LIFE OF BUSINESS - Knowledge Bar

Why Invest in Property

Wed, 16 Oct 2024 16:19:38 +1030

Why Invest in Property !

Property Investment Pros & Cons

Pros

Capital growth: Historically, property values have shown an average annual capital growth of around 7% in Australia. The demand vs supply dynamic in the market plays a significant role in driving the growth.
Cash flow through rental income and expense management: Targeting a minimum 5.5% rental yields property to generate positive gearing which can provide a steady stream of income.
Accelerated growth: Manufacture short-term capital growth through minor renovation or improvement or value-adding development or buying below its intrinsic value.
Leverage from borrowing capacity: By leveraging investors' borrowing capacity, investors can amplify the potential returns on their investment. For example, if an investor puts down a 20% deposit and borrows the remaining 80% of the property's value, any increase in the property's value will be magnified on their initial investment. If the property value increases by 10%, the investor's equity will grow by 50% (10% of the property's value divided by the investor's 20% deposit). This leverage can significantly enhance the overall returns on the investment.
Increase the value by Inflation: Property values tend to increase over time due to inflation. Investing in property can serve as a hedge against inflation, as the value of the property typically keeps pace with or exceeds the rate of inflation.
Maximise return by Compound Interest: Compound interest refers to the interest earned on both the initial investment and any accumulated interest over time. Compound interest can work in your favour when the growth of your initial investment generates additional returns over time. The longer you hold the property, the more pronounced the effects of compound interest become.
Unique Value Proposition: Properties with a twist that offer something unique and different or have the potential for future development or improvement can attract higher demand and command a premium in the market.
Tax benefits: Strategic tax deduction such as tax-deductible repairing or renovation, depreciation or negative gearing, loan interest deduction, 50%discount on capital gains etc.
Lower risk ratio in compare with other investment options: Real estate investment is generally considered to have lower volatility and be more predictable compared to other investment options, such as the stock market. Property has a proven track record of delivering average annual growth of around 7% over the long term, providing a relatively stable and consistent return on investment.
Passive income generator: Property investment can serve as a passive income generator, especially when the rental income exceeds the property expenses (positive gearing).
Timing: Property market cycles present opportunities for investors to enter the market at the right time. By understanding market trends and investing during periods of growth or when prices are favourable, investors can maximise their potential returns in the short term.

Cons

Buying a wrong property risk: Making a poor investment decision and purchasing a property that does not generate the expected returns.
Cash flow crunch: If rental income or other sources of cash flow from the property are insufficient to cover ongoing expenses and debt obligations, property owners may experience a cash flow crunch.
High entry costs: Minimum requires $30,000 to cover all Upfront costs involved in acquiring a property
Ongoing and additional costs: including property taxes, insurance, maintenance, repairs, and management fees.
Surprises: Changes in market conditions, zoning regulations, or unexpected repairs.
Tenant problems: Late payments, property damage, or disputes which are time consuming and may require legal action in some cases.
Liquidity risk: It may take time (average 30-60 days) to sell a property and convert it into cash.
Lumpy risk: It may not be easy to sell a portion of the property or divide it into smaller units for sale.
Market risk: Economic conditions, supply and demand dynamics, and other factors can impact the value of the property, potentially resulting in a loss of investment
Interest rate risk: If interest rates rise, the cost of borrowing will increase, affecting the profitability of the investment.
Legislative risks: New tax laws or zoning regulations may affect the profitability or permitted use of a property.
Lack of diversification: The majority of an individual's wealth may be tied up in one property or a few properties
Negative gearing limits the borrowing capacity: While negative gearing can provide tax benefits, it can also limit the borrower's capacity to borrow more funds for further property investment.
Inflation rate: Reduce the purchasing power of property investors, making it more difficult to acquire or maintain properties. Also, inflation increases in the cost of construction materials, labor, and other expenses related to property investment.

The Ultimate Business Model

Wed, 06 Mar 2024 17:02:00 +1030

Unlock the Blueprint to Business Success

The Ultimate Business Model encompasses all aspects of the business on purpose to achieve the ultimate goal throughout the life of a business. Our method is about thriving, scaling, and achieving unparalleled success. This is about transforming your business into a powerhouse that's profitable, reliable, sustainable, and designed for growth.

Are you tired of hearing the same generic advice repeatedly?

Work on the Business, Not in the Business:

Work Smarter, Not Harder

Think Outside the Box

Innovate or Die

Go Agile, Think faster or Fail Fast, Fail Often

Get more customers, cut costs, increase/reduce the price

Go with a Minimum Viable Product

....

Have you encountered any of the top 5 common challenges that small businesses face in today's market?

High competition in acquiring new customers

Limited capital for reinvestment or lack of access to finance for growth or maintenance of operations.

Uncertainty about current or future market conditions, disruptions, customer needs, and evolving consumer behaviours.

Difficulty in attracting and retaining talent due to budget constraints.

Adapting to new technologies and digital transformation into operations vs facing a competitive disadvantage.

The fundamental causes of these challenges and others you may be experiencing today stem from issues with the current business model, inadequate strategic planning and execution, and failure to realise value due to limited resources or lack of capability and capacity to thrive in today's dynamic market landscape.

But How To Achieve a Successful Business Model?

Our strategy involves having 3 Business Models simultaneously, which can be merged or combined to create the ultimate business model with almost the same capital resources, capabilities, and capacity of the business.

One Active Business Model - Representing the current operational business

One Passive Investment Business Model - Safeguarding the current business model through a strategic passive investment with minimal capital and risk, offering maximum ROI ratio.

One Passive Innovative Business Model - Developing a passive innovative business model through a strategic data-driven research to validate high-value business potentials.

In our business development solution, SMBs (Small to Medium Businesses) must target and work toward the Ultimate Business Model that covers all aspects of the business in a strategic and systematic way to survive, revive and thrive and achieve the ultimate goal in their life of business.

Your First Step to Transformation: Book a Call , where practical, innovative strategies come to life. This isn't about temporary fixes. It's about laying the foundation for a business model that will carry you into the future with confidence.

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Strategic and Systematic Growth

Wed, 06 Mar 2024 17:02:00 +1030

Strategic & Systematic Growth

LIFE OF BUSINESS delivers specialised consulting and executive services devoted to business growth and development for Micro (<$2m) to Small Businesses ($2m-$10m). We've built all Business Development Capabilities You need to Grow Your Business On Purpose.

We view ourselves as a partner to our clients, working hand in hand from start to finish, with a firm belief that our success is directly tied to their gain in their business growth journey.

Harness our business development capabilities & capacities in order to augment your business growth via our distinct solid realistic Parent-Child Oriented Business Development strategy, which incorporates the latest validated methods and technologies, as well as empirical industry & research-driven market insights to fulfill your goals.

Recognising the cashflow challenges and investment hurdles of SMBs, we provide fix custom-priced services ranging from $15K to $55K with no upfront cost and a timeline of 3 months to 1 year to enable your business to succeed in a systematic way not by chance.

Our mission is to innovate a business model alongside of your existing one by creating innovative products, services or systems that fulfil the pinpoint market needs identified through in-depth market research.

Many micro to small businesses are survival enterprises, operating out of necessity rather than with intent to grow. The survival rate of businesses over a 4-year period FY15-19 indicates that larger businesses generally survive for longer period compared to micro businesses (inc sole traders). In fact, sole traders have the lowest survivable rate at 60% which is less than the average survival rate of 65% and hasn't changed from the last period FY 14-18 (ABS 8165.0, Table 15, Feb20).

Data from the BLS shows that approximately 20% of new businesses fail during the first two years of being open, 45% during the first five years, and 65% during the first 10 years. Only 25% of new businesses make it to 15 years or more. Only 2% businesses start because of a gap in the market.

However, there was a large net movement of surviving businesses into the upper turnover size ranges, with businesses having a turnover at or above $200,000 increasing by 61,627 collectively (ABS, Jun 22).

This demonstrates the inevitability of micro businesses growing into small businesses in order to establish a reliable, sustainable, profitable, and scalable business that can thrive for years to come and leave a lasting legacy.

On other hand, Micro and Small Businesses are losing their market share in excessive competition in any segment. More competitors – less market share. Competitors bite off your clients. One of the tactics is the businesses scarify the price for competitive advantage. Businesses are pushed to the point when they are lowering the prices because the competitors are doing so, even if the product/service value is higher. In addition, the businesses think the marketing equals advertising, but most often they face with low return on marketing advertisement investment. On top of it, clients are exposed to similar products/services from different competitors and are curious to try.

Most of the current businesses growth is similar to the rectangular pulse-shaping (getting one project or work order after another one) which is not sustainable & scalable over the long run.

In overall, the fundamental question is "How a Micro or Small business supposed to achieve a strategic goal in their market and then how to maintain the achievement and grow from there with a sustainable & scalable business model that is both profitable and defendable to retain in the market for over 15 years?"

The short answer is Strategic Innovation that fulfil a market unmet need that should be aligned with a Strategic Positioning in the market over a time to have a Sustainable & Scalable business growth that is both profitable and defendable. LIFE OF BUSINESS is built as a factory model to execute the strategy for SMBs growth.

However, we believe a Business is NOT solely about financial profit, running a profitable & purpose-driven business in scale is our pathway to fulfil our potentials, pushing our boundaries and contribute to others' cause with a life purpose. The foundation of LIFE OF BUSINESS is based on Co-create right values that support life of businesses & its entrepreneurs who create & support a meaningful life for others.

The Outcomes of Busienss Development

From Business Perspective

Achieve 3x Profit within 1 year of the business development.
Built a business with >20% ROI as your wealth creation driver.
Thrive with a reliable, sustainable and scalable business model from Micro (<$2m) to Small Business ($2m-$10m) that can grow and adapt to the ever-changing market conditions.
Achieve strategic positioning for competitive advantage by repositioning the business model, and enhancing the brand's strength and reputation.
Long-term value generation and increase the business capital valuation.
Manage the risk of market disruptions and stay ahead of the competition by fostering innovation and adaptability with a proactive approach.

From Personal Perspective

Achieve freedom and flexibility that enable you to make independent decisions, control your schedule, work-life balance, innovate & adapt.
Reach your full potential, and professional growth and make the significant impact that you desire.
The sense of accomplishment and professional satisfaction of achieving meaningful goals that make a difference that align with your vision.
The sense of fulfilment and personal satisfaction that comes from creating job opportunities and contributing to financial stability for others.
The sense of personal reputation and recognition that comes from creating a successful business.
Increase wealth and achieve financial freedom & stability that come from higher income, increased valuation & higher ROI of your own business.
Leave a reliable and profitable legacy for your family or successors.

Book A Call

The Ultimate Guide of Transforming a Micro Business to a Small Business

Tue, 25 Jul 2023 16:26:06 +0930

Grow from a Micro Business To a Small Business On Purpose

Grow from a Micro Business ($50K - $2M Revenue or 0-4 Employees) to a Small Business ($2M - $10M Revenue or 4-20 Employees) in a systematic way.

Transitioning from a micro business to a small business can also contribute to wealth creation. As revenue and employee numbers increase, there is the potential for higher profits and scalability. This growth can lead to increased wealth, as long as the business is effectively managed, risks are mitigated, and growth opportunities are seized.

We have built a Business Factory to guide and develop your business throughout its entire business life journey. We understand the challenges faced by SMBs in today's competitive landscape. That's why we offer reliable, research-based guidance tailored to your specific market needs.

To help you build a unique value proposition that strategically positions your business for success, from start to finish.

With LIFE OF BUSINESS, you can develop a reliable, profitable, and scalable business model. We empower you to create innovative products, services, or systems that precisely fulfill the pinpoint market needs identified through our extensive market research.

Don't let uncertainty hold you back. Take control of your business journey with LIFE OF BUSINESS. Together, we'll unlock your true potential and pave the way for lasting success.

Get Started Now

The Ultimate Guide of Small Business Innovation Management

Tue, 25 Jul 2023 16:13:25 +0930

Innovate Or Die: There Is No Workaround

The Boston Consulting Group (BCG) in 2019, highlight a concerning trend of increasing complexity in the business environment, particularly for small and medium-sized enterprises (SMBs). The findings indicate that business complexity has grown 6 times over the past 6 years, while SMBs have experienced a significant increase in complicatedness, measured by structures, processes, committees, decision-making forums, and systems. An it is increasing by a factor of 35%. This complexity can have several negative consequences for SMBs:

Productivity Challenges: As the business environment becomes more complex, SMBs may struggle to streamline their operations and improve productivity. The multitude of structures and processes can introduce inefficiencies and hinder effective decision-making.ivity Challenges: As the business environment becomes more complex, SMBs may struggle to streamline their operations and improve productivity. The multitude of structures and processes can introduce inefficiencies and hinder effective decision-making.ivity Challenges: As the business environment becomes more complex, SMBs may struggle to streamline their operations and improve productivity. The multitude of structures and processes can introduce inefficiencies and hinder effective decision-making.

Innovation Bottlenecks: The complicatedness can make it difficult for SMBs to foster innovation within their workforce. When employees are burdened with excessive layers of bureaucracy and the lack of decision-making understanding of innovative approach, it can stifle creativity and slow down the implementation of new ideas.

Workforce Disengagement: The business labyrinth created by increased complicatedness can disengage and demotivate the workforce. With excessive structures and processes, employees may feel a lack of autonomy and empowerment, leading to decreased job satisfaction and lower levels of engagement.

To address these challenges, it is important for SMB leaders to recognise the impact of the increasing complexity and take steps to simplify and streamline their business. This may involve reevaluating and simplifying their roles, processes and systems, empowering employees to make decisions, and fostering a culture of innovation and continuous improvement. Additionally, leveraging technology and digital tools can help automate routine tasks, improve communication, and increase efficiency within SMBs.

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Are you struggling with growth in today's complex business environment?

Tue, 18 Jul 2023 16:00:38 +0930

How to Manage Complexity without Getting Complicated

Does your business manage complexity by making things more complicated?

If so, you are not alone. The Boston Consulting Group (BCG) in 2019, highlight a concerning trend of increasing complexity in the business environment, particularly for small and medium-sized enterprises (SMBs). The findings indicate that business complexity has grown 6 times over the past 6 years, while SMBs have experienced a significant increase in complicatedness, measured by structures, processes, committees, decision-making forums, and systems. An it is increasing by a factor of 35%. This complexity can have several negative consequences for SMBs:

• Productivity Challenges: As the business environment becomes more complex, SMBs may struggle to streamline their operations and improve productivity. The multitude of structures and processes can introduce inefficiencies and hinder effective decision-making.

• Innovation Bottlenecks: The complicatedness can make it difficult for SMBs to foster innovation within their workforce. When employees are burdened with excessive layers of bureaucracy and the lack of decision-making understanding of innovative approach, it can stifle creativity and slow down the implementation of new ideas.

• Workforce Disengagement: The business labyrinth created by increased complicatedness can disengage and demotivate the workforce. With excessive structures and processes, employees may feel a lack of autonomy and empowerment, leading to decreased job satisfaction and lower levels of engagement.

LIFE OF BUSINESS specialises in navigating the complex challenges that come with growth, that's why we have built a factory to nail it down and we have a proven track record of success. Let us take the burden off your shoulders and help you achieve your business goals.

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The Breakthrough Ideas are the Key in Long Term Success.

Sat, 05 Jun 2021 12:22:41 +0930

One of the common problems in innovation is "Not thinking Long Term" about Innovation Strategy focusing on breakthrough ideas. Most businesses tend to focus more on short term goals & results than thinking from a long term perspective of achieving something different but right. Studies show that around 60 to 80% of new products fail due to lack of innovation strategy as a basis for decision-making and lack of market orientation. Breakthrough innovation is complex enough, with a high level of uncertainty to come by. However, the one who has achieved breakthrough innovation is one who is leading us.

Today's, thanks to breakthrough technologies, we have more new ways to connect, analysis, synthesis and find different minds across the globe to complete and mature our hunches and thoughts that we are working on to build and validate our ideas. The historic increase in connectivity aligns with our ability to reach out and exchange our ideas with others have allowed us to get to know other people hunches and combine them with our ideas to develop our ideas into new mature ideas.

There is a reoccurring pattern of a slow hunch that causes breakthrough ideas to come from the back of people minds. It takes significant time sometimes years or decades when an idea becomes mature enough to be successful for the owner. The actual viable ideas come from the collision of small fragmented hunches that they form something bigger than themselves. That's why we should make our mind collision to other minds to form another half of missing ideas in the form of conversation, experimental collaboration, prototyping development, co-thinking and co-creation overtime. Breakthrough ideas need time to incubate and grow organically, and whether or not, it is a complex process.

Thought in the form of a hunch is a single deep thinking process that often happens in a wonderful, illuminating moment but the thought is a major complex network of neurons firing in sync with each other inside our brain on the most elemental level. The outside network forms mimic a lot of the network patterns of the internal world of a human brain.

LIFE OF THOUGHT Innovation Factory

We need a system to allow hunches to come together to form a big viable idea and then identifying a minimum viable idea to start the experiment process. The main challenges are How to create an environment that allows hunches to have long half-life to incubate and collide with other minds in today's workplace or virtual world? And also, How to enable our hunches and thoughts get connected with other people thoughts to form a new mature viable idea that is relevant to a need, novel and adaptableLIFE OF THOUGHT was born out of the primary human engine of creativity and innovation in 2003 during years of incremental development in an unstructured way. Now LIFE OF THOUGHT is a front-end virtual innovation factory to create, develop and enhance breakthrough ideas in Co-Thinking and Co-Creation systematic way for those who need to invent or innovate new product, service or solve a complex problem.

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The Ultimate Guide of Growing a Small Business

Sat, 05 Jun 2021 12:22:25 +0930

Shape a Sustainable & Scalable Business with Three Dots …

Strategy. Innovation. Marketing!

Set Your Business Position Right in the Market Mind to Achieve a Sustainable and Scalable Growth through a Unique Value Proposition.

Micro and Small Businesses are losing their market share in excessive competition in any segment. More competitors – less market share. Competitors bite off your clients. One of the tactics is the businesses scarify the price for competitive advantage. Businesses are pushed to the point when they are lowering the prices because the competitors are doing so, even if the product/service value is higher. In addition, the businesses think the marketing equals advertising, but most often they face with low return on marketing advertisement investment. On top of it, clients are exposed to similar products/services from different competitors and are curious to try.

Most of the current businesses growth is similar to the rectangular pulse-shaping (getting one project or work order after another one) which is not sustainable & Scalable over the long run.

However, the fundamental question is How are Micro or Small businesses supposed to achieve a strategic goal in their market and then how to maintain the achievement and grow from there for a sustainable & Scalable business model that is both profitable and defendable to retain a profitable position in the market?

The short answer can be a Strategic Innovation that should be aligned with a Strategic Positioning in the market over a time to have a Sustainable & Scalable business growth that is both profitable and defendable.

Strategy, Innovation, Marketing & Operation are core members of a small business family. The businesses are mostly good at technical execution but mostly are inadequate or behind Strategy, Innovation & Marketing elements such as having a Unique Value Proposition for each target audience segment to deliver it as a promise, not a slogan.

The Four Core Business Family Members are:
Operation delivers the Unique Value Proposition for each customer segment in a Value Chain.
Innovation creates the Unique Value Proposition for each customer segment.
Marketing aligns the market demand of each customer segment with the Unique Value Proposition.
Strategy creates efficiency and effectiveness by organising activities and aligning decisions to deliver the Unique Value Proposition in the market segment to generate superior economic value in a market in a form of
Strategy as Plan (Analysis) - A set of organised and objective actions toward a desirable outcome. Critical Thinking, Analytical, logical, Linear, Rational driven, Preserve and improve the existing business model, product or service. key tools are SWOT, PESTEL, Value Chain, Five-Factors
Strategy as Innovation (Synthesis) - Strategic Innovation is a unique change with a scalable impact on the business on purpose. Creative Thinking, Creative & disruptive, nonlinear, Passion driven, develop & experiment a new business model, product or service. Key tools are Business model canvas, Strategic Innovation Canvas, the Innovation Pyramid, Disruptive Innovation, The Play-to-Win Strategy Canvas,…
Strategy as Pattern (Past Actions) - Strategy can emerge from a pattern in a stream of past business actions, decisions and behaviours. Rather than being an intentional choice, a consistent and successful way of doing business can develop into a strategy. Key tools are business achievement timeline, lesson-learned, 5 Ps, patterns of team success & failures, USP Analysis and Core Competence Analysis.
Strategy as Perspective (Internal Perception) - Strategic Thinking, the strategy is formulated as per the business culture, and the way business views itself, and it's about the ‘character’ of the business to the individuals. As patterns of behaviour can emerge as strategy, patterns of thinking will shape a business' perspective and the things that it can do well. Strategy as a perspective is not just of a chosen position but of an ingrained way of perceiving the world and building internal business ideology to create a culture to respond to external demands. The business driver is internal business people mindset in taking an approach in solving problems, identify opportunities, encourages risk-taking and innovation, designing the business model and leading the operation. Key tools are the Cultural Web, Deal and Kennedy's Cultural Model, and the Congruence Model.
Strategy as Position (External Perception) - Human Centred Thinking, defines the overall position of the business in the market. Strategic positioning establishes a focus of delivering value direction that resonates with your customers. It creates a clear position of a unique value that is different but right in the customer and consumer's minds. That's how you decide to position yourself in the marketplace and it helps you develop a sustainable competitive advantage. Key tools are PEST Analysis, Porter's Diamond, and Porter's Five Forces.

My new view of the business strategy about Marketing and Innovation is the "Strategy as Position" (Strategic Positioning).

Strategy as Position" in Who, Why, What, How, When and Where.

Who: Business Owners with businesses in thrive phase.

Why:

Strategic Positioning outcome is about to Make a sustainable and scalable business that is profitable and defendable in the market segment in contract to Market Positioning which is more about meeting a Market Position target for competitive advantage with no/weak plan to make it sustainable and scalable plan over time.

What:

“Positioning is not what you do to a product. Positioning is what you do to the mind of the prospect.” - Jack Trout and Al Ries, authors of “Positioning, The Battle For Your Mind.”
Positioning is all about creating a clear and compelling position in your customer and consumer mind, so they chose your product/service for their needs.
"Strategy should reflect a distinctive value chain that configures all key business processes and operations (operations, HRM, marketing, service delivery, etc.) in a unique way that is difficult for competitors to imitate (Porter, 2001)."

A. Strategic Positioning Vs Market Positioning

A market position (also called a “Competitive Advantage”) can be achieved through differentiated but relevant values and a distinctive operational model with Unfair competitive advantage to deliver the values (value chain) to the target market segment. However, strategic positioning is a process to continually adjust the perception of your business’s products and services in the minds of your target customers and consumers.

B. Key Strategic positioning Elements:

Unique Value Proposition: The first and critical step to strategically position your business is to develop a Unique Value proposition through Innovation to set your business position different but relevant to customer's demands. By offering differentiated, relevant & distinctive value to customer's needs.

Customers & Consumer Decision making drivers:

Price Leadership: A premium price or lower costs for the business to stay in the market. Whether to have a lower price (not lower costs) below competitors or increasing our product/service value perception in the mind of customers and consumers. By lowering the price continually, it becomes a challenge to stay in a profitable and defensible position in a marketplace over the long run.
Market Segments: Classify customers and split the market into segments that mostly have common characteristics that make them approachable through the same value chain.
Target markets: Select a market segment that the business delivers the Unique Value Proposition as a promise.

C. Key Strategic positioning Principles:

Focus on Consumer perception, not just from the customer's point of view.
Adjusting the business market positioning accordingly as new information becomes available.
Linking the Strategy as Position with the business operations to deliver the Unique Value Proposition as a promise.

How:

How to find and protect a “profitable” but “defensible” position in a marketplace?

Strategic Positioning Methods, Tools, Techniques;

Value Proposition: Value Proposition Evaluation Model delivers the right value to the customer in coherence with the business capabilities.
- MORE-FOR-MORE,
- MORE-FOR-THE-SAME,
- THE-SAME-FOR-LESS,
- LESS-FOR-LESS
- LESS-FOR-MORE
The 6 step STP model outlines the process for establishing your positioning.
The Ansof model: The ANSOF model is a tool that demonstrates how to position your business in four given scenarios.
- Marketing Development
- Diversification
- Marketing Penetration
- Product Development
Competitive Advantage Model
- Differentiation
- Cost leadership
- CHOOSING THE RIGHT COMPETITIVE ADVANTAGES
Unique Selling Point: The types of differentiation must be:
- Important: the difference delivers high value to target buyers
- Distinctive: Competitors do not offer the difference
- Superior: it is a better way of how customers currently operate
- Communicable: is it visible and understandable by customers
- Pre-emptive: cannot be copied easily
- Affordable: buyer can afford to pay the increased costs
- Profitable: they can be implemented profitably
Customer Journey Roadmap
Polarising Affect: A polarising effect is a tool that you use to plan how you want to tap into the emotional state and rational state of your customers
Position Document:
- A Positioning statement
- Positioning messages for target audiences
- Positioning for target audience via their purchasing cycle

When and Where: Usage Consideration of Strategy as Position

Pro:
- It creates a clear position in the customer’s mind to increase the existing value of business products and services for a premium price.
- It mostly benefits businesses in thrive phase.
- It simplifies and drives strategy conversation to develop capabilities and manage systems to enable the strategy
- Focusing on business core capabilities toward market-oriented outcomes.
Cons:
- A positioning strategy is about being different, relevant, but not necessarily better. The focus can be gradually away from continuous improvement to deliver a better product or service to satisfy dynamic customer demands or create a new set of demands without any explicit customer's needs.
- Without the right capabilities and system, the strategy is just an idea.
- Simply creating a clear position may not make you more money, it requires an effective plan and iterative process to implement it across your business value chain.
- Not for businesses in survival and revival phases.
- It is an iterative, lengthy and more likely expensive process to develop.
- Not for Me-Too type of businesses.

Get Started Now

References:

Mintzberg's 5 Ps of Strategy

Terms reproduced from “The Strategy Concept 1: Five Ps For Strategy” by Henry Mintzberg in California Management Review, Vol. 30, 1, Fall 1987, pp. 11-24 © 1987 by the Regents of the University of California. Reprinted by permission of the University of California Press.

Sun Wu’s Strategy for Executives.

Magretta, Joan. Understanding Michael Porter: The Essential Guide to Competition and Strategy. Harvard Business Review Press. Kindle Edition.

Strategic Positioning, Institute for Strategic Competitiveness.

https://www.isc.hbs.edu/strategy/business-strategy/Pages/strategic-positioning.aspx

Hooley, Graham; Piercy, Nigel; Nicoulaud, Brigitte; Rudd, John M. Marketing Strategy and Competitive Positioning. 6th edition (Jan 2018). Pearson.

Dawar, Niraj; Bagga, Charan K. A Better Way to Map Brand Strategy. Harvard Business Review. June 2015.

https://hbr.org/2015/06/a-better-way-to-map-brand-strategy

Van Mieghem, Jan A.; Allon, Gad. Operations Strategy: Principles and Practice. Second Edition. Dynamics Ideas LLC.

https://www.kellogg.northwestern.edu/faculty/vanmieghem/books.htm#ops%20strat

https://strategyforexecs.com/strategic-positioning/

https://allbusinesstoolkit.com/strategic-positioning/

https://strategyforexecs.com/strategic-positioning/

https://medium.com/swlh/positioning-5-strategies-to-stand-out-from-your-competitors-bb3ba93e4a69

Building a safety habit during Covid-19 in an Organisation

Sat, 05 Jun 2021 12:21:49 +0930

Safety Punch Card Idea

Building a safety habit during Covid-19 in organisations in 2 months.

A behaviour or action becomes a habit when it goes and stays in our subconscious mind not only be conscious about it. One of the ways to build a habit in our subconscious mind is repetition, and it can take an average of 66 days for a person to form a new habit (Atomic Habits by James Clear https://jamesclear.com, New York Times bestselling book). For example, we are changing gears in a manual car without thinking much about it. For change a behaviour, James is saying we should answer these four questions.

How can I make it obvious?
How can I make it attractive?
How can I make it easy?
How can I make it satisfying?

My Idea: Writing is more effective than speaking, and the idea responds to the above changing habit four questions.

Safety Punch Card - Building a habit of Covid-19 safety in 2 months

This is only for people who have to be physically at offices or sites. The idea comes from Clock card machine or punch clock when we arrive and leave an office. It is now "Safety Habit Recorder" for Covid-19 where everyone writes a post note on a whiteboard/office board when they arrive and leave office/site by answering 4 questions that record the start and end times of everyone Covid-19 safety Habit during a day for 2 months.

Write on post note (Your name + date + Question No + Your response to each question on a whiteboard or an office board every day.

At the start of a Day:

1. What am I going to do today to keep myself and others safe? For example, follow 1.5 distance, Telling others out loud, using a Rubberband to remind me

At the End of a Day:

2. What have I done today to stay safe?

3. How many time did I notify or remind others to stay safe?

4. What else could we do together to keep safe?

The action of an organiser of each site/office in Every day:

Take a photo of the board
Post the photo on the Workplace group every day from different sites
Reward/endorse the most useful and interesting idea or action or answer

It can start with only question 1 then and gradually adding the questions 2,3,4 over days to improve it.

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The Innovation Challenge Nailed

Sat, 05 Jun 2021 12:21:33 +0930

We all know Innovation matters, but...

The top challenge is the innovation has been a top priority and a top frustration for many organisations, businesses and leaders. According to McKinsey, 84% of global executives believe innovation is extremely important to their business survival and growth but only 6% are satisfied with their innovation performance and result. Most people would agree that the vast majority of innovations fall far short of ambitions.

One of the fundamental problems is, most of the masses of customer data companies create is structured to show correlations such as this customer looks like that one, or 68% of customers say they prefer product A to product B. While it’s great to identify patterns across the data, they don’t mean that one thing actually caused another. Also, it’s no surprise that correlation isn’t causality, we believe most managers have gone through basing decisions on correlations or leave it to a chance to innovate.

LIFE OF THOUGHT Innovation Factory Model

LIFE OF BUSINESS believes the innovation success happens in the Art & Science of Idea Transformation through mindset, strategy, practice and system together over time. Finding a novel solution comprises up to two-third of the total cost, time, and effort of new development.

However, every business has an army of potential creators and innovators at its disposal, not only its staff but customers, suppliers, partners, professional networks such as business communities, social networks such as fans and beyond especially in today's interconnected world.

LIFE OF BUSINESS is a Micro Digital Innovation Factory as a Service to enable individuals and businesses to innovate a new solution, concept, product, service, system or business model together through the Art & Science of Idea Transformation in a systematic way that can not be found anywhere else.

Maybe this is the time to think laterally and reinvent yourself and the business to do something smarter that matters the most in a systematic way.

Let's discuss to see how can we turn your challenge to an opportunity that matters the most.

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