[picapp align=”left” wrap=”true” link=”term=stock+market&iid=7237024″ src=”d/5/e/2/High_angle_view_6dfe.jpg?adImageId=9873992&imageId=7237024″ width=”234″ height=”234″ /]This disclaimer is quite popular in adverts for stock portfolios and precious metal investments: past performance is no guarantee of future reward. So true. Have you considered that it is also true of your business?
You’re only as good as your last iteration. Or hit song. Or hit movie.
You shouldn’t rest on your laurels. Your next “big thing” may bomb.
Here’s a good one: There is always someone new who’s never heard of you or your products or services. How do I know this? The population of the planet is over 6 billion souls.
Our businesses, if they are currently enjoying success, can be something easily taken for granted. Especially if a business is doing well in these times of recession. But taking something for granted means that you aren’t really seeing it. It’s like having a painting hanging on your living room wall. Perhaps when you first saw it at the gallery you loved it. It either conveyed an emotional meaning to you…or, as often happens, it simply matched the color scheme of your home. Either way, you bought it and hung it in a place of visual prominence. Over time, as human nature goes, you cease to even see it. We get comfortable when things go well. This getting comfortable can blind us to dangers and new opportunities.
I’m re-reading Michael Crichton’s The Lost World for about the fifth or sixth time. [I get in these moods and love to read again the works of favorite authors.] In the early part of the novel Crichton’s character of Ian Malcolm [played so wonderfully by actor Jeff Goldblum in the movie version ] gives a lecture having to do with chaos theory and the “edge of chaos.” The character says [on page 4 in my hardcover edition], “…We imagine the edge of chaos as a place where there is enough innovation to keep a living system vibrant, and enough stability to keep it from collapsing into anarchy…if a living system drifts too close, it risks falling over into incoherence and dissolution; but if the system moves too far away from the edge, it becomes rigid, frozen, totalitarian. Both conditions lead to extinction….” [Great stuff!]
Said by me, simplistically – if we let ourselves become too comfortable with our current success then our businesses can cease to be alive and “vibrant.” I think it is very interesting to liken our businesses to a living system because without constant growth and change, our businesses can indeed fall into extinction. Sometimes staying on that edge means:
- listening to our customers – what are they telling us about our products and services? Is there something we can do better or provide in a better way? Are we not offering a product or service that our customer could truly use in addition to our current offerings?
- listening and watching the marketplace – trends shift; people may love purple widgets this year but will abandon them for yellow ones the next. We have to constantly be aware of shifting needs in the marketplace. This also means in times of recession we should be aware that perhaps our customers aren’t buying, not because there is a problem with our products/services, but because the customers simply don’t have the spendable income. What can we do to adapt?
- watching for new opportunities – new technologies come out all the time; how can we adapt them to our business?
Be thankful and grateful if your business is currently showing a profit…or at the very least breaking even…right now. However, also be constantly working on and revising your business plan so that you are not caught unawares of new opportunities, trends and technologies.