The previous discussion on this subject was on the top: "Business Design Series - Design Methodology | Design Mindset | Design Tools."
There are so many business design tools you can use in design but they all depend on the type of challenge you are facing in your business.
They are so much that I can't even highlight them all here during this posting. But as you engage yourself here on this platform I might likely discuss them. But for the purpose of this posting I will mention and discuss three (3) of them.
Is a business design tool used to monitor the macro environment or external factors affecting your business - This tool is for those looking forward to launch their business.
These include; government policies, tax laws etc.
This factor has to do with the spending power of customers based on their disposable income. For example: you cannot go to a rural area to sell gold wrist watches. You should be rest assured that your target audiences aren’t there.
This has to do with potential customers’ beliefs and traditions. For example: selling of suit in the north may not be profitable because they prefer wearing Jalabia and their native clothes.
Another example, from research more young people buy online than the old ones. Consider this factor when trying to sell online.
New ways of production, distribution and new trends are evolving in your industry, because the world is dynamic. Please avoid doing things in an old fashion way. Make use of technologies.
Basically, it is all about how the physical environment affects us e.g. Environment pollution, climate change, etc. These factors have the capability to affect our businesses positively or negatively. For instance bad weather can affect farming and outdoor activities and businesses.
This has to do with customer rights and laws. Legal factors needed to trade outside of the country. You are expected to study all those factors before launching your business in any geographical area.
Let's look at the next tool
The top down analysis: This is calculated by determining the total market then estimating your share in the market. For example: you can say; “if I have 5% of the market in my area I will sell 5000 watches.”
The bottom up analysis: This is calculated by estimating potential sales in other to determine the total sales figure. Here you do a full market research. E.g.
Moving over to the next tool...
Important notice:
In business do not be generalists at least as a startup. Let people know you for one thing even though you have knowledge of other things. However, there are still ways of letting people know other things you do.
You may bring it up while having a one-on-one conversation with a customer. Be known for something!
Every brand or business owner should have a business statement of what goals they help people achieve.
The next business design tool will be dicussed based on this sub-topic: "How to cash out from your customers pain points and challenges"
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