It’s no secret that many companies in the building industry are struggling, and some are resorting to extreme means to pull in revenue. This may involve new products that are unrelated to their current offering or new services they are not ready to execute well. The rationale for a “square-peg, round-hole” approach is simple: desperate times call for desperate measures.
After all, the instinct for survival is only natural, and innovation is often the mark of a growing organization. But there’s an underlying danger to overreaching simply to pull in short-term revenue. Those companies that stray too far from their core principles – from the strengths and competitive advantages that enable them to thrive during better times – may find that they have lost focus and diluted their efforts. The result may be long-term damage to their brand.
Still, those in our industry hungry for new revenue streams can identify and implement new avenues for profit and growth. But this effort should begin with a clear understanding of a company’s core principles.
The best way to start? Ask yourself this question: “What business are we really in?” If you manufacture windows, the quick answer may be, “We sell windows.” But the real answer – and the basis for valuable long-term innovation – should go much deeper.
Think about it from the customer’s perspective: Why do they do business with you? It could be the quality of your product, but more often than not it involves a variety of factors: speed to market, accuracy of orders, a knowledgeable team, value-added services, or many others. The most accurate answers will typically involve the ways that you enable your customers to achieve their fundamental tasks and goals for growth.
Once you’ve defined the underlying value you provide to your customers, you’ll be better positioned to implement strategies for growth that leverage your existing core strengths. That may mean approaching prospects who may not currently understand your value proposition, providing a new service to existing customers, or introducing a product line that dovetails with your current strengths.
In addition, this exercise (which mirrors the early steps of Baublitz’s market-tested MAP™ process) will enable you to develop messages that resonate, and to create a marketing platform that supports your long-term strengths.
The bottom line: If you seek to innovate, be sure not to deviate from your core identity.