What is your business really???

What is your business really???-

I have been thinking a lot about my business lately, trying to put my finger on why we are successful and what I can do to continue that. We are company that has been successful, but the world is changing, and I am not content to be tossed about on the waves of a changing world. I would much rather we make those waves and sail past those swamped by them. With this in mind, I have been examining what I remember from marketing classes as our USP, Unique Selling Proposition. Basically, why would someone a customer or perhaps a vendor willingly pay or even just tolerate another link in the supply chain and the markup that entails. Why are we valuable at a basic undeniable, and especially unbeatable level. We manufacture nothing, build nothing. So the question is, if we subcontracted for every other function, what would be left?

I know that we are not really a logistics company, though we do have warehouses, trucks and forklifts. This is a critical part of our services, but these could be contracted out, and some in our business do that already. In addition, it is something that is easily duplicated. Anyone can hire truckers, or even trucking brokers. Warehouses are for rent everywhere these days, and forklifts are easily leased. That makes it to easy to cut us out of an equation if a customer or vendor decided we weren't worth our markup, so we cannot be a logistics company.

Financially we are strong and as such we do provide a service by financing purchases on a  short term basis, and carrying inventory on a long term basis. Banks do a much better job at financing business and consumer purchases and can do it far more profitably than we do. our customers could easily pay cash and we wouldn't operate significantly different than we do now. As for inventory, manufacturers are already carrying that inventory, so what is a few more months of carrying closer to a point of use. if our customers and vendors changed what they wanted from us tomorrow in terms of financing, they would have many, better choices than those we offer, so this of little durable value to our customers and vendor partners. 

Many people in the media space have been talking about journalism as curation rather than creation. By becoming curators journalists ultimately will serve the purpose of applying experience and training to the vast sea of content that is out there and sift out that which is valuable to those unwilling to dig for themselves. I see this as a part of what we do as retailers and distributors. We bring our experience in the trade, and with our current and past customers to bare on the vast monolith of products and decide which hold value. We bring value by helping our customers make better decisions and by freeing their time to provide value to their customers in the way they are best suited. This is something that only we can do, since ultimately experience can not be contracted out or bought.

Consulting is another service that we provide. By bringing our experience to our customers service we add value to our relationship. Many of our customers are very good at there respective trades, but may lack the right business skills to grow there businesses as quickly as they might like. We can and do offer those skills in the form of informal advice. Maybe by expanding and i some way formalizing this service, we could add an additional value tour our USP. In many ways this blog is a part of that effort, an effort to add value to the industry and ultimately to our clients. 

Many web 2.0 businesses have realized what it is that they really do. Google doesn't really provide search results, email clients, and document software. It provides marketers with data and with an audience. Google has realized this and will invest in any asset or venture that furthers it. In many ways my business is the same. Ultimately our business is the relationship with the builder, subcontractor or whatever customer we are serving. This relationship is funded by the sales of materials, but we will invest in a manner that increases those sales. 

So, consider what you really do, and what your value is. Are you doing something that is unreplicable, or something that is easy to steal and maybe do better? What can you eliminate without eliminating value, and what can you do to add value to your clients and partners? Ultimately what makes you worth your clients time, money and effort? The answer to that question is what you really do. Don't ever forget it, and frame every business decision in that light. Then you can be successful at what your business really is.