27/09/2016

Profit Making Machine

Is your business a Profit Making Machine?

Not just words…

It might sound as a weird, or even a rude question, but it is a pertinent one. We did not just come up with that question because it sounds cool. Each word in the “Profit Making Machine” has a very specific reason for being there.

PROFIT

Every business strives for sustainability. However, sustainability is different for every business. Some companies define it as being able to survive, while others see it as contributing to a better environment. No matter what sustainability is for you, you won’t be able to reach it unless your business makes profit.

MAKING

The origin of every business is the intention of creating value. The product or service you offer to your customers should have an impact that solves at least part of the problem or question they are facing. It is all about what value you have to offer to your customers, how you create impact on their circumstances.

MACHINE

A good machine must be efficient. Make sure you don’t carry any extra weight, make decisions based on results and implement technology in an intelligent way. Certainly in this day and age, technology is all around us. As a business, you should embrace this and use it in the best possible way to bring your value to your customers.  Be it in your back-office, production line or marketing strategy, technology has become “inescapable”.

A model, a canvas, a framework

Now, how do you build a Profit Making Machine? Getting out your dusty management books won’t get you where you need to be. That is why Techtomar developed the Profit Making Machine Model. It is depicted as a machine and contains 6 components: Pain, Resolution, Offering, Format, Infrastructure and Turbulence. To be able to efficiently use this model, we have also created a canvas. Each component on the canvas can be filled in based on 3 questions per component. You can find the canvas and the questions below.

Find out more on how we can help you on our offering page. You can also download both the model and the canvas in high resolution on our downloads page.

profit making machine canvas

Pain

Who is your customer? Describe as detailed as possible.
What is your customers’ pain? What does he want to get rid of and/or what is he striving for?
How is the customer confronted with his pain? When does it occur?

Resolution

What is your unique resolution to the customers’ pain?
Why are you well placed to deliver this resolution?
What are your beliefs and convictions that support this resolution?

Offering

What do you sell to your customers? What exactly is your product or service?
What is your unique added value in this product or service?
What are your daily actions focussed on?

Format

How do you reach out to the market? What is your marketing strategy?
How do you sell to your customers? What is your pricing model?
How do you keep your customers? What is your retention plan?

Infrastructure

What resources do you need, be it technical, human, financial, managerial, etc.?
How do you organize this infrastructure?
How do you finance this infrastructure?

Turbulence

What external factors have an influence on your business?
How do you constantly monitor these external factors?
How do you comply with changes in the external factors?

The trick is to build the Profit Making Machine into your business’ DNA…

Techtomar can help you do that. We can help you Design your Profit Making Machine, Nurture it and Abort when necessary.

Find out how

To successfully implement the Profit Making Machine Framework in your own organisation, you have to make it part of your business DNA. For the Profit Making Machine Framework, this means 3 pillars: Design – Nurture – Abort.

Design

 

profit making machine design cycleThe first step in creating an outstanding Profit Making Machine is to design it. We have developed a methodology based on the Design Thinking Concept. Together with you, we go through 6 phases: Examine, Ideate, Experiment, Distill, Plan and Execute. The most important result of this design is a validated business model. We can achieve validation by doing in depth interviews with both customers and prospects. As soon as you have your Profit Making Machine in place, it is very important to have a solid nurture plan.

 

Nurture

profit making machine nurture sprintsYou can’t build a machine, turn it on and expect it to run smoothly forever. The key to making sure your machines stays in optimal condition, is to nurture it. By critically reviewing you Profit Making Machine on a regular basis. When we say on a regular basis, that is exactly what we mean. Our advice is to repeat the whole PMM model over a 6 week period (1 component per week) and have a review meeting the 7th week. Those of you who are familiar with SCRUM might recognize the pattern. You would indeed have 1 sprint per week and a HIP sprint the 7th week.

Abort

profit making machine abort meetingNow this might come as a shock, but yes. You need to build what we call “abort-meetings” into your Profit Making Machine cycli. An abort meeting has as sole purpose, to look at your business by using dashboard tools that are based on KPI’s you have chosen and then decide whether to keep going, or stop the business. Obviously, the decision to stop, should lead to an action plan with steps that will guide the end of the business. Another decision may be to continue but slightly or drastically alter the business offering, the KPI’s or even target group.