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For a More Profitable Business Model Add Complementary Partners for Achieving a Perfect Result

Feb 10, 2008
To be successful, you need to continually improve your business model. Step one is to understand what your customers, users, and beneficiaries really want and need. Step two is to focus in on those customers, users, and beneficiaries who can be served with the most effectiveness at the least cost. Step three is to find partners who can increase effectiveness while reducing costs.

I saw a good example of how important it is to seek partners if you want the best business model when I attended an anniversary luncheon at the Four Seasons Hotel in Las Vegas. An anniversary cake had been ordered. Instead of bringing out a decorated cake, slices pre-cut in the kitchen were housed in a beautiful ceramic box resembling a gorgeous decorated cake.

If the chef at the Four Seasons Hotel in Las Vegas had decided to become expert in creating these faux cakes, costs would have undoubtedly soared. Artists are usually better at such tasks than chefs.

A similar specialization is possible for ice sculptures. Years ago, chefs would descend into the freezer wearing hats, mittens, scarves, and overcoats to carve a block of ice into a sculpture. Today, many restaurant supply houses offer molds for freezing water to create similar ice sculptures. The molded ice sculptures look a little artificial at first, but after they have been melting for a half hour or so, they are indistinguishable from many of the hand-carved sculptures.

Likewise, some fine restaurants don't make their own cakes. Instead, they rely on master bakers who create custom cakes to order that arrive just before the meal. In the busy restaurant kitchen, such cakes would have to be made much earlier in the day and wouldn't be nearly as fresh.

Some people take this approach to partnering to extreme limits. During a discussion of how to create a billion dollar business with only one employee, an entrepreneur described how he felt this could be done in providing broadband Internet, cable television, and Internet telephone services for businesses and apartment buildings. Every step in providing the service, from making the initial sales call to removing the service, could be handled by very capable suppliers who could be organized and trained to achieve a perfect result for this man's business model.

If such partners don't yet exist, you may want to help launch them. Many large enterprises were founded originally to serve one specialized role for a single customer who grew to enormous size. Knowing that, intelligent entrepreneurs are often willing to create a complementary partnership that enables your business or nonprofit organization to accomplish more and become larger than would otherwise occur.

Increasingly, firms are specializing in creating custom supply chains and orchestrating those supply chains for their customers. Also consider partnering with such specialists.
About the Author
Donald Mitchell is an author of seven books including Adventures of an Optimist, The 2,000 Percent Squared Solution, The 2,000 Percent Solution, The 2,000 Percent Solution Workbook, The Irresistible Growth Enterprise, and The Ultimate Competitive Advantage. Read about creating breakthroughs through 2,000 percent solutions and receive tips by e-mail by registering for free at

http://www.2000percentsolution.com .
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