The new week presents us all with fresh opportunities. Hope you had a great Monday?
I want to share 3 very crucial transitions in business that you either are unaware of or have plainly ignored up till now. Today I will only talk about one of them. I also term them crucial pillars because without one or more of them, we can safely say that your business may be heading the wrong direction, or to say the least, not positioned for maximum productivity. I will end up by giving some practical advice on adjustments you can start making from today.
The collapse of national and continental boundaries made possible by the internet has caused a global shift in the way businesses operate and companies that are unaware or too rigid to adapt are the most affected by this. For startup companies, this is where you need to get it right from the beginning. Some companies, either by sheer luck or foresight, were already positioned aright and they experienced unprecedented growth and explosion.
Let’s dive right into it!
THE 1ST TRANSITION – MODE OF OPERATION – FROM LABOUR TO LEVERAGE
The mantra of most businesses was to exploit resources and maximize labour in order to achieve maximum productivity. The demand, as regards labour, was for how much one could produce per time. Bigger companies with the capacities to hire large number of employees undoubtedly made more money. This philosophy was same for both employer and employee:
For the employer, it was: Increase your capacity/ investment base so you can hire more employees, install more infrastructure in order to get more results and make more profit.
For the employee, it was: Go to school, get a good degree so you can get a high paying job putting in 40 hours a week. If you want a raise, go back to school for more course and certifications . . . something like that.
Today, companies are not looking to spend more on the infrastructure or hire more employees, they are constantly looking to spend as little as possible on infrastructure and operations and fire more employees to reduce operational costs.
We now have things like cloud computing and storage, outsourcing and crowd sourcing at staggering levels. The new mantra is to get more results with the minutest effort possible.
THE NEW MANTRA IS LEVERAGE.
There is a shift from how much I can achieve by myself to how much we can achieve together.
The first step for big manufacturers was to outsource their productions to areas where the labour cost was very low – China. That in business is called a clue. The labor force in China is very big so the wages are relatively lower than in most places. That’s in manufacturing! In other non-physical productions, especially those that can be digitalized in any form; we now have the whole world to outsource to.
We have giants in business outsourcing their customer services to places like India where they can easily train people with good enough communication skills and connect them to their worldwide customer base.
We can set our asking price at the most convenient for us and still find someone willing to take it up. We have craigslist, and many other job/ project sourcing web platforms where an incredible amount of exchange taking place.
Like never before, we now have collaboration on a global scale to amazing levels.
Sharing is the new ‘IN’ thing.
Anything that cannot be shared is considered stale and rigid in this digital age. We now share information ranging from pictures to thoughts, comments, ideas, social networking, tasks and projects. Work is being shared and so also are the profits.
Some years ago, Mark Zuckerberg created Facebook on this premise of leverage and the world made him a billionaire in a few short years because we wanted to share our thoughts and experiences with our friends and family through the social network.
This is the first pillar for success in today.
There is more of collaboration than competition because we have realized that there is enough profit to go round the table.
Look at your business today and see if you are positioned rightly or wrongly in the area of leverage.
- What are you doing currently, that is taking up time and resources, which can be delegated or outsourced?
- Startups and small businesses must look to partner with other businesses on selected projects. This will not only enable you complete the projects faster, but if you outsource areas where the other party is stronger than you, it will result in a higher quality of production and increase your client satisfaction.
Have a productive day!
Please share your views and experiences in the comment box below!