The Morphing Business Model

Business owners start businesses based on the most rationale of reasons: they know the business from previous experience; they have a unique idea that will have market appeal; they have families who’ve been in the business  for years.  But then things change, not always but enough to bear watching.  For example,  clients of mine entered the catering business after graduating from an elite cooking school.  They knew their craft.  They knew the business.  They enjoyed some success.  But the catering business is hard.  Logistics can be complicated; the business is highly cyclical; competition is fierce.

Then something happened.  Everyone liked their food.  But everyone loved their appetizers.  They found more and more of their orders called for appetizers.  Then they thought, why don’t we forget the other dishes we prepare?  Why don’t we prepare only appetizers?  And why sell them only through catered events?  Why not make them, freeze them, and sell them to hotels and restaurants?  So they did.

They were able to standardize production for greater operating efficiency.  They altered the recipes slightly to accommodate the freezing process.  And they started marketing to hotels and restaurants.  Their quality is much better than the competitors’ frozen appetizers because they prepare them with all the care they learned in cooking school.  They saw a market niche and satisfied that niche with high quality.

Business is booming.  They are planning to expand their facilities.  They never expected to be in the business of producing and distributing food on this scale.  But they were smart to pay attention to what the market was telling them and respond.  What they did was risky.  But what business doesn’t face risks?  The key is to pay attention to your business and to the market.  Then adjust.

Designed by Ponder Consulting ®