GoDirect Foods Business Analysis Provides Strategic Insight
GoDirect Foods is an innovative idea and as a young company, there are a plethora of business model decisions and paths to choose from. Even though JC Conrad, the founder of GoDirect Foods, had successfully built a similar company from the ground up, he still values feedback from other business experts and enlisted IntelliTect to provide additional strategic insight into the GoDirect Foods business model.
IntelliTect provided an in-depth business model analysis with the primary objective of providing a framework for decision making. The analysis highlighted key assumptions which were used to form hypotheses about the business model. There were three types of hypotheses that IntelliTect helped GoDirect Foods identify:
1) value proposition hypotheses (is GoDirect Foods’ value proposition in line with what the target market actually needs?),
2) solution hypotheses (is GoDirect Foods’ solution to the problem actually delivering the value proposition intended?), and
3) growth hypotheses (can GoDirect Foods establish a sustainable growth model?).
With these hypotheses identified, and using the scientific method for validating (or invalidating) hypotheses, GoDirect Foods can test their assumptions (as quickly, effectively, and inexpensively as possible), thereby reducing risk and enabling continuous improvement of their service. Another key objective of the analysis was to provide a detailed financial forecast to show expected revenues, costs, and profits over the next several years in order to determine key financial risks and estimate the amount of capital required to reach profitability. The intent of the forecast model is to highlight financial assumptions and to continually update the model as more information is collected. The model helps to further identify key business model assumptions and reduce the risk of running out of capital, which is one of the most frequent ways new companies fail. IntelliTect has helped GoDirect Foods highlight key risks and opportunities and has provided this young, innovative company with a model to help mitigate those risks and capitalize on their opportunities.
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