Episode 8 The end of abundance thinking – how to operate in a time of scarcity. ​ Most of us run our businesses in a time of abundance. It was relatively easy to get the materials we needed to produce the goods we offered. Workers were plentiful, energy was cheap. That has all changed. Companies all around the world are facing a supply crisis.

Notwithstanding the supply chain challenges your customers have been used to getting what they want, when they want it, at a price they can afford. Speed of delivery has been a cornerstone of Amazon’s strategy and it gives the company a key competitive advantage. Your brand’s reputation is at risk if you cannot meet your customer’s expectations. In the world of social media people will voice their dissatisfaction loudly and widely.

Although this is a challenging situation, handled well it has the potential to make your supply chain a value creator. How? Consider another trend that will continue to become more important in the next few years, sustainability. Consumers are saying that sustainability is important, some are already beginning to change their behaviors. Balancing affordability with sustainability may be a way to reposition your brand to your advantage with your customers.

Repairing modern equipment is often challenging, making it easier to by new. Not too surprisingly manufacturers have encouraged this idea. Governments and consumers are taking note, a “right to repair” movement is growing around the world. In the UK there are laws legally requiring manufacturers to make spare parts available to people buying electrical appliances. Think about the competitive advantage you could gain if your products had a reputation of being easy to repair. And the sale of spare parts can be very profitable.

It may be time to think again about your product’s lifecycle. Extending a product’s lifecycle will reduce costs significantly. New product development costs money.

Can you make the consumer’s desire for green a cost saver for you? I have always been amused by the hotel industry that encourages us not to change our towels each day, to only change bedsheets every week. Of course, this is what most of us do at home, so it is a perfectly reasonable request. The fact this reduces the hotel’s laundry costs is never mentioned.

Packaging is an area that is ripe for improvement. Plastic pollution in the oceans is a global disgrace and there is a worldwide movement against disposable plastic.

Keep an eye on customer attitudes towards sustainability and beyond to “nature positive” which focuses on enhancing the resilience of our plants to reverse nature loss. The trends towards protecting the world’s ecosystem will grow; if you can identify how you can contribute towards improving the environment and reducing your costs you will be onto a winner.

Tags: How to grow a business, achieve business success, scarcity, opportunity change business model the successful entrepreneur, business common mistakes small business start-up; avoid these common mistakes; IBGR.network, Jeremy Gray, Practical Solutions to Difficult Problems

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