Future-proofing Your Business
The world we live in is rapidly changing. The best business ideas are flourishing because of the advances in technology, management theory, efficiency, and productivity. Your only choice is to either change or be threatened by businesses that are ahead of you. It is important to recognize the rapid pace of innovation and to adapt accordingly.
Here are some statistics that will help you if you have a small business in NZ.
According to MBIE, small Kiwi start-ups that had no employees and were founded in 2010 did not exist in 2015. This figure was slightly higher for businesses with five or fewer employees.
Statistics NZ shows that 37% of micro-businesses fail within two years. This is a sign of how important it is to be future-proof.
Failure to keep up with the pace of change can lead to small businesses in New Zealand, and around the globe, falling behind. This could lead to their untimely closure. You can avoid this from happening if you take preventative measures today. The right insurance for small business is a crucial step to avoiding disasters. It will protect you against unanticipated events.
Why businesses are not prepared for the future
Fear of Change
Some business leaders are afraid of change and refuse to adjust. They are afraid of rapid change and their basic instinct to run away is to resist it. The CEOs and entrepreneurs end up spending all their energy trying to defend or preserve the strategies and methods they have used in the past.
Many small businesses are too comfortable in their comfort zones to make changes. They believe what worked in the past will still work today. The most incorrect business strategy is today’s one that worked yesterday.
For many CEOs and entrepreneurs, future-proofing is too difficult. Even if they realize the need for change, they lack the energy and motivation to do so. They are too busy focusing on the present issues and not able to see the future. The business will continue to erode.
Unable to Listen
Many businesses are blind to their customers, employees, and market. They aren’t open to the changes occurring in the world. They only wake up when their competition offers a better solution. Many small businesses fail to invest in research or foresee the future.
Businesses fail to adapt to change for many reasons. They may not use the information, data, information and resources that they have. Business leaders can become delusional if their organizations grow too large. This could hinder the process of change. You don’t need a lot of money to make the desired changes. The change starts with a change of attitude and mindset.
Future-proofing Your Business
These are some of the ways you can future-proof your company:
Do Not Depend on a Single Product
You don’t have to rely on your product alone. Diversify your product portfolio. Examples of e-commerce companies like Snapdeal and Flipkart that have added logistic wings to their businesses include Snapdeal and Snapdeal.
Strategies from the Past May Not Work
You might not be able to use what worked in the past to get to where you are today. Print ads, for example, might have been a way to get customers for a business in the past. In the age of social media, it might not be as effective. Find new ways to attract customers.
Predict the Future
Customers will not always tell you what they want. It is important to anticipate the future direction of customer demands. Ford cars were feared to be ineffective. Some people at the time may have wished for faster horses. Henry Ford was able to foresee future needs and be successful.
Risk Management Strategies
While you may not be able to foresee future problems, it is possible to prepare yourself to face them. First, identify potential areas that could be affected by these challenges. This could be data security, legal compliance or business processes. It could also include people. These segments need to be identified and addressed.
Keep your ears grounded
Even if you’re too busy with developing products or processes, pay attention to your customers. Pay attention to changes in customer behavior. Listen to what they have to say and how you can help. Listen to what they want and predict the changes in their purchasing behavior.
Keep an eye on top competitors
This is the easiest way to stay ahead of your competition. You can beat your competitors by watching closely and finding better solutions.
The Importance and Value of a Clear Vision
Clear vision is a clear mind. This vision might be aided by a healthy amount of insecurity. Consider what could go wrong and how their business might change in the future. Consider the future, your customers, and the challenges you face. This is how you can create the vision for your company’s future.
Our world is constantly changing. In 6 months, what is new today will be obsolete. Businesses that don’t keep up with the pace of change will lose. There are ways to stay on top of the changes and keep up with them. It is better to look at the reasons a business fails. Lessons learned from the failures of other businesses are valuable for businesses. There are many ways to future-proof your company.