You set up your business.
You find a regular supply of customers.
You establish great relationships with your suppliers.
Your revenue easily outstrips your costs.
You are doing well.
You are walking on water.
All you have to do from now on to enjoy a very nice income is maintain the status quo.
For a few years it might well be easy, but then, so slowly it might take you years to realise it, your customers begin to tail off and your profits start a gentle slide.
It does not matter too much because you are still in profit and your income has not dropped sharply enough to spur you into making changes.
So what happens next is….. nothing.
You do nothing.
You become set in your ways.
You think you know your business and know your industry, after all, you have been doing it for decades.
And then, finally, bang, your sales dip, your profits dip into the red and you are forced to acknowledge that maybe you need to ‘move with the time.’
Or a natural disaster hits, a hurricane, or lightning hits, I can hear you say “I have insurance” with a smirk on your face. Well what if it does not hit you but hits your major supplier or customer who is not insured?
How about COVID-19, social distancing, and lockdown for 6 months?
Suddenly you are no longer walking on water, but swimming for survival.
To avoid that, make time to think about the future.
The secret to staying relevant is to be organised about the future, otherwise it is too easy to carry on with the way things are.
Visit your SWOT [Strengths, Weaknesses, Opportunities, Threats] analysis every quarter.
Get someone outside of your business to give you an objective view of your business.
Attend conferences that outlines the future of your industry.
Take a walk down the street and have a look around at how your customers are behaving or what the competition is doing.
The pace of change is happening too quickly, make sure you are not left behind.
When the pace of change on the outside is faster than the pace of change inside your business, your end is near.
At Lora Centre for Innovation and Entrepreneurship we run a 5 months accredited entrepreneurship programme where we discuss these issues with our entrepreneurs. Registration for the next cohort of entrepreneurs is open.
You may apply online now. We start on Saturday, 13 June at 0900. The sessions are online.