Wednesday, Jul 6, 2022

Business Development and Entrepreneurship

The success of a business is often dependent on the success of the business model. Many businesses fail when they don’t understand their market and..

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The success of a business is often dependent on the success of the business model. Many businesses fail when they don’t understand their market and lack the necessary resources to address it. In order to ensure that your business is successful, you must be willing to face the challenges that come with it. For this reason, you must first identify a dedicated entrepreneur with strong entrepreneurial instincts and the willingness to challenge orthodoxies. For example, a company that has four new businesses is twice as likely to generate five times its investment as one that has one.

In the case of business building, you need to focus on reaching scale. Scale is a high percentage of profitable customer penetration in your target market. A business with four or more viable businesses is twice as likely to have achieved scale compared to a company with only one or two. Moreover, by focusing on building new businesses, you will build an organization with greater organizational agility and protect your business against industry disruptions. A good strategy is a key ingredient to achieving scale.

Lastly, you must test your business model to see if it meets a critical market need. For example, many of today’s most innovative companies were founded during the Great Recession, which was a prime time to launch a new business. By analyzing profit pools, you can ensure that you’re avoiding the same mistakes that happened to the banking industry in the aftermath of the COVID-19 crisis. In addition to this, a good business model should be easy to replicate, as well.

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