When identifying your client and assessing their challenges, expand your scope out to the wider economic situation. Both locally, and globally, there are seismic shifts occuring around you which could open doors for your start-up or render it dead in the water from the moment you launch. Take, for example, the effects of both Brexit and Coronavirus on the global supply chain.
The cost of living is continuing to climb, with prices in the UK rising at their fastest rate for 30 years. Factors including supply chain issues, the war in Ukraine, recruitment challenges and increased wages have come together to create a perfect storm of rising costs.
Here are five things which have been particularly affected:
- Petrol and Diesel
- Energy Bills
- Furniture
- Oils and Fats
- Milk and cheese
Bearing this in mind, is your product likely to be unaffordable to those you seek to serve or will it be useful to them? A great business, in the midst of an economic crisis is one which could provide an alternative to the above items:
- Biofuels or alternative fuel options
- Low-Energy household technologies
- Lower cost furniture - second hand or upcycled homewares
- Oil alternatives
- Non-dairy/replacement dairy products
The list is endless. When you see an economic-problem present itself, simply reverse it and consider the solution.
For example. The industry I work in (Modular Buildings) is heavily reliant upon running a busy and fully functional joinery factory with energy guzzling machinery for the processing of sheet materials, insulation, steel and timber. All of the overheads and material costs have all shot up in price, rendering the original business model ineffective, and, at worst, unprofitable. The model was profitable five years ago but, the global material supply chain is so damaged that to continue on in the old "business as usual" fasion would be business suicide. Those in industry who import goods are hit hardest, since the shipping prices have skyrocketed and importing is more of a liability than the cost-saving exercise it was once deemed.
So, transitioning to a more sustainable, locally sourced cost-effective material (earth, straw, hemp and lime), combined with moving away from an energy-intensive factory to more traditional hand-built work on site is the most obvious solution.
Even established businesses need to check-in on the state of the global economic situation at a regular basis and be prepared to pivot when time dictates this is necessary.