This post is part of the 33 Ways to Amplify Your Profit Quickly.
To improve profit sustainably, you cannot think short-term only. You need to think long-term, too, and start improving your growth strategy:
Innovate Your Business Model for Long-Term Profit Creation.
Identify New Growth Levers.
1. Innovate Your Business Model for Long-Term Profit Creation
Sometimes, your firm needs a new business model because the existing one no longer has a compelling value proposition.
The objectives:
Review the historical performance.
Identify issues with the existing business model.
Determine the future market opportunities and potential of the new business model.
Steps to execute:
First, you review the existing strengths and weaknesses of your firm's existing business model.
Data Analysis
Evaluate the current performance of the business model.
Identify the key value drivers of the business model.
Internal strengths/weaknesses
Interview the internal/external key stakeholders to understand/map the existing business model.
Identify strengths (capabilities and assets) that can be used in the new business models.
External opportunities/threats
Conduct market research to understand the opportunities and threats.
Estimate the impact on the business model.
Then, you find a new value proposition that would become the basis of the future business model.
Use various lenses and multiple perspectives to discover new value propositions.
Conduct workshops and competitor benchmarking to find new value proposition ideas.
Assess feasibility and value potential of value propositions.
Prioritize and select a possible value proposition for the future.
After that, you can start designing the new business model.
Translate the new value proposition into a business model.
Decide how to deliver the value proposition.
Decide how to communicate the value proposition.
Prepare for the new business model implementation.
Finally, start implementing the new business model.
2. Identify New Growth Levers
Sometimes, your firm's business model is still valid, but you want to boost growth. It is time to find new growth levers that will accelerate the growth.
The objectives:
Identify the growth opportunities.
Prioritize growth opportunities.
Determine areas to accelerate growth
Identify the most promising way of growth (Grow the Core, Grow the Adjacencies, and Grow New Frontiers).
Steps to execute:
First, start with defining the current performance and the target for accelerated growth.
Analyze the historical performance and outlook for future performance.
Assess the drivers of value creation.
Conduct a workshop to determine the aspiration level.
Then, map and assess the breakthrough growth opportunities.
Find growth ideas by reviewing the growth areas of industry peers and examples from other industries.
Find growth ideas by comparing historical growth patterns with the growth archetypes.
Find growth ideas by using the seven levers of growth.
Conduct a workshop to identify opportunities.
After that, assess the impact magnitude and fit with the current capabilities to prioritize the growth opportunities.
Estimate the impact magnitude of the identified opportunities.
Compare capabilities with the requirement to deliver growth opportunities.
Conduct a workshop to prioritize opportunities.
Finally, develop an action plan to pursue the prioritized opportunities and implement the plan.
To see other ways to improve your profit, check the 33 Ways to Amplify Your Profit Quickly.
Alternatively, to continue exploring winning strategy, click here.
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