In the beginning, Google (GOOG) tried to generate revenue, even by carrying out data mining in some companies. Although this idea wasn’t successful, it is clear that they were capable of re-creating their Business Strategy to become the giant technological corporation Google is today.
Sometimes, start-ups get blocked, or become “zombie” because they are not able to create a new Business Strategy. In other words, they have developed a Business Plan, obtained funding from investors and begun to execute part of the plan. But, what happens when the results don’t come in? Many entrepreneurs don’t know what to do under these circumstances.
Upon arriving at this point, the key would be to create a new Business Strategy to unblock the situation and reach expected growth. In the following paragraphs, I’m going to explain some real examples that confirm this hypothesis.
This start-up was created in 2014. The product was hospital software that allowed the costs of diagnosis and associated treatments to be calculated. It was supported by a very important accelerator, but after two years, they still hadn’t managed to install a base sufficient to support the Business Plan.
The founder was desperate. He was running out of money and didn’t know what to do. He contacted us to find out what he should do with his Business Plan.
During the first interview we realized that he was mainly working for public hospitals that have long sales cycles with unfavourable payment terms and this meant that he didn’t achieve enough liquidity to continue growing, even though some sales were being closed.
Our response was that he should re-think his products and client portfolio. In other words, adapt his Organic Growth strategy. We explained how to formulate a new Business Strategy to the founder and his team, and this is what they achieved:
- They created a new product to sell to new clients. This dealt with selling the Healthcare information obtained via their hospital software to pharmaceutical companies.
- Pharmaceutical companies are private. They have money and operate on short purchasing cycles. In addition, they are always interested in solutions which can give value to their principal clients, such as health organizations and hospitals.
- This start-up is now successfully executing the Business Strategy by selling two different types of solutions which complement and provide feedback to each other: the more systems deployed in hospitals, the more information generated to sell to pharmaceutical companies, which in turn allows a greater investment in hospital solutions.
This start-up was created in 2015. They intended to create a platform to connect 3-D Printing designers with users, with the aim of transforming users’ ideas into real objects printed in 3D. Their product and business model was supported by the platform itself.
However, the consumer 3D-Printing market has not yet exploded as expected. In fact, we only need to view the Annual Reports of 3D-Systems –DDD, or Stratasys – SSYS, to see this for ourselves, or even check the value of their shares during the last two years.
The founder needed to make more money and earn credibility. To do so, he contacted us to see if we were interested in investing. Our first response was that they needed to develop a new Business Strategy to expand their solution bank to the B2B market. In other words, first they needed to demonstrate that they were capable of generating income whilst waiting for the consumer 3D-Printing market to take-off, which we assume will happen one day.
We explained how to create a Business Strategy to the founder and his team, and this is what they achieved:
- They created a new 3D-Marketing service to sell to B2B clients. This was aimed at helping them support marketing campaigns via 3D-Printing elements.
- In addition, they created specific 3D-Printing services for different industries, for example, the insurance sector or for the health industry with the purpose of training health professionals using simulated organs printed in 3D.
- They are currently making money selling these solutions, which can then be invested in the 3D-Printing platform in the hope that the expected explosion of this technology within the domestic market, actually happens.
- However, we must mention that they had a certain amount of difficulty due to their lack of knowledge in closing B2B sales. We also resolved this problem for them via our B2B Sales Blueprint training.
If, like these start-ups, you are interested in learning about how to formulate a Business Strategy, click here:
If, on the other hand, you would like to know more about our B2B Sales Blueprint, click here: