Simplify Your Business
Posted by Warren Goodridge, Feb 2 2022
Business-owners often face uncertainty. Either the market will change, our finances will change, or we meet with some unseen circumstance that can fundamentally change how we approach our business. It is for this reason that I always recommend simplifying your business idea to its core elements. Because the future is always uncertain, simplifying your business allows you to maintain flexibility in the market, against competitive threats and ensure that you can carry out your dream regardless of what twists and turns your business may encounter.
What does Simplification look like?
A simplified business is a business with a clear structure and automated routines. A business that has identified its core elements can adjust to unforeseen issues by removing excess bloat without fundamentally changing their product. A widely understood example of this is Apple Computers. In less than 20 years Apple changed a crucial component of their computers — the CPU — twice from PowerPC to Intel and then to Apple Silicon. Apple succeeded in these transitions without creating disaster because they understood their core element, their mission statement, which is “to bring the best user experience to its customers through its innovative computer hardware, computer software, and services.” By focusing on their core element, they were able to determine first that they needed to transition due to market factors and two, develop a way to transition without inconveniencing their customers.
How does it benefit me?
Simplifying your business allows you to focus on the area of your business that you desire the most — working on your craft — be it cooking, creating, meeting with clientele, or providing your service. Simplification also provides you with the ability to figure out what is important and what areas of your business you need to prioritize to keep your business afloat. Simplifying your business results in a concise mission statement, which is crucial when ensuring staff adheres to your mission. A complicated mission is difficult to impart to a large team or a team with high turnover.
How to find core elements and simplify
Start by understanding what you do and your unique value proposition. A unique value proposition (UVP) tells your customers how your business intends to solve their problem. Starting here is always important because once you have a UVP, you can answer “what is the minimum I need to have, or to do, to deliver on this promise.” While that statement may raise a few eyebrows, knowing the absolute minimum – knowing what you can do without – allows you to adapt in the event of unforeseen circumstances.
Your customer will always hold you accountable for what you promise. For example, if your restaurant promises “great food and great customer service at an affordable price,” you know that moving from a 3000sqft location to a 200sqft location will have trivial effect on your ability to deliver on this promise, whereas, refusing to decrease the business’s physical footprint can be the difference between remaining open or having to close.
I recommend a lean canvas when it comes to drawing out the core components of your business. A lean canvas is a one-page document that outlines what you need to ensure your business can run, your potential partners, your unique value proposition, your ideal customer and how you intend on reaching them. A lean canvas essentially lays the groundwork of your eventual business plan. Furthermore, with a lean canvas you can compare what your business needs to deliver on its UVP against how you are currently running your business to identify areas of your business that do not adhere to your UVP.
