There are some B2B suppliers who radically change the way their customers do business. Here’s eight ways a B2B company can do this. Test your company against them.
- Many successful high growth companies had disruptive solutions that changed the way their customers did business. They created advantage for market leaders, causing the rest to follow. Give your company 10 points if you already disrupt your clients’ markets, 5 if you think you could and 0 if your market is mature or commoditised.
- They found customers that were willing to be early adopters and that could be identified as potential market leaders. Famous examples are Bill Gates’ relationship with IBM that launched Microsoft and Boeing’s agreement with Pan Am that created the 747 and opened up transatlantic travel. Give yourself 5 if you have a breakthrough account, 2 if you can easily think of one and 0 if you think the idea doesn’t apply.
- They understood their customers’ business drivers and market tested their solutions. They ruthlessly qualified their customers and wasted no time on poor leads. Give yourself 5 if you think you have a disciplined approach to qualifying prospects. Note: if you don’t have a sales forecast that you review monthly and regularly meet to discuss, you probably don’t have adequate discipline. Give yourself 0 if you don’t have any sales tracking processes — it’s amazing how many companies don’t.
- They charged a price based on customer value benefits not on cost plus a margin. Give yourself 2 if you have been paid based on the success of the client, 1 if you generally get a price that is better than the competition and 0 if you’re the least cost supplier. If you don’t know… shame.
- Their available market was over £500m per year. Professional investors consider large market potential a key indicator of success. They’re not wrong. Whether you need funding or not it is still a good indicator. Give yourself 2 if the market is over £500m and 0 if it isn’t.
- They planned to go global from day one. As soon as they established a reliable business in their home territory, they used their credibility to exploit new territories. Give your self 2 if you already trade globally, 1 if it’s in you plan and 0 if it is not appropriate to go global.
- They aimed to be number one or two in their markets. Give yourself 2 if you’re revenues already position you as one or two, 1 if you know what you have to do to be one or two and 0 if the nature of you company or market means the concept doesn’t apply.
- They created a product or service that allowed them to generate revenues as soon as the company was created. Through early customer relationships they understood how to best to serve their markets. They gained first-mover advantage and locked out the competition by doing this. Give yourself 2 if you generated revenue from day one and 0 if you didn’t.
Add up the results:
- If you got more than 25 consider yourself on the way to vast riches.
- 15 to 25 and you’ve probably got a sound foundation to accelerate growth.
- Less than 15 and maybe you ought to think about doing something different.
