Small Business Models to Go

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Morphing a single idea into a multinational organization is not new. The concept of using affiliates and alliances to do this has also been with us since we had people on the planet.

Big or small, building a brand is the key and this in turns is about getting trust loyalty and buying habits of consumer communities established the higher this is the higher the value to grow. To be successful Brands therefore need to be a intuitive metaphor of of value, quality and service that customers accept without question. 

For big business the recipe for growth is getting partners and affiliates also joining the game. It is also equally key to do this well to make the supply chain robust and impregnable. In combination it builds up a barrier to competitor entry and an ability to be able to add to the mix as product life cycles revolve in and out.

Icons like MacDonald’s, for example, started as big business. What distinguished them that way was not size but the way they organized their selling processes, how they presented that to markets for acceptance and how they engaged in their relationships to make it all work.

Coca Cola is probably unique in its class in that it relies solely on the name of it product that bears its name. It uses a model to maintain and hold their so called secret recipe. This gives them control of the brand while its appointed distributors are given a license to print money. A momentum leveraged model than cannot fail.

And let’s face it how would Ray Kroc, the MacDonald’s founder in 1940, have done so well with his sugar filled Hamburger and cookie cutter business model without the ability to add in a Coke to the menu mix. And who makes all the money? The small operators of course. That is those who take up a franchise make a big chunk, especially in the formative years.

Non aligned small business typically is generally individuals based and does very well focusing on a niche and the quarter mile principle. It also relies a lot on protection of a personal branding to sustain itself. The essence of big business is the opposite. They use selling and service philosophies that allow it to share a livelihood from a brand and but still grow as a single identifiable branded unit.

The technology and motor industry is an example  where competitive pressure sees them constantly needing to be  innovative to improve, This industry made up of downstream distributors operating as franchisees. A sophisticated network of upstream suppliers also deliver to high standard company assembly plants and so on. These days the motor and IT hardware industry for quite some time has gone one step further by model sharing. This gives them efficiency to extended the business and focus on selling and service by adding only a badge.

Talking of the IT world the very concept of partners and small business is mandatory here with niche businesses surrounding all the software players. In the  personal and business software to achieve the branding sustainability it has in the world of conversion of technology from ideas and process Microsoft has built its business almost entirely around partners relying on them to execute their solutions.

Price Waterh0use Coopers (PWC) is another example as a service business that maintains its dominance in the  Accountants Market though branded partnerships all over the world. These are  required to delver their service to the corporate standard.

In the conglomerates of today we also see giants like Google and others taking on the world by storm when only a few years ago they did not even exist. Their “On The Front Page of Google” value model now synonymous with branding itself,  created infrastructure robots for others to use and share as a free market tool to add value trading in advertising at all levels. As a result a secondary industry is now making a good living off Search engine Optimization services as a now common place small business.

While small business is what makes it all work it has no more power than to compete strongly for a place in the market, It is a fact that it generally small business only exists by making a living off big business that established it in the first place. This in turn cannot survive without the business. Understanding your position and how to exploit it can be the key that can help your organization prosper.

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