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Posted 22nd April 2024

How to Run a New Business by Cutting Out the Middlemen

What makes a savvy business move? It’s about streamlining operations, cutting costs, and enhancing consumer value. Bypassing traditional distribution channels and intermediaries is now a big deal. New businesses can establish closer relationships with consumers this way. It may even be possible to undercut the competition with more attractive pricing. Thus helping to differentiate themselves […]

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how to run a new business by cutting out the middlemen.


How to Run a New Business by Cutting Out the Middlemen

What makes a savvy business move? It’s about streamlining operations, cutting costs, and enhancing consumer value.

Bypassing traditional distribution channels and intermediaries is now a big deal. New businesses can establish closer relationships with consumers this way. It may even be possible to undercut the competition with more attractive pricing. Thus helping to differentiate themselves further in crowded markets.

Which industries have benefitted most from innovators cutting out the middlemen? Let’s take a look at three sectors where upstarts are doing things differently.

Property

The property market takes a slow and steady approach to marketing and selling homes. Estate agents may be able to encourage a quick sale. However, there’s the legal process to factor in too. Conveyancing timelines are often slower than the seller’s need for speed. This has often held up other transactions. Especially when a seller is part of a longer chain of home purchases.

More recently, companies have sought to add a fresh dimension to the UK property market. This includes firms committing to buying properties for sale in ultra-quick fashion. They do so via straight-up cash transactions. Today, homeowners can sell a house fast for cash, which transfers into accounts in as little as seven working days. The benefit of this kind of sale is that there’s no threat of a chain breaking or falling through. With zero risk of delays or further expenses.

It’s a move that’s simplified the property market. Especially for those keen to liquidate their assets fast.

eCommerce

The rise of eCommerce platforms like Amazon and eBay have helped to democratise retail. It’s allowed small retailers to reach customers on a global scale. Small businesses don’t need a brick-and-mortar presence. Nor do they need a distribution network to reach their global customer base.

Many direct-to-consumer (DTC) brands like Casper and Warby Parker have capitalised on this trend. They’ve sold products direct to shoppers online. They did so by cutting out wholesalers and retailers. This way they can offer lower prices and personalised shopping experiences.

Travel and Hospitality

The travel and hospitality sector is another that has seen disruptors cut out the middlemen. Instead, they’ve aimed straight for travel connoisseurs. The emergence of peer-to-peer travel platforms such as Airbnb and VRBO has changed the face of the travel sector. It’s empowered property owners to rent out their own accommodations direct to travellers. They’ve cut out intermediaries like hoteliers and agents. Third-parties which may have taken a commission in years gone by.

Ride-sharing services like Uber and Lyft have also transformed the transportation industry. They connect passengers directly with drivers. This offers convenience, flexibility and, crucially, often lower fares than traditional taxi services.

Bypassing intermediaries has become a viable strategy for new businesses. Especially those seeking to disrupt and redefine existing industries and business models. By leveraging technology, innovation, and a customer-centric approach, these start-ups can forge immediate relationships with their target audience. Thereby driving growth and stability in today’s dynamic world.

Categories: News


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