Your business model is the map of how your business makes (or intends to make) its profit. With new technology and changing attitudes in today’s workforce, the old one-size-fits-all model for business operations could hold back the true earning potential of your business. Here are three reasons why you need to look beyond the traditional business model to compete in today’s economy:
1. Self-Management Paves the Way for Innovation
Research says that what employees today want the most is freedom from micro-management. A study from Harvard Business School found that self-management not only boosts employee satisfaction but also lets them use their unique talents and strengths in a way that complements their colleagues. Self-managing professionals take initiative and coordinate their activities with co-workers, suppliers and customers without the need for middle management.
A flatter business structure means there’s less bureaucracy and more room for collaboration and innovation—exactly what a company needs to increase its bottom line. With cloud-based collaboration platforms and blockchain-powered supply chains, it’s easier than ever for associates to be on the same page without the need for a hierarchy, in which information and decision-making is continually sent up to the top and then back down.
2. People Want to Work for Themselves Now More than Ever
The linear business model of supply, manufacture and distribute doesn’t account for the ever-growing number of people in today’s workforce who want to quit their 9-to-5 and work for themselves. More and more opportunities pop up daily that allow people to do just that. As the workforce migrates from large companies to home businesses, companies that provide more flexible work opportunities will fair better amidst competition.
For example, Amway is a company that’s successfully done away with the one-size-fits-all model. It provides a platform for people to start their own direct selling business with the help of a larger organization that handles the manufacturing side of the supply chain. This business model means there’s no limit to Amway’s growth, as it’s fueled by the sales of its independent business owners who sell their products for them.
3. Businesses that Provide a Platform for Self-Employment Are Bound to Succeed
You don’t need to be a direct sales company to benefit from the trend toward self-employment. Companies like Amazon, Uber and Airbnb that serve as a marketplace for people’s home businesses are shown to perform outstandingly well in today’s “sharing economy.” If all you’re doing is bringing supply and demand together, you save a lot on overhead costs. You’re not dealing with manufacturers or inventory, so you can pour a larger amount of your resources into marketing efforts. Your only goal is to increase transactions made through you, since you get your slice of the pie with each one. As more people look for opportunities that give them flexibility and freedom from management, platforms that connect these people directly to their prospective consumers will have a solid footing in the business world.
Avoid business advice that claims to be a “one-size-fits-all” solution. Instead, pay attention to the latest trends in the business world and what’s working for the most successful companies today. With changes in technology and workforce attitudes, businesses that break free from dated practices are more likely to rise above their competition.