“How do you determine what a business ‘want’ is versus a business ‘need’? Please share any frameworks or methodologies you use to help prioritize what your business needs.”
Here’s how some YEC community members responded:
1. Can a business function without it?
Mike Michalowicz, in his book “Profit First”, highlights how start-ups minimize expenses and still manage to grow. As companies expand, unnecessary costs often creep in. If the business can function without something, it’s a “want” rather than a “need.” ~ Rachel Beider, PRESS Modern Massage
2. Focus on Strategic Alignment
At our B2B marketing agency, we determine business “wants” and “needs” by looking at strategic alignment and impact assessment. First, we understand the client’s overall goals and requirements. Needs are investments critical to achieving those goals, supporting core functionalities and growth. A cost-benefit analysis helps gauge ROI and resource allocation. Wants, although beneficial, are enhancements that add value when resources permit. This method ensures our efforts drive sustainable growth and maximize client success. ~ Samuel Thimothy, OneIMS – Integrated Marketing Solutions
3. MoSCow Method
I use the MoSCoW method (Must have, Should have, Could have, and Won’t have) to distinguish business needs from wants. “Must-haves” are essential for business operations, indicating needs. “Should-haves” and “Could-haves,” while beneficial, are not critical and usually fall under wants. This prioritization helps in resource allocation. For example, upgrading essential software is a need, while aesthetic office improvements are a want. ~ Thomas Griffin, OptinMonster
4. Evaluate Impact
To decide between a business “want” and “need,” I evaluate impact and necessity holistically. I start by defining the business’s short-term and long-term goals, laying a foundation to identify essentials versus desirables. Then, I assess how each action or investment aligns with these objectives. Necessary actions are categorized as needs, while non-critical actions are considered wants. A cost-benefit analysis helps in this evaluation, focusing on ROI and operational sustenance. Additionally, a prioritization matrix plots actions based on impact and effort. Needs typically show high impact, while wants are lower in priority. ~ Michelle Aran, Velvet Caviar
5. Consider the Strategic Vision
To distinguish between business “wants” and “needs,” consider the company’s strategic vision and operational requirements. Start by outlining clear business objectives—both short-term and long-term. Evaluate if an initiative is essential for achieving key milestones or merely adds non-critical value. Conduct a cost-benefit analysis to see if needs demonstrate clear ROI or are vital for daily operations. Wants offer benefits that might not justify their costs when resources are limited. This approach ensures that decisions drive sustainable growth and operational excellence in line with the company’s goals. ~ Robert De Los Santos, Sky High Party Rentals
6. Run the Decision Through a Framework
Here’s a framework I use:
– Impact vs. Cost: Needs significantly affect core functions and are essential. Wants, although beneficial, have a less critical or higher associated cost.
– Necessity vs. Discretionary: Needs are crucial for survival or growth, non-negotiable, and tied to core functions. Wants are discretionary expenses that enhance operations but aren’t fundamental.
– Urgency vs. Timeline: Needs require immediate action to avoid negative consequences. Wants can usually wait or be implemented later.
A prioritization matrix, plotting initiatives based on urgency and impact, is helpful. ~ Kristin Kimberly Marquet, Marquet Media, LLC
7. The Eisenhower Matrix
To differentiate between a business “want” and “need,” I use the Eisenhower Matrix, categorizing tasks based on urgency and importance. Needs are urgent and important, directly affecting functionality and strategic objectives. Wants may be important but not urgent, or neither. This framework helps prioritize resources towards sustaining and growing the business. ~ Andrew Munro, AffiliateWP
8. Evaluate ROI
Assess the potential impact or ROI. Determine if an investment boosts productivity, reduces costs, or improves sales, and then weigh it against the projected spend. Things in the “want” category often can’t be justified by simple math. ~ Firas Kittaneh, Amerisleep Mattress
9. Prioritizing Needs Lead to Long-Term Success
Identifying the difference between business “wants” and “needs” can greatly impact long-term success. Evaluate alignment with business goals, urgency, ROI, and resource constraints. By being thorough and analytical in decision-making, businesses can focus on initiatives that yield the greatest impact rather than those that don’t provide the desired return. ~ Benjamin Rojas, All in One SEO
