Business Design Tools - Solutions to Customers Pains

Business Design Tools

The previous discussion on this subject was on the top: "Business Design Series - Design Methodology | Design Mindset | Design Tools."

There are so many business design tools you can use in design but they all depend on the type of challenge you are facing in your business.

They are so much that I can't even highlight them all here during this posting. But as you engage yourself here on this platform I might likely discuss them. But for the purpose of this posting I will mention and discuss three (3) of them.

 Pestel Analysis:

Is a business design tool used to monitor the macro environment or external factors affecting your business - This tool is for those looking forward to launch their business.

These external factors are:

  • Political factors
  • Economic factors
  • Social factors
  • Technological factors
  • Environmental factors
  • Legal factors

 

Political Factors:

These include; government policies, tax laws etc.

Economic Factors:

This factor has to do with the spending power of customers based on their disposable income. For example: you cannot go to a rural area to sell gold wrist watches. You should be rest assured that your target audiences aren’t there.

Social Factors:

This has to do with potential customers’ beliefs and traditions. For example: selling of suit in the north may not be profitable because they prefer wearing Jalabia and their native clothes.

Another example, from research more young people buy online than the old ones. Consider this factor when trying to sell online.

Technological Factors:

New ways of production, distribution and new trends are evolving in your industry, because the world is dynamic. Please avoid doing things in an old fashion way. Make use of technologies.

Environmental Factors:

Basically, it is all about how the physical environment affects us e.g. Environment pollution, climate change, etc. These factors have the capability to affect our businesses positively or negatively. For instance bad weather can affect farming and outdoor activities and businesses.

Legal Factors:

This has to do with customer rights and laws. Legal factors needed to trade outside of the country. You are expected to study all those factors before launching your business in any geographical area.

 

Let's look at the next tool

Top down and bottom up business opportunity estimation:

The top down analysis: This is calculated by determining the total market then estimating your share in the market. For example: you can say; “if I have 5% of the market in my area I will sell 5000 watches.”

The bottom up analysis: This is calculated by estimating potential sales in other to determine the total sales figure. Here you do a full market research. E.g.

  • Where your products are typically sold?
  • How many people sell your products and services?
  • How many retailers are willing to stock your products?
  • How many of your type of products have they sold over the years?

 

Moving over to the next tool...

Important notice:

In business do not be generalists at least as a startup. Let people know you for one thing even though you have knowledge of other things. However, there are still ways of letting people know other things you do.

You may bring it up while having a one-on-one conversation with a customer. Be known for something!

Every brand or business owner should have a business statement of what goals they help people achieve.

The next business design tool will be dicussed based on this sub-topic: "How to cash out from your customers pain points and challenges"

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