What are the two things you should do after your business has been established? What are the key components of a business’s maturity model?
Once you’ve established your business, Hamilton Helmer advises that you cultivate your brand and create complex operational processes. You can’t effectively implement these strategies until your business starts to mature because they require a stable foundation and consistent performance over time.
Let’s look at what you should do once your business has matured.
Business Maturation
Helmer explains that a strong brand develops from repeated positive customer interactions, while complex operational processes evolve from the insights you gain as you establish your business. Focusing on both strategies in your business’s maturity model allows you to cement your position in the market, even as industry growth slows and market demand wanes.
(Shortform note: While Helmer suggests focusing internally on your brand and operational processes to foster stability, Moore (Crossing the Chasm) suggests that mature businesses should also explore external opportunities to maintain market growth and relevance. He explains that only focusing internally can cause a business to miss external market trends or shifts that could potentially affect its relevance and competitiveness. However, by exploring external opportunities, a business gains a broader view of the market and can better adapt its strategies to stay ahead, ensuring its continued growth and survival.)
Strategy #1: Cultivate Your Brand
To cultivate your brand, build trust with customers through consistent quality and messaging. This allows you to charge premium prices for your products and services, as customers are more willing to pay more for the perceived value and reliability associated with strong brands.
Helmer explains that competitors struggle to replicate the trust associated with established brands, as this trust stems from years of consistent, positive experiences that foster customer loyalty. This sense of loyalty creates a bond that compels customers to stick with the brands they know and trust, even when competitors offer better or cheaper options.
How to Cultivate Your Brand
According to Helmer, the following five methods can help you cultivate your brand:
1) Align with customer values: Cultivate an identity that resonates with causes your target customers care about. This helps create an emotional connection that makes your brand both memorable and appealing. For example, if flexitarians value sustainability, emphasize how your business uses eco-friendly packaging and sources ingredients from environmentally responsible suppliers.
2) Reinforce your identity: Invest in multi-channel branding to create a strong, recognizable identity and increase recognition. For example, develop a cohesive visual identity and messaging strategy that carries through your product packaging, website, social media presence, and advertising campaigns.
3) Be consistent: Ensure your products and services always meet the quality standards you’ve promised to reinforce customer trust in your reliability: For example, ensure every batch of your plant-based meat substitutes meets the same high standards for taste, texture, and nutritional value.
4) Protect your integrity: Preserve customer trust in your brand by evaluating how potential offerings or associations might impact your reputation. For example, carefully vet potential partnerships or product extensions to ensure they align with your brand’s core values and quality standards.
5) Evolve to stay relevant: Adapt to changing consumer preferences while maintaining your core identity. This prevents your brand from becoming outdated while preserving the brand image you’ve established. For example, if health-conscious consumers become more interested in protein content, adjust your product formulations and marketing to highlight the high protein levels in your plant-based meats without compromising your eco-friendly practices.
Strategy #2: Create Complex Operational Processes
To create complex operational processes, develop interconnected systems that enhance efficiency. This enables you to enhance product quality and reduce costs—making it possible to offer better value to customers while maintaining high profit margins.
Additionally, this strategy insulates your business from competition. Helmer explains that complex operational processes are difficult for competitors to replicate because they evolve organically through years of incremental improvements, rely on intricately interconnected operational elements, and embed tacit knowledge within your company’s culture.
How to Create Complex Operational Processes
Helmer recommends four methods for creating complex operational processes:
1) Keep improving: Make continuous, incremental process improvements to enhance efficiency over time. For example, establish a dedicated R&D team to continually refine your plant-based formulations, or regularly seek ways to reduce waste and improve ingredient freshness.
2) Develop integrated processes: Design interconnected systems where improvements in one area amplify the benefits in others. This creates a web of mutually reinforcing activities that’s difficult for competitors to disentangle and emulate. For example, create a closed-loop system where waste from your plant-based meat production is used to fertilize crops for future ingredients, enhancing both sustainability and cost-efficiency.
3) Cultivate specialized expertise: Embed critical knowledge and best practices into your company’s culture to foster expertise that competitors can’t replicate. For example, implement a mentorship program where experienced staff guide newer employees in mastering the nuances of plant protein texturization techniques.
4) Encourage employee input: Harness the collective intelligence of your organization by empowering employees at all levels to contribute ideas that may lead to breakthroughs in efficiency or quality. For example, implement a reward system for production line workers who propose modifications that improve the manufacturing process.
