Hey! Do you really want to rule the world?
Do you really want a high “Return On Investment” that really impacts your bottom line?
If yes, then you’re are LITERALLY on the right page.
Before moving the needle further in the right direction, I want you to realize one thing.
Did you ever walk long distances with more luggage?
Let that be after shopping luxury goods in a luxury mall and walking to your luxury car.
This question is for you if you’re really that rich enough. Even richness pinch sometimes how much ever you love it. Isn’t it.
If you had walked with more luggage, then how did you feel?
You could have realized by now “less luggage is more comfort”. isn’t it.
Even if you’re someone who is dead broke in business, there is nothing wrong with it as we’re witnessing the world’s best brands going bankrupt.
When we had enjoyed success when we had more, it is our dharma to be happy when we are broke, or else dragging sadness increases more and never reduces, because you’re cooking worries by the day. If you don’t cook they minimalize. It’s that simple.
Now, look into the context of both in various areas of your life and business.
Do you need more luggage or less?
Do you need more worries or less? No right.
Do you need more productivity in your life and business?
Hah 😊 here you will definitely say yes.
If I am not wrong, you would be super happy to hear it.
You should take a selfie and store it to remember this very moment as it’s going to change your thought process. I don’t mind if you post it in the comment box below.
A couple of things before going ahead:
✔ If you know what I am sharing and you haven’t implemented then this could be a validating point.
✔ If you knew it and implemented it effectively in your business then your idea of minimalism is validated here, do share in the comment which helps others to learn from it. Thanks in advance if you’re sharing.
✔ If you don’t know the effectiveness and essentialism of minimalism or if you haven’t heard it the right way, then this is going to change your life and business provided you don’t re-invent the wheel, and just implement “what I am going share adapting into your business.
Why is this now and how it’s going to help to lead through inflation?
In the last inflation “Article no.7″ – Essential action a CEO must take, you would have learned about “Lean and Mean” If you haven’t gone through it, or just swim through it like any other social media post then “here am sharing the link” to check and implement:
Here is the link: https://www.linkedin.com/pulse/what-essential-actions-ceo-must-take-entrepreneurs-harshzad-/
Well, If you would have gone through that above link and implemented the strategies then this article: minimalism is just not a design philosophy, it’s a business philosophy too” helps you further go deep into your business architecture.
Minimalism is all about eliminating the unnecessary. It is all about Simplicity, Utility and Elegance. It shouts – Less Is More.
It’s the art of keeping it simple.
Why do you need to intentionally minimize or discontinue cash-inefficient businesses and become “lean and mean” to further increase more focus?
Not even one out of a million businesses understands the effectiveness of this and the “Range Architecture” in business.
The reason is simple, their decision-making is in the market and not with them.
Let me give you a few examples:
I will start from my business itself.
YOUth:
When I left my job in 2010 to start my entrepreneurial journey, I have started my first fashion store by the name YOUth – Urban Casuals For Men
I have exactly followed a certain methodology to create my store product range architecture and the design philosophy – “Just” Men’s Casuals, “the way the world-class leaders” from Alfred P. Sloan to Steve Jobs to Elon Musk to Phillippe Starck do.
{{General Motors’s one of the most famous range architectures was developed by Alfred P. Sloan of General Motors in 1921.
Alfred P. Slogan’s so-called Ladder of Success gave each car brand a price point that wouldn’t conflict with any others.
It was said that you could tell who lived in which house by which car was parked outside – Cadillac.
His range of architecture simplifies the consumer’s questions: “which car is right for me?” A simple one, not a stressful one.}}
With that methodology, I created “just men’s casual wear range” and under that too, I focused only on
Tees – 12 chest prints x 6 colors x 5 sizes + 6 solid colors in crew and v neck.
Polos – 6 – 8 Solid colors x 5 sizes + 6 – 8 stripe polos + 6 – 8 sporty x 5 sizes.
Jeans – 12 Shades x 2 fits x 6 sizes
Chinos – 7 – 8 Colors x 5 Sizes x 2 fits
Shorts – 12 – 16 designs x 6 sizes. For a couple of years, we had even maintained 40+ design options to specialize in shorts
Shirts – 5 Sizes common x 12 plaids + 8 -10 Solids in Cotton, Linen, and Cotton linen x all full sleeves along with half range in half sleeves in solids.
and just 2-3% impulse merchandise.
And again under these too I was super specific with the range options so that I can incur no loss and gain cash per overall share.
When I had filled my store with fewer options the traffic movement was fast, purchase decision making was fast, not many queues at trial rooms, billing was fast – Can you imagine the speed of transaction – Velocity.
Velocity is one of the building blocks of any business.
When I have increased more options to test, customers use to take so much time to decide which one to buy, If I buy this, I can’t buy that, at the same time I can’t buy both, If I wait for next month as I don’t budget for this month, then this design may not be there. In the end, they purchase one they like, and they still go with less satisfaction post-purchase, which they regret.
The speed of transactions was reduced.
Behavioral economics says that “complex choices usually result in no choice at all and more importantly, no sale at all.
I shared almost everything about my business range, anyone can easily adapt and create a 1000 – 1200 sqft super luxury casual wear store or can go online with a predicable 8 – 10 lakhs least sales with higher profits in a good residential market space.
I have done good business because I had created the right “range architecture”, and also have created a pretty good name.
I also had the vision to create 100,000 stores, but the idea parked aside in my mind later with other plans for Coaching and Consulting as I enjoy most as I can create more value which you’re seeing live now.😊😊😊
With that being said, If you look into any cash-inefficient businesses, the product range architecture will be a default creation on the market’s decision which is mainly Retailers and Competition. IT NEVER WORKS THIS WAY.
Everyone who is struggling in the business and went bankrupt, it is one of the main reasons. Now let’s look into another example of Apple.
Apple:
How did Steve Jobs create a trillion-dollar company saving a company that was in bankruptcy?
You might know this, Steve Jobs was removed from his own company and he was asked to come back when Apple was on the brick of failure and bankruptcy.
When Steve Jobs returned to Apple in 1997 to his own co-founded tech company more than two decades earlier, during the final quarter of 1996, Apple’s sales dropped to 30%. due to dysfunctional management which was a perfect example.
It became too clumsy to handle.
Microsoft was the dominant computer company in the market at that period time to Apple.
The first goal as a CEO, Steve Jobs reviewed the company’s product line which was spread out and scattered range and found that Apple had been producing a dozen varied versions of the same product to satisfy retailers‘ requests.
When he was in a product manager’s meeting, as he was listening to them and suddenly he shouted and said, “stop, crazy” as they were unable to explain why so many products were necessary.
Steve Jobs asked one of his top managers, “If any of my friends want to buy our product, which one do I tell them to buy?”.
He didn’t get the simple answer that he was expecting.
Steve Jobs got into work and reduced the Apple products range by 70%. Everyone thought “he is doing it out of spite, taking revenge”.
Certainly not. He was actually referring to right-range architecture which should be minimalistic, effective essential, and existential for higher productivity and higher profits.
Range architecture is the structure of a company’s products, sub-brands, and price points.
A well-designed range will help your customers pick the right product at the right price.
Steve Jobs followed a similar methodology.
He knew that more options meant more prices, more models, and more choices which leads to very complex brand architecture.
– When General Motors haven’t followed its own successful brand architecture, it lead General Motors to face bankruptcy in 2008. This happens when your decision-making of business is in the hands of markets and competitors and also re-inventing the wheel.
It is clear that lesser choices lead to more purchases, faster, and less after purchase satisfaction.
But people’s common sense says, more choices give the customer more satisfaction. No.
So, the move to the smaller line by Steve Jobs was despite hundreds of products there was no clear answer, sales were causing depression, and the company is unable to pay debts.
The move to a smaller line of products was to have a great focus on quality and innovation which paid off.
During the first fiscal year after his return, ending in September 1997, Apple lost $1.04 billion and was “90 days from being insolvent,” Jobs says in the book.
One year later, the company turned a $309 million profit. Today the company is worth more than $500 billion
His insight was to help people choose a computer using only two questions:
- Are you an everyday consumer or a pro?
- Do you want portable or desktop?
The real fact actually points to minimalism.
The simpler a product range, the easier it is to make a choice, the more sales you can get.
Later jobs innovation continued and the company introduced revolutionary products including iPod in 2001, an online marketplace – Apple iTunes in 2003, iPhone in 2007, and the iPad in 2010.
Still, the company range is very minimalistic and highly profitable.
Tesla:
How many models are there in Tesla Cars?
Just 4 models – Model S, Model 3, Model X and Model Y.
And in solar energy: Solar roofs and Solar panels
And other than those, they have Chargers and Accessories, Vehicle Accessories, Apparel, and Lifestyle products.
Even if you see, under each range, they have a very minimalistic line.
Jean Claude Biguine:
If you look into Jean Claude Biguine’s salon services and the salon design, it’s very minimalistic and does awesome profitable business.
You look into Philippe Starck’s design, super minimalistic range.
I can share 100s of examples like that, but the bottom line is how can you create a cash-efficient business and minimalize or completely eliminate cash-inefficient business.
This is critical, but it’s most important to consider as this should be an existential strategy in your business.
If you look into any of the above case studies what does it communicate, minimalism is just not a design philosophy, it’s a business philosophy too.
If you look into any of the best fastest growing world-class companies, there is one principle that’s surfaced time and time again is: make it easier for the customers where it clearly makes the choice easier.
The core objective is:
- To make the sales cycle shorter,
- Increase retention,
- Create recurring revenue,
- Reduce post-purchase regret,
- Increase efficiency etc…
Just imagine a super simple minimalistic design in every area of your business, from
- Organizational hierarchy to
- Product line to
- Pricing to
- Marketing to
- Sales to
- Operations to
- Supply chain to
- Customer service to
- Corporate design to
Retail environment (if you’re into b2c), to what not including, everything, and practice the same in your life too.
I was so inspired by Steve Jobs and I strictly follow his philosophy:
If you check my wardrobe, it’s super minimalistic:
- 3 Dark blue jeans – close to similar color,
- 4 White shirts – 3 different brands,
- 6 Boxers and vests – 2 brands,
- 5 Track pants of the same brand and same color,
- 4 White tees
- 2 White polos,
- 6 white hankies 😊😊😊 and what left,
- yeah, 6 pairs of socks –
If I want to shop, I straight away go to my favorite brand’s stores, I just replace the new one with old, but never overbuy and keep. I have donated my suits to all other stuff when I was not using them at all.
For me it saves time, I don’t have to think too much, yesterday I wore white, today what to wear and tomorrow what to wear, for this party or that function – Everywhere just white shirt and blue jeans, that’s yet.
Trust me even If I go out for dinner with friends and family, my choice is very limited and almost available everywhere.
When you incorporate this minimalistic design philosophy into your business and in your life, in the next 12 months’ time, you will see miraculous results in the bottom line.
Mindset again plays a major role here
This works if you believe it.
I had a client who is an Environmental Scientist. I tried a lot to convince her even after I truly connected, but she wasn’t ready to reduce the baggage as she feels that she has different accreditations and can get various jobs in various industries.
This is called FOMO – Fear Of Missing Opportunity.
In business, it is never about getting business from “Multiple Streams Of Income”.
It’s all about creating a strong “Main Stream Of Income”, can you see both are MSI.
The internet world talks about the first MSI (Multiple Streams of Income)
When you have the “ability” and the “market size” is huge to tap in with your best expertise in simplifying the streams, why need too many streams, It doesn’t require unless you’re services are saturated by yourself serving the entire world. That’s how a world-class brand is born.
That’s what GM and Apple did.
99% of businesses don’t have clarity on what business they are into and what business they aren’t into. This is the first role of the entrepreneur.
When Steve Jobs adapted minimalism as essentialism, the organization had to lose 3000 employees. But later they balanced.
When you follow this philosophy and serve consumers, Consumers not only thank you but can become your finance team where you can incorporate a customer-funded model too here, “which we will discuss in future articles”. I use this strategy with every client.
Remember The Paradox Of Choice:
Too many choices will have 2 major negative effects on the people:
- It produces paralysis rather than liberation
- With so many options to choose from it is very difficult to choose at all.
So, look into your business, sit with your team, take that stand first like Steve Jobs had taken and minimize cash-inefficient business or eliminate it and create a way forward to lead over inflation and ahead once it subsides.
That helps you maximize your productivity and minimize efforts, increasing focus on the right areas of your life and business
I strongly hope this article will help you, thanks for taking your precious time going through my articles, and many thanks if you’re implementing.
My Ask:
If this article was insightful and useful then please do click on this link and share your valuable feedback with a 5-star rating. I deserve it as I am sharing this article with unconditional love and respect for your growth.
Here is the link: harshzad.com/feedback Thank you so much in advance.
Please do share your valuable comments below and what business framework you need, I will try to make it soon for you.
And finally, please share this with your loved ones so that as a community we can help others, by giving and sharing no one become poor, you can do it effortlessly with just a one-click share at the bottom
Be awesome and prosper
For you wealth
Harshzad K
Let’s BIE HUB – biehub.in
#recession #inflation #inflationstrategies #wealthwisdom #leadershipdevelopment #wealthybusinessframeworks
