It’s often been said that success leaves clues, and quite rightfully so too because it really does. That, of course, rings truest in the world of business, which is why some of the biggest lending institutions like banks have certain criteria they follow when determining whether or not to grant a business loan. What happens when you go really big though and look towards some of the world’s biggest multinational companies for some inspiration on economic models you can scale down and tailor to the running of your business operations?

In the spotlight this time around is the internal-growth business model, as practiced from the point of view multi-discipline companies. So we’re looking at how a company such as Microsoft, for example, wouldn’t use open source programming languages like PHP to create end-user solutions, but would rather create its very own programming language like ASP.net, which makes for an extra revenue source.

How can you apply the internal-growth model to your own business to increase revenue? 

Taking care of the basics first

There is no doubt about the fact that you went into a particular field or market based on some value you can offer through your business and make a profit out of, so those core offerings should be your first focus. If you’re running a digital marketing agency, for instance, make sure your core products and services offerings are solid and competitive, accounting for your primary income source, of course. 

Identifying business expense channels

Now comes somewhat of a supply-chain x-ray exercise which could very well require you to expand on your existing staff to implement effectively, or designate someone from each department within your organization too.

It’s as simple as identifying every single channel through which the business spends money, so you identify your overheads, which could include the likes of renting office space, ICT infrastructure and associated services, raw materials sources, distribution costs, if any, web hosting, core operations software licensing, etc. 

Taking over the production and sourcing of identified business expense channels

Now comes the delivery of the payload, which entails taking over as many of the production and sourcing channels contributing to the business’s expenses you have identified as possible. For something like our digital marketing agency, this would be much easier to achieve, simply because of the existence of many white-label services available which are often used as end-client services in cases such those.

Considering your ICT infrastructure, for example, you can make use of an app to make connections online. Callmart may effectively become your own service provider enabling your customers to easily call you. In the process you would be generating money as well, providing you an additional revenue stream to replace what might have previously been a major business expense.

That’s just one example. The same principle can be applied to pretty much all other business expense channels, such as taking out a reseller web hosting service with which you can host your own website(s) and also earn extra revenue hosting the sites of other people and businesses on your reseller plan.

If it can be white-labeled, then that’s exactly what should be done, much like how in our Microsoft example, the company creates an entire division to come up with an internal version of any product or service which would otherwise be generating an outside entity a lot of money from the local economy.

 

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