Business classification
according to ScaleAmi
At ScaleAmi, we delve deep into the diverse landscape of business, distinguishing between the realms of classical businesses and innovative enterprises. Our insights draw upon a rich understanding of how businesses operate and succeed in different environments. Here's a detailed look at how we classify businesses and their various phases of development.
Classic vs Innovative Businesses
Classic businesses
Classic businesses are those with proven, validated business models. A quintessential example is a bakery, where operational costs, revenue streams, and business strategies are well-defined and replicated successfully across similar setups. These businesses thrive on established models and predictable market behavior.
Innovative businesses
In contrast, innovative businesses venture into uncharted territories. These enterprises may introduce novel technologies, disrupt existing markets with innovative uses (like Uber), or explore new business models (such as renting instead of selling products). Innovation in these sectors isn't just about technology but also includes rethinking how existing models can be transformed to meet emerging market need.
Phases of business developpement
Start-up Phase
From ground zero, businesses, whether classic or innovative, must build their foundations. In classic models, this involves setting up structures based on known frameworks. In innovative models, this phase is fraught with uncertainties and untested strategies aiming to establish viability and initial market penetration.
Growth Phase
Once the business model is operational, the focus shifts to growth. This could mean scaling up operations to cover more market areas or tweaking the model to enhance profitability. The approach to scaling can significantly differ between classic and innovative businesses.
Maturity and Adaptation phase
As businesses grow and mature, the challenge shifts to maintaining relevance and resilience. For established companies, this may involve innovation to prevent market saturation and decline. For newer companies, it's about solidifying their place and expanding their influence without losing the innovative edge.
Key Elements of Business Sucess
Across all phases and types of businesses, three core components are crucial:
1
Team
The driving force behind any business. The right team dynamics can make or break the company's progress.
2
Execution
effective implementation of strategies and day-to-day operations.
3
Strategy
Long-term plannings that align with both market trends and internal goals.