Having a vision is vital to a business. It is a way of motivating people and helps in communicating where the company will be in the near future. Most of us are familiar with one type of vision, the corporate vision, the other, not much. Here I will discuss the 2 and attempt to make a clear distinction between the two. Note though that one is not better than the other; both works together.
Vision in the context of business is defined as where the company wants to be in the future or how it sees itself in the future. This is how vision is defined in books and in schools. Also taught is how a vision statement starts: to be the number 1, to be the best or to be the leading company. Let us call this type of vision, corporate vision. To help the company arrive at a corporate vision, a study of the external and internal environment is done. An example of a corporate vision is that of Microsoft, which states: “A microcomputer on every desk and in every home running Microsoft software.”
However, there is a lesser known or unamed type of vision that I call founder’s vision. This type of vision comes from the intuition of the founder, it is some sort of an aha moment in the sense that the founder sees where the future is heading regardless of their skills or resources. Intuition is a sudden understanding of a situation for no apparent reason. In short, the answer suddenly comes.
Let’s go back to Microsoft for the example of the founder’s vision. Bill Gates & Paul Allen founded Microsoft in the 70’s. Their knowledge in computers started by learning how to program their school’s minicomputer. Before formally starting Microsoft that we know today, the partners tried selling their program they wrote called Traf-o-Data, a program that counts traffic. The company had little to no success with this product. They went their separate ways as they entered college. Allen went to school in another state and Gates in Harvard. It would be hard for them to continue what they’re doing if they are from from on another. To continue their venture, Allen dropped out of college to work for Honeywell, a computer company in Boston, where the school of Gates is. Allen now lives near Bill Gates.
One day, Allen was walking on his way to Gates’ dorm and on the newsstand, he saw a magazine, Popular Mechanics. What he saw on the cover brought him excitement. Excited about what he saw on the cover, he rushed to Gates and brought Gates to the exact newsstand to see the magazine’s cover and validate what his excitement. On the magazine’s cover is Altair Computer from a company in New Mexico called MITS. The computer was small enough to fit on a desk unlike those available on the market then. When Gates saw it, panic set in and said, “oh no! It is happening without us. People are going to write real software for this chip!” That was Gates and Allen’s founders’ vision. So they went on and seized the opportunity.
A founder’s vision has the following:
The sudden understanding of the future.
It was neither clear nor concrete yet a “vehicle to a reward” appeared.
Seeing a connection between past and future.
Founder’s Vision does not come out of studying the environment though it helps. In the Gates and Allen example, both had an experience in the field of computer technology that gave them a feel of what the turning point will be, and when they saw the magazine, they knew the turning point had arrived, hence the founder’s vision. To further explain, having founder’s vision is like what Isaac Newton said in 1675: “If I have seen further it is by standing on the shoulders of Giants.” One needs the help of one’s past experiences and the information of those that came before to see clearly what is ahead.
So, here are 2 types of vision, corporate vision and founder’s vision. The corporate vision requires a study of the environment in order to predict the future outcome of the venture, while the founder’s vision is sudden and appears into our awareness because of the information we have that helps us see what lies ahead.
In the past few years, innovation has become a business buzzword. Simply put, innovation is the process of coming up with something new and useful. The main difference between innovation and invention is the customer acceptance of the product and service. In invention, the goal is newness while in innovation, usefulness.
Innovation has 2 kinds: incremental and disruptive innovation. Incremental is slow development just like how cellphones have developed over the years. At first, it only has 2 major features: call and sms. As years went by, it added a camera, internet, then became a small computer to be used as a work station. While disruptive is behavior-changing. Disruptive happens when there is a new technology involved; such is the case of the Internet. When the Internet came, it paved way for faster and more efficient communication. It changed how we do banking and commerce.
In my definition of innovation there are 3 important words: process, useful and new. This is the lens by which we are going to approach this article.
Process. Every successful innovation goes through research to find areas where innovation can happen. Also in the process is synergizing the creativity and energy of the individuals within the organization.
New. Every successful innovation must be an improvement therefore it has to be new. New can be the market or the companies process.
Useful. There has to be mass acceptance in order for the innovation to be successful.
Innovation can be applied both in small or big businesses.
An example of a small business innovation is that of what some Ramen bars did to their products: they turned their products into ready to cook frozen goods. That is an example of innovation because they offered a different experience to the customers. They were also able to reach a different market by partnering with distributors and logistics companies.
For large companies, what comes to my mind is that of Cebu Pacific. Before they came to the market PAL was dominating the Filipino market but Cebu Pac’s fare innovation made them a serious threat to PAL. Because of their innovation, more Filipinos are able to fly and experience going to other countries.
Innovation goes beyond creativity and design; it is a careful study, and research into target customers, so that something new can be offered.
A business model is one of the important concepts a person in business must know. Simply put, a business model tells us what a business does and how it makes money. Another way to put it is it’s the logic of the business.
According to an MIT paper, there are 4 basic business models:
Creator. A creator buys the components from suppliers and turns it into finished goods to be sold.
Distributor. A distributor is someone who buys finished goods and resells, in short, a trader.
Landlord. A landlord may own or not own an asset and sells the right to use for a specific amount of time.
Broker. A broker is someone who facilitates sales by matching buyers and sellers.
It is important to have a clear business model as this helps owners and employees understand how the business operates and clear understanding of operations lead to rational decision making at it considers the logic behind the business.
In order to create a business model, there has to be an understanding of these factors:
What the company does
How do they make money
Who gives them the money
However, to get a clear business model the entrepreneur must answer this:
Online selling this pandemic is on the rise. This is because of several factors: efficient logistics, online payment system, people are at home and a new needs brought by the pandemic.
In the last few months there was also a rise in new Facebook groups and stars. 2 of them is homebuddies and Ninong Ry. These groups and personalities help entertain people and promote consumerism, which is good for the economy.
Going back to effective online selling, what could be the different way you can do to close more sale?
There has to be a product need. This one is quite obvious. Your product is something that people would want to buy. In the last few months, home office furniture saw an increase in sales. Reason is the work and study from home. Finding your product is not rocket science, you just need to start with one and learn as you go along.
You need to look good. Your page, photos and descriptions need to be appealing to your target audience. It has to attract attention. Having said, you need to have a little background in branding and design. He is a little tip. Make sure the photos or videos are clear. Use a consistent color and keep it to 3 or less.
Focus on a niche market. This is what is good with online selling; you can target a specific audience. You just need to be clear on what you want to sell and the benefit you are offering. One example is mid-century Manila. They offer vintage furniture from the mid-century modern era. They have a small market but the market is a paying market.
Make purchasing easy. Check your payment options. Since people are going out less, take advantage of payment apps like Gcash or Dragon Pay. Also, be sure to deliver the items right away.
These are 4 basic tips that will help you sell more. Of course, for this to be effective, it has to be done consistently.