People vs Money. What Drives Your Business?July 27 / JN Design Studio
I have had several conversations with fellow designers, entrepreneurs, and employees about business. One of the many conversations have been about “what type of business model is best”. No we are not referring to the typical “how cash comes in” structure (recurring revenue, new sales, etc..). But more of the business philosophy. Are you an “About the Money” business, or a “For the People” business.
Now both of these types of businesses can go hand-in-hand, but your core philosophy tends to lean to one side over the other.
ABOUT THE MONEY
The businesses that focus more on the “money” tend to be limited by their core thoughts and feelings. Creating products/services that they feel the market/industry wants and needs. Using metrics based on what is selling to determine the products they create. Eradicating the products/services that aren’t making the bill or generating enough revenue.
There are pluses to these types of businesses. By having the core metrics focus on revenue generating products/services, the “money” businesses tend to catch the weaker products/services early or before they become a problem to the business. You stick to what works, which can be a sure bet to keep your business afloat.
But there are minuses to this philosophy also. The “money” business doesn’t really care about what the people want, unless it has already been successful. The “money” businesses tend to follow the trends and limit their innovative abilities. The “money” businesses are by the book. Follow contract stipulations to the “T”. No more, no less. Adopting the philosophy, “If ain’t broke, don’t fix it”. You remember what happened to Blackberry? Lack of adaptability and not listening to what the people want, can force you to close shop.
FOR THE PEOPLE
My business model of choice. The business of creating “Raving Fans”! While the “people” businesses care about the money, they don’t allow it to stop searching for that next big break-through. “People” businesses are using surveys, social media, and other channels to hear what the people have to say about their products/services. Asking questions to the consumers to obtain feedback. “How can we improve the product?” “How can we make the experience better for you?” The “people” driven businesses are not looking for the quick sell, but to build a growing and long-term relationship. Even if it means, giving up a free product past the warranty date; or going that extra mile beyond the contract stipulations for a service. Yes money matters, but the people matter most, since this is who the products/services are for.
The pluses for “people” driven businesses have a higher ceiling. The “people” businesses are always looking for ways to innovate their product. They never tend to be stuck on one thing, unless that is what the people want. The “people” business are aware of trends, but don’t rely on them. These businesses are all about adaptability and flexibility within their practice. Going above and beyond to maintain satisfied customers (within reason of course).
The minuses for “people” driven businesses are that money isn’t the biggest concern. Going above and beyond for people can be risky, because you still may not salvage the relationship. This can also be costly by giving away free products/services to keep the customer happy. The “people” driven businesses don’t want to copy the trends unless absolutely necessary. Because this will slow down the innovation somewhat waiting on the next big thing. Even though following the trends are a sign of what the people want, at that moment.
Here are JN Design Studio we follow the people model. We believe that the reward out weighs the risks. Seeing people happy with their product makes us happy. Even though we may not agree with some of the requests, if we know that we are helping to facilitate a dream within someone’s business or idea, then we can live with it!