I?ve been involved recently with advising a client on setting up a new business. It was an interesting exercise in the art of the possible ? how to build a virtual business with almost no infrastructure or fixed costs and limitless profit potential.
Background
At the outset, the client thought in terms of renting offices, buying stock, employing staff and having to raise money to turn the vision into a reality.
As we progressed, that was proved not to be the case and the idea was brought to market much more rapidly and at much lower cost and risk than the client originally envisioned.
Potent forces
To drive the client?s idea forwards, we combined three potent forces. They were:
- Relentless focus on the customer
- Use of contractors and consultants to get things done fast
- Outsourcing everything possible
Customer focus
The client?s vision was strong. A big part of the challenge was to keep the client?s focus on customer value without the distractions of the traditional business model.
Building an almost purely virtual business took all the day-by-day implementation issues away and enabled the client to focus on how best to create and market their product.
The methods involved also had the interesting side effect of providing a lot of the capital required to start the business.
Use of contractors and consultants
Rather than employ staff full time, the client engaged a number of contractors and consultants to get design work completed, a go-to-market plan designed and implemented and set up the basic business processes required.
Each contractor or consultant was employed on day rates to deliver defined deliverables in a defined timescale. This resulted in no ongoing employment liabilities or costs ? critical for a start up business.
Outsourcing everything
With the business basics established, everything was then outsourced. This included business processes, manufacturing and distribution. Everything was delivered against contracts specifying pricing and performance based on volume.
This had the effect of moving a big chunk of the risk in a start-up company to outside specialist providers, and also effectively provided working capital to get started.
The result?
It worked. The client?s vision was brought to market rapidly with minimal investment.
The consequences for traditional businesses are frightening. Their very size and scale makes them inflexible and unable to react in the timescales they are being forced into.
Find out more
Want to find out more about how this could help you? Please register will my ?Sell More Club? to download the 10 page white paper ?The rise of the virtual corporation? describing how you could set up your virtual business.
Here?s what to do next
If you?re interested in how this could help you, or feel I may be able to help you with some of the challenges you?re facing, please get in touch for an informal discussion.
There?s no commitment, we?ll just discuss your situation to see if working together might be a good fit. ?Contact me?now.
Best regards
Source: http://www.salessuccessandmore.com/the-rise-of-the-virtual-business
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