As at the time, I am writing this article, the naira is now 414 to 1 dollar with predictions of further decline.
It therefore boils down to how business can keep operations alive even with the present economy. A lot of startup business are closed down and terminated in their prime for the same reason.
In this article, I am going to show you to weather through the poor economy climate and still have your business soar high. It’s called Value Chain Development in business parlance. I simply call it Income Channel Development for easy understanding.
The idea of developing your value chain is to reduce the impact of inflation on your business by minimizing your expenses and maximizing your income through the addition of zero cost services to your business.
What’s Value Chain Development About?
Think about your business for some minutes and ask yourself “What can I include in my business that would generate additional income without costing me anything. I am not referring to a adding new business to what you currently do. I am talking of services you can easily include with the resources you already have. The addition of these services often does not carry any financial risk, so no fear of what if it does not generate returns.
For example if you run a restaurant. Your major income channel is from your eat-in customers. Developing your value chain is to find more ways to create more alternative income channels. So you can decide to include event catering services. That way you have improved your value chain from having just a 1 income channel (eat-in customers) to a value chain of 2 income channel (eat-in customers and catering services). Adding family catering whereby people can call to order for a family size pot of freshly prepared soup of their choice as another income channel further develops your business value chain to a 3 income channel one and so on.
See diagram below depicting 3 different Restaurant Businesses.
You would agree with me that Biz C is more likely to survive difficult economic conditions than Biz A or B. Also note that the addition of these extra services does not require any extra capital from the Restaurant other than the creative decision to begin those services.
If you run a boutique business, rather than just relying on your walk-in customers alone, you can always include Wardrobe Management and Personal Styling services to it. None of which would cost you extra-cash to set up.
No matter your line of business, there is always an extra value you can include to boost your income channels and I am willing to help you discover them if you are having challenges discovering them yourself. Just mail me a description of what your business entails and together, we come up with more ways to improve your value chain.