End Goal: Have a Plan B, C, D through Z #
As you get further along with your business, you may find that your first plan of attack was not as successful as you had hoped or you may find that things are going well but it is not sustainable over the long term. You do not want changes in the industry or economy to be the death of your business. You need to come up with backup plans for as many scenarios as possible and be ready to make a change if necessary.
Don’t be afraid to change: #
Change is inevitable for any industry. Do not be afraid to change your entire business model if you find that it is not working. Use your feedback loop and financial analysis to identify areas where you can add, drop or improve certain aspects of your business. It is not uncommon for businesses to change their models as they expand. Many companies started out making one thing and are now in a completely different industry. Nintendo started before video games were even a thing making playing cards and now they are one of the biggest video game companies out there.
Industry Changes: #
Industries will change over time. As new technologies come in or customer demands shift, it is important to keep up with changes in your industry. Your industry should have a regular newsletter or periodical, take time as necessary to read up on changes in your industry. You don’t want to be caught behind on an industry change.
- Continuing Education – Many industries, particularly professional services, require continuing education to keep up to date with changes. Just because you are in an industry that doesn’t require this doesn’t mean you shouldn’t also continue educating yourself. Never stop learning new techniques or new practices.
- Industry Conferences – Most industries have specific conferences and these are some of the best places to learn about your industry and even network with those in your industry.
Technological Advancements: #
This is harder to judge depending on what industry you are a part of, but like it or not technology is changing the landscape of business every day. New advancements in AI threaten multiple industries. Spend some time speaking with other people in your industry and outside your network to learn as much as you can. Technology can and will put people out of business so it is important to stay informed.
Economic Changes: #
Some businesses are great in a good economy but really struggle during a recession. We sometimes call businesses recession proof or more accurately recession resistant. It is important to know if your business can handle a down economy. Luxury brands or things that are considered wants and not needs tend to lose sales during a recession. Recession resistant businesses are things like auto repair, plumbing repair, accountants, health care, and food staples. People need these things
