www.bharatbhasha.com/finance-and-business.php/127617


Article Added on Tuesday, April 21, 2009
LD
Other Articles by Donald Mitchell

Provide Price Incentives for Customers to Help You Lower Costs
In these days of global competition, the customer is more in charge than ever. That doesn't mean that you need to offer services that cost you a fortune: Better designed pricing can be a great help. Let's consider an industrial example. A commodity manufacturer of building materials studied its customers in terms of how the mix of products they ordered affected profits. The company had a unique manufacturing process that made it cheaper than competitors to produce higher volumes of identical...

Get Smart and Nurture More Prosperity Add Knowledge for Your Stakeholders
Add knowledge-development to help people directly, and you have a much more vibrant strategy. For example, immigrant communities in developed countries often pool excess funds to stake entrepreneurs to start small businesses, which often employ some of these same immigrants. Think of these pools of capital as being like fish ponds. In the process, immigrants learn entrepreneurial and work skills that give them more ways to earn a living. The successes the borrowers and their workers enjoy...

Change Your Business Model to Help Turn a New Technology into a Vibrant Growing Market
Many business leaders and engineers see the potential for higher performance by solving problems with new technologies. At first, only technical achievements occur. Finally, practical benefits become available. At that point, adventurous customers begin to toy with the results. Many have small applications. But the bulk of potential customers are skeptical and want to see more proof. Many promising technologies stall at this point. How can more progress be made? It usually takes a different...

A First Aid Kit for Fixing Your Broken Business Model Innovation Process
Almost every business has a first-aid kit to help injured people recover from accidents. It's only common sense. Yet few of these businesses know how to treat a broken business (or strategy) model innovation process. With these questions, you'll have just the first aid you need to recover from broken processes. Then, you can return your business to health and prosperity. These questions will help you discover better ways of improving and replacing your business strategy. By using these...

Outsourcing as a Core Part of Your Business Model
Who do you trust to help provide for your customers? Many companies only like to trust those who work on the company premises. While that approach increases the potential access to information, it may also deliver higher costs than being more trusting of outsiders. Most studies of best practices show that companies operate in most areas at around the level of average, with some serious advantages and deficiencies in a few areas. Why not turn your challenges over to people to are...

Monitor Your Business Model Tests to Validate Assumptions and Learn about the Unexpected
Why stay with an old business model, when you could have a better one? This takes identifying an idea you want to try. Next, you need to validate that idea. You are now ready to test your best ideas. By running more than one test at a time, you speed the chance that you will verify a good idea. You want to get into the market fast with your improved business model. Freeing up resources from tests that are failing can help you do that. How can you speed up the process of making those resources...

Avoid the Big Cost Cutting Mistake Hurting Sales
When is a cost reduction a cost increase? When the cost reduction drives too many customers away! Whenever you read in the financial press about a company making a large cost reduction, try to remember whether or not the same firm has done this before in recent history. Chances are that the latest announcement is just the latest in a series of such cuts. If layoffs and facility shut-downs are such a good idea, why didn't the company make all of the changes sooner? The usual answer is...

Build on Initial Breakthroughs to Develop Lasting Success A Storage Company Case History
In its initial business model, Iron Mountain focused on providing safe, secure storage of electronic records inside a large cave. This was a requirement of many auditing firms for their accounting clients. With lots of space in the cave, it was natural that Iron Mountain would eventually offer paper storage. Discovering that many national firms wanted to work with one storage company for all their sites, Iron Mountain bought up operations everywhere. The breakthrough it sought, however, was to...

Test Your Business Model Focus to Gain the Greatest Customer Advantages
I want to pose a few questions that will help you ensure that you are continually improving your business model in the most profitable ways. 1. Where has your current business model made you the first to offer an important stakeholder benefit? You will have to look back in time to locate this. In the case of American Woodmark, it was providing fast delivery for home centers. If you are not sure what you were the first to provide, ask your customers why they first selected your company....

Be More Skeptical About Cost Reduction Tests
Most business people use the same level of skepticism about everything they consider. Some are always optimistic that things will work out. Some are always pessimistic. Most people are somewhere in the middle. When a problem selecting the right choice is difficult enough, you will probably find that being very skeptical is the right route. How can you learn to be skeptical if that is not your usual way of thinking? Although legal concepts can often conjure up the unpleasant connotations...

Click here to see More Articles by Donald Mitchell
Publishers / Webmasters
Article ID: 127617
DELINK URL from Authors Bio
REMOVE Article
Tell A Friend
Leave A Comment!
Download this article in PDF
Report Article!
Search through all the articles:


156 Users Online !
Related Articles:
Latest Articles:
 
Business And Finance >> Top 50 Articles on Business And Finance
Category - >
Advertising Advice Affiliate Programs Automobiles
Be Your Own Mentor Careers Communication Consumers
CopyWriting Crime Domain Names DoT com Entrepreneur Corner
Ebooks Ecommerce Education Email
Entertainment Environment Family Finance And Business
Food & Drink Gardening Health & Fitness Hobbies
Home Business Home Improvement Humour House Holds
Internet And Computers Kiddos and Teens Legal Matters Mail Order
Management Marketing Marriage MetaPhysical
Motivational MultiMedia Multi Level Marketing NewsLetters
Pets Psychology Religion Parenting
Politics Sales Science Search Engine Optimization
Site Promotion Sports Technology Travel
Web Development Web Hosting WeightLoss Women's Corner
Writing Miscellaneous Articles Real Estate Arts And Crafts
Aging


Disclaimer: The information presented and opinions expressed in the articles are those of the authors
and do not necessarily represent the views of bharatbhasha.com and/or its owners.


Copyright © AwareINDIA. All rights reserved || Privacy Policy || Terms Of Use || Author Guidelines || Free Articles
FAQs Link To Us || Submit An Article || Free Downloads|| Contact Us || Site Map  || Advertise with Us ||
Click here for Special webhosting packages for visitors of this website only!
Vastu Shastra

Multi Domain Hosting Provided By AwareIndia







Company IDS