Friday, March 2nd, 2018
Posted by Brittany Diamondunder:
We Start with Diversity
Sometimes it takes just a little bit of imagination when scaling up a business. Some companies use an aggressive approach while others use a conservative, cautious strategy when making critical business decisions to enter a market. No formula is perfect. However, leadership at Decisions Oriented (DO) has grown an appreciation for one core concept in business and finance: diversity.
We can all agree that “placing all your eggs in one basket” is a high-risk move. If that basket falls, you lose everything. Therefore, DO branches out into a couple of different markets. This allows us to build up a solid foundation that holds steady when the market falters. Successful businesspersons often apply this concept towards their investment strategies, and it proves quite effective. DO recognizes that all markets fluctuate. To attain long-term sustainability, we consider risk events and plan accordingly. We attribute much of our successes to a healthy mix of short and long-term planning.
How does DO Diversify its Business Model?
So how do we apply the strategy? Well, taking a true diverse path to scaling a business requires much time and consideration. We at DO only want to expand into the new areas of the market when we are sure that DO can provide high-quality products, services, and results to clients. Otherwise, we will lose clientele and gain a poor reputation – we know this. Therefore, we have developed a three-pronged approach to building our brand.
Look at the Current Market
The very first thing that DO looks at when considering entering a market is to look at the current state of affairs and organizations within that market. There are a lot of moving parts in specific markets that require attention. Additionally, the consensus of how companies in a particular field or discipline provides a look into the health of a market as well. Therefore, DO first looks at how a market is handling current challenges, the client-base, and whether or not the market has potential for DO to grow and expand within its disciplines or fields.
Look at the Future of the Market
Of course, it is easy to get shortsighted with all of the glamorous marketing strategies companies pull off. A superficial glance at the market can be deceiving. So, DO also takes a holistic look at the market’s potential and its sustainability in the long-term. While there’s no way to be certain how well a market will do in the future, certain indicators – such as new avenues for growth – may shed light on whether DO should pursue the specific market.
Collaborate with Market Entities
I have to say, collaboration is an amazing technique for sharing information. We can learn things from other individuals or organizations by interfacing with them and asking questions. Some may see collaboration as a weakness, but they have it all WRONG! Communicating with others in the field helps to brainstorm new ideas, share methodologies, and build relationships that could propel the business forward. DO embraces cooperatives and readily works with other organizations within our markets with the goal of mutual growth.
For Which Markets are DO Primed?
It is common to hear stories of those mythical startups that broke into a market after company executives taped written decisions to a wall, played darts blindfolded, and chose the direction of their company by where the darts landed. If only businesses could be successful this way. However, the reality is that there must be a clear understanding of the target markets before a company ‘jumps’ in and scales. In order to combat ill preparedness, DO looks to accomplish two things before pursuing opportunities in new markets.
We Find a Niche to Plant Roots
As DO looks to conquer new fields and provide a new suite of products, services, and results, the first question we ask is, “Is there room for us in the market?” Out of the 10s of thousands of companies in the engineering industry, we strive to offer something to our clients that no other group – or a minimal amount – offer. If other companies provide similar products, we make sure there are different and improved methods to maintain a high value. Additionally, the appeal of broadening our scope only emerges with the identification of a service void that we can fill.
Stop right there now! We do not want a massive black hole to work in though. DO understands the need to bring high-quality performance to niche markets, but also understands that pursuing high-risk opportunities with low potential lack alignment with company goals. DO would rather work towards a market segment that has potential for sustainability and clientele. We must also ensure we have the proper infrastructure, tools, and personnel for the market in order to grow, however.
One of the greatest joys for DO is seeing its employees grow professionally. As a way of preparing for new markets, DO hires high-caliber employees from the target market who have both experience and insight into the disciplines and methodologies of the professions. We recognize the need to facilitate personal growth so that employees have both intrinsic and external motivation. As a result, the company then attains new opportunities. This symbiosis allows DO to continuously, stably grow into target markets.
DO Then Branches Out
Once discovering and building a solid base within a niche market, DO formulates tactical, operational, and strategic plans to branch out and potentially offer a larger suite of products and solutions. We do not approach new growth lightly. Every move is calculated to ensure we maintain stability and alignment with company goals.
What Risks Will Expansion into the Market Bring?
While risks can never be completely eliminated, they can be managed and mitigated. It is unfortunate, but necessary to understand that all business comes with risks. There are a lot of moving parts with a contracting business, so DO takes the time to conduct research, analyze pitfalls with different methodologies, and act accordingly. Therefore, before entering a market within our industry, we first check to see the potential avenues of failure that could become problematic from an operations or financial standpoint.
Some markets are volatile; others are consistent. One major goal for DO is to ensure the stability and foundation of its operations so that employees maintain security in their jobs while the company builds up its portfolio. Therefore, DO first checks to ensure that entering the new market will not negatively affect the current employees. This could be from a hiring and recruitment, an office management, or other perspective. Additionally, we at DO prefer work to be distributed in an organized fashion that ensures employees have focus areas of responsibility.
Aside from employees, the company must also consider day-to-day operations and their impact by adding new markets with projects of different types and categories. There could be financial limitations that could result in carelessly approaching the new market based on its volatility and scope of clientele. DO therefore conducts extensive research into the finer points of each market to ensure business feasibility, profitability, and long-term stability.
In order to succeed, you must be willing to accept some level of risk. Taking risks has led to the inventions and innovations that changed the world. For instance, Dr. Grace Hopper (in the mid-1900s) fought against a predominantly male industry at the time to become the world’s mother of computer science. Her portfolio of inventions includes the development of COBOL (i.e. one of the first computer languages), among others. DO seeks to take on acceptable levels of risk so that we may push the boundaries of the industry and drive innovation forward.<< Previous 5 Key Decisions that DO Made to Improve Workplace Morale | The Place for Arts in a STEM Workplace Next >>