 Welcome back everyone. So this week we've been talking about business plans and how a company needs to plan what they're going to do and how they're going to do Whatever it is they decide to do So so far we've talked about creating a business plan and having for example a goal of what the business Strives for and the goal isn't necessarily just I want to make a product or I want to make a service Maybe the goal is I want to make the world a better place or I want to make you know Chun Chun a cleaner place or Reduce housing prices something like that, right? So goals can be many things and they don't necessarily have to be the product that the company is going to produce It could be just what they want to accomplish usually in the long run. Okay, so we've been talking about the business plan the goals and To figure out how a company is going to achieve whatever it is. They're going to achieve They really need to think about their customers. So we talked about who are the customers? What is? What are they willing to pay for a service? Are they willing to pay for a service? What do they need from this service? So whenever we're thinking about customers I made a kind of chart that basically has a line between customers and product Product or service so whatever it is that the company is providing right we have customers We have a product and I if you remember I drew kind of an arrow between them and it made this kind of cycle Okay, so what I want to talk about right now is What this cycle is and how companies can maintain? their business over time and basically what can happen is For a lot of businesses People change the tastes change so imagine Korea in the 1970s. It's a little bit different than Korea now, right? Let's say Western movies Western culture Chinese culture maybe Russian culture all of these things are affecting Korea a lot more because In the 1970s. We didn't have the Internet so Korea is bringing in a lot of ideas But Korea is also exporting a lot more ideas outside of the country. So this has made Korea a Little bit more aware in some ways about the internal culture and what kind of internal culture can be exported and also That somewhat shapes the the local culture as well, but then also a lot of different cultures have been imported as well So Korea is a really different place than it was in the 1970s, which is why Sometimes older generations really don't understand young people because the culture gap is just too much, right? So what I'm talking about here is if we think about our customers if we started a company in 1970s What kind of a product could survive for that long So let's think about this for a second if you started a kimbap company or maybe a guksu shop in the 1970s Your product probably hasn't had to change very much Probably haven't really needed to innovate especially if you're known as like a good kimbap a guksu place The product is you know kimbap guksu everyone still eats that right so that part of the culture hasn't really changed But you probably aren't selling a lot more kimbap or guksu than you were in 1970s maybe because people probably have more More income that they're willing to spend on food outside People cook at home a little bit less So maybe because of that you're making a little bit more money or selling more product But for the most part that's a business that doesn't really need to change because people are going to continue to buy Guksu and kimbap, okay, but what are some of the things that? would change so for example Let's imagine that you were producing pants You know like like Paji if you were producing Paji in the 1970s Do you think that the style of the 1970s Paji in Korea would be the same as now and No, maybe a couple people still like to dress in 1970s style But very few people do the style has changed quite a bit right the way that Koreans dress now is Very modern like much more modernized than Then actually a lot of places, okay, so in this case if our product was pants and It's the 1970s So we'll say pants in the 70s Do pants styles change over time? Well, no we could still produce the same pants that we've always produced we could continually produce 1970s pants That's no problem. What changes will the customers change and what the customers want Slash need We talked about this a little bit what the customers want or need Changes over time right so the fashion industry itself actually changes really quickly so Summer fashion winter fashion even fall fashion spring fashion those kind of things so if you're still producing pants from the 1970s Unless it was just for some reason a really popular style and it still is most likely you've had to change your style 1970s Korea I doubt had blue jeans for example probably didn't have blue jeans or Maybe blue jeans were really expensive So now pretty much anyone can get blue jeans for I think Manwon and emarch right so The style has changed quite a bit The way we buy emarchs now stocks these types of pants as well So the customers have changed there once the needs change over time with their style so Changes in style Right and even in the you know the 2000s 2010s the style from 2000s are very different from the styles in the 90s 90s is very different from the 80s Not only in Korea pretty much pretty much everywhere right so pants in the 70s actually have to change over time So maybe pants in the 80s And it's 80s and then also pants 90s and 2000s 2000 let's say 10s and then 2017 I'm trying to think in the last several years There's kind of been some small fashion changes But pretty much everyone is still more or less dressing the same way that they did In let's say the last five years or so it hasn't changed a lot But from 2017 to 1970s it's changed a lot from maybe 2015 or 2010 even to 2017 fashion hasn't changed too much in most cases So the point is The customers have changed over time What if I was selling Let's say a hundred thousand dollars worth of pants per year So a hundred thousand dollars worth of pants per year in the 1970s if I still produced the same pants Sorry, let me erase this if I still produced the same pants Every year Since the 1970s. Do you think that I would still be making a hundred thousand dollars per year? Let's say it was popular in the 70s Was it that pot was that same style popular in the 80s? No So I would probably make let's say maybe I made sixty thousand dollars in the 1980s well 90s kind of I don't know. There's a lot of different styles, but maybe grunge style or something So maybe I only made twelve thousand dollars right remember what we talked about with Costs and revenue if I only made this amount of money then most likely I am Not making a profit. I'm making a deficit actually So if I'm in deficit to produce my product the business can't stay up unless I have another income coming in Okay, so at this stage basically we see that less people are buying our pants Well, why is that? Because the customers have changed style has changed fashion has changed and if we are not Considering our customers and what our customers want what our customers need then We're going to see a drop in revenue Okay, if we see a drop in revenue under the point where we can produce a product Then we're in a deficit and if we don't fix it we will go out of business so What I really want to point out here is You know even though we might have a kind of rise because maybe in the 19 or the early 2000s Somebody liked 70s style again. Sometimes they come back in style for a little bit So we see a little bit of a bump and we think our pants are going to be popular again Well, maybe not maybe this is just a recurring fad, but we'll never be back to where we were in the 1970s So we can either try to hope for these bumps that will occur every few years or We can listen to our customers figure out what they want and what they need Constantly basically just an ever ever ever going process about what the customers actually want and Then revise our business model based on that. So in the 1980s. Well, what are people buying now? What do what pants are cool? What pants are in style? Well, if we modify our pant style just a little bit then maybe We have a little bit of a dip whenever people stop buying our pants. We notice that there's a dip, right? We identify what pants people would buy so then we modify it and then we get basically back on track Okay, and then we can monitor The pant style that we're currently selling until it starts to go down a little bit and then we can change it again And go back on track. So in this case, we've actually Continued to make quite a bit of money just by listening to our customers over and over again The reason I'm talking about this is because most businesses Can I say most businesses a lot of businesses? Don't really listen to their customers. They think that they know what their customers want better than what their customers better than their customers know So basically what this means is if the company is Trying to drive or tell the customers what they want They better have a different business model that lets them actually control the customer's way of thinking Okay, and a lot of companies don't have that so most people are going to buy pants and they want the pants that they want I don't necessarily care about the company that's making the pants so much I just want the pants that I want right so Whenever you're making your business think about who your customers are and Don't just make a business plan once so we talked about the business plan We talked about the business plan and then we had our goal and the goal basically doesn't change right? So we have our goal the goal doesn't change our customers Our customers don't really change but they might So for example The people who are in their 20s in the 1970s Maybe we want to keep that group as customers. Maybe we don't want to focus on 20 year olds We want to focus on people who are teens in their 70s and then grow with them That might be another customer group right so our customers Might change might not change the group depending on how we group it But then our product should change over time. There's very few products. They're gonna stay as Relevant as Kimbap right food Toilet paper like things that people need Will stay relevant but pants for example if you are not in style people will not buy your pants Okay, so whenever you're thinking about business and this is especially true for it programs that are very old programs that are not maintained or they don't work with smartphones People don't use them anymore right so even for or can I say especially for technology people are very democratic about their way They use technology so if somebody is offering something better. It's very easy to switch usually For most products some products like email people are reluctant to switch But most products people are willing to switch as long as they see that this other product is much better So especially for it we constantly have to think about our customers and What kind of things our customers want and need and what are the times? That people tend to change what they want so imagine that this was pants again. Well, let's say that the 1980s started So 1980s started and we see a drop in pants. Well, let's say the 1990s Started we see a drop Right, so every every ten years or so people change their style for the type of pants They were interested in that means that next time we can predict that in the 2000s If we don't change our pant style before that then it's gonna drop again, right? So maybe we can kind of figure out what style is interesting before it drops and then hopefully Increase our profits. Okay, I just wanted to talk about customers and especially putting the customers first a Lot of companies don't build in a way To take in opinions from their customers and constantly be improving their product So whenever you're planning your business, you really need to ask yourself How can I include my customers voice in this if it's just about how much money they spend? It's not good enough, right? You really need a way to reach out and contact your customers and with it That's never been easier than than than now Okay, so that's all I want to talk about today. Thank you very much