Small and medium-sized businesses are often tempted into thinking that they don’t need to market their products or services. This complacency usually arises when the business has a loyal set of customers and growing revenues and profits. The company owner thinks that when the firm already has more customers than it can handle, it would be a waste to spend on business development.
According to an article in the Harvard Business Review, truly great companies don’t scramble to adapt to the future but instead adapt and work to create the future. This includes anticipating, adapting and reacting to new technologies and integrating one’s business model. The article also points to the case of Microsoft, where the CEO dismissed the iPhone and claimed it would never gain significant market share; IBM acted to the contrary by directing its focus to growing technology in cloud computing, which led to rapid growth.
Your company doesn’t need to invent a new product like the iPhone to compete. But you do need to anticipate growing trends in technology and the infrastructure being created in order to get ahead. Take the first step by combining the use of new technology with growing business trends, like automation, to stand-out and compete.
Question 7: What sort of margins are expected in the new market and how do these compare to the overall margins in our company?
In the previous article we discussed the matter of sizing up competitors in the new market. In this seventh part of our market assessment series, we’ll look into another crucial aspect – profit margins.
Recommended Reading: How Small Business Owners Are Leading the Country in Innovation
If you have been in business for a while, you and your staff probably have had some great ideas about how to improve your business. The interesting thing is, you are not alone. As a matter of fact, according to Patricia Greene, Professor of Entrepreneurship, Babson College in her article, “How Small Business Owners Are Leading the Country in Innovation,” as the title indicates, small business owners lead innovation – not just in product and service development, but also in their processes, markets they pursue and serve, sources of supply and changes in their business models.
Please take a look at her article and let us know whether or not you agree. Are you one of the 2/3rds of business owners who are in some phase of innovation? Do you feel that some form of innovation will give your company an advantage over your competitors?
How Small Business Owners Are Leading the Country in Innovation
Entrepreneurs are creating meaningful impact in their communities
By Patricia Greene, Professor of entrepreneurship, Babson College
Small businesses are the innovators of the world, while functioning in a climate in which innovation is rapidly becoming a word that’s use is so ubiquitous that it’s in danger of losing its power, and that would be a bad thing. Broadly, its usage is frequently synonymous with invention or creativity. Narrowly, innovation can sometimes refer to a particular part of the development of a new product or service, usually having to do with a specific type of technology.
Earlier this year, Babson College published a research report The State of Small Business in America 2016, highlighting the top challenges and opportunities that America’s small-business owners face in today’s economic climate. One of our most unexpected findings revealed the amount of innovation under way by small-business owners. Survey results aggregated insights of more than 1,800 small businesses across the U.S., all employers representing every industry sector, with a median age of 12 years in business, a minimum of four employees, and at least $150,000 in revenue. In other words, entrepreneurs who are the economic core of our country.
Rick Meekins is the Managing Consultant at Aepiphanni, the trusted advisor for business leaders who are seeking forward-thinking solutions to help them plan for and navigate through the challenges of business growth. Our entrepreneurial multidisciplinary team works with clients to develop differentiating solutions and provide direction focused on lasting, strategic results. We exist to help our clients CREATE | DESIGN | BUILD extraordinary businesses.
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