Some of the axioms of business don’t ring true anymore. Oh, there is passed down wisdom that never goes out of style: “the customer is always right,” and “if you’ve made a mistake in business, own up to it and make it right.”
But as businesses start and grow, the tendency becomes to “expand,” or open more stores, or aim to hire more people. If a business announced that due to a rise in sales, more employees were hired, and another warehouse was purchased, that was instantly viewed as success.
Now, business owner should be wary of even considering to expand at all.
Consider these three recent items we came across:
- The New York Times magazine reported that failure and innovation go hand in hand. The life cycles of products have been changing so fast that large companies are more and more at risk if they over-extend themselves while being timid about being innovative and keeping a pulse on trends.
- The Wall Street Journal discussed that “blue chips” are blue because of poor sales and earnings growth, with little stock market appreciation.
- The answer lies in The Innovators, (Walter Isaacson.) In it, he discusses the success of the digital, computer, and internet revolution, and in particular, how commitment, diversity, collaboration, and even friction among diverse participants are evident in almost every phase of the revolution. Steve Jobs and Steve Wozniak, or Gates and Allen are the best examples.
This should come as no surprise because society and business fail to recognize old paradigms, and because of that, large structures are failing. Small companies that make wise decisions, like only renting temporary space, or hiring temporary workers when needed, and can tweak their products more easily and quickly, are the ones with the business modicum of success. And because of their small operation, are more open to changes in trends, aren’t so invested in one particular item that may be obsolete in a year.
What to take from all this?
- “Think small,” or at least “act small,” to effectively deal with today’s environment.
- Remain vigilant of customer wants, your competition, and lastly, if your product or service continues to measure up. For Steve Jobs, it was an exciting enterprise to stay ahead of, and even try to anticipate, market trends and not view it as a distasteful chore.
Dr. Bert Shlensky, president of www.startupconnection.net, offers experience and skills, and a team devoted to developing and executing winning strategies for businesses of all kinds. This combination has been key to client success.