Is now the time to reinvent your business in order to transform your fortunes?
“At least 40% of all businesses will die in the next 10 years… if they don’t figure out how to change their entire company to accommodate new technologies”
John Chambers | Executive Chairman, Cisco System
Businesses change, technologies evolve, markets grow, markets die. The only thing we can rely on is the inevitability of change.
From my youth, Woolworths were on every high street. My first camera was a Polaroid. Saturdays were nights in watching videos rented at Blockbusters. All three of these companies are no more. History is full of businesses who were unable to adapt, to make changes when needed. Of the Fortune 500 companies listed in 1955, only 60 remain. See the list here.
Proof that many businesses struggle with change and those that fail to innovate, will die.
There are times when companies face changing times, and business growth all but disappears. In such circumstances, companies may move towards cutting down, working leaner, accepting shrinking market share and plummeting income. Alas most faced with these circumstances will chain their door for the last time not to far in the future.
I met with a new client last week, in such a situation. Fortunately, he has read the signs, seen a very changing shrinking market, and has realised if he doesn’t make drastic changes to the business, there won’t be a future. But we are talking drastic changes, full-fledged reinvention.
There are many companies who find themselves slowing right down due to flawed strategy, changes in the market place, fierce competition, a downturn in productivity or perhaps a slow down on the sales side.
No business ever stays exactly the same throughout its lifetime. As market conditions, customer demands and technology change, companies need to adapt to stay relevant and keep growing. As history shows most fail to adapt. Its brave to implement a full blown reinvention, but it is the most sensible solution.
Recognizing this down turn in business is crucial, doing something about it a necessity. I have seen too many business owners refuse to acknowledge there is a problem and so bury their heads in the sand, don’t take action and then when the company is wound up wondered where it all went wrong!
It is incredibly easy to become consumed by the day to day operations of your enterprise, and to never make time to take a helicopter view and analyse how things are.
These are signs to look out for:
- You feel under constant pressure
- Your business has become insolvent
- New customer enquiries are non existent
- Stock is ageing
- You are losing clients
- Your margins are shrinking
- There’s no buzz about your business anymore
- Your marketing efforts haven’t produced results
- Your bills aren’t getting paid on time
- You’re experiencing a high staff turnover rate
- You’ve run out of ideas for new products and/or policies
It is important that we all accept nothing is forever. To achieve long-term survival, a business must develop and adapt to a changing world, even if this means you need to reinvent your business. Wish someone had told Toys R Us.
Sooner or later, all businesses, even the most successful, run out of room to grow. Statistics show once a company runs up against a major stall in its growth, it has less than a 10% chance of ever fully recovering. The alternative is to spot the slow down, and then make big changes, in fact reinvent the business.
If your business is on a continual downward trend it may be time to re-evaluate what you’re doing and reinvent your business. To transform a business you need to understand where you are today, where you need to get to tomorrow, then build and execute a plan to take you from one place to the other.
Interested? Well begin to determine what you want your business to be, what new products and service offerings you will deliver and how you will promote and position this to current and prospective customers.
Reinvent your business but enjoy the process.
“The biggest impediment to a company’s future success is its past success.”
Dan Schulman | CEO of PayPal
Do you need support to reinvent your business, maybe need a Business Health Check? Talk with me or check out my coaching page for Business Owners & Top Executives. Get in contact! Make the best investment possible in yourself and your business!
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