It is believed that Charles Darwin said, “It is not the strongest or the most intelligent species who will survive, but those who can best manage change,” and this rings true in several areas, including managing your business. Companies must adapt to an ever-changing economy and consumer base in order to succeed long-term; thus, reinventing your business is crucial.
When things start to dwindle, it’s important to recognize it and do something proactive before it’s too late. Stall Points, written by Matthew Olson, suggests companies who stall in growth and development have less than a 10 percent chance to ever fully recover. Two-thirds of stalled companies will be acquired, taken private or forced into bankruptcy. The upside is if you recognize the signs early (like complacency or little to no growth) and make strategic efforts to better the organization, you could come out on top. When reinventing your business, consider the following tactics:
- Tweak your business model.
- Throw it all out and create a new business model.
- Take a calculated risk.
- Change industries entirely.
An example: IBM began as the 1984 computer king, specializing in a streamlined production process for ready-made computers. By 1993, IBM had exhausted its time on Wall Street, as competitor prices drove them out – ultimately leading to an $8 billion loss. Fast forward to 2010; IBM had acquired over 200 companies in the IT services sector, and by 2013, IBM was back. This time, though, as the number one company in enterprise server solutions. The company changed its whole business model after recognizing the trend their company was headed to. So how can you look forward and adjust different areas of your organization to stay relevant?
Analyze where your company currently stands. Identify your group’s strengths, weaknesses, opportunities for growth and threats to the organization. Use these realizations to define changes you’d like to make in order to improve your company’s overall operation and reputation. All things need sprucing up from time to time, and reinventing your business is one way to stay savvy and ahead of the curve in whatever industry you work in.
Are you interested in evaluating and improving your business strategy? Please contact the team at Van West Media for a discussion and quote.
Van West Media is a full service design, support, and consulting agency, offering comprehensive Internet marketing solutions for small to mid-size businesses.