In our business we run two or three business models which require many differences of approach and definitely bump into each other from time to time. When working on our plans for 2013 I was considering the different business models and it occurred to me that many companies have a very hard time introducing new models and perusing new opportunities. So in this short article I would like to set the foundation of how to establish a new business model and explore the inherent difficulties of operating multiple models.
First, I believe that when introducing a new model or going after a new market, which in many cases requires change in our model, there are two major pitfalls that cause failure. The first is expectations. This is ‘the grass is always greener on the other side’ syndrome. Initially looking at the new opportunity we are blind, to a large degree, by the amazing opportunity we perceive. The opportunity after all is what causes us to enter the new market or add the new product segment. Then reality sets and the difficulties we did not consider arrive. This is inevitable. But there are remedies.
Continue reading “Why is adding a new market or a new business model so hard?”