Anyone can get into business.or so they say. Staying in business, however, is the challenge. The Small Business Administration provides figures that suggest that roughly 20% of business last more than 10 years. Of course, some of these businesses merge with or acquired by other firms. Others, still, might be franchises that are assumed by other companies. Natural, economic and personal events impact even more. None the less, most businesses that start never thrive as functional profitable businesses.
Now, of those that seem to avoid natural, economic and personal events, what makes some businesses survive and others fail? Leadership, by its very definition, should be those that are driving the organization toward its vision. Therefore, decisions made by leaders need to be good ones that have a good basis.
Four factors we’ve discussed that impact the leaders ability to make good decisions include:
- A passion for what is possible
- A commitment to managing priorities
- Reliable information or a reliable information source
- Courage to assume risk
Today, we’ll talk about a passion for what is possible.
When we talk about what is possible, we are talking about what could actually happen. The opposite of this is what is impossible, or what could not happen. Capturing larger market share is something that is possible. Desalinating the entire ocean is highly unlikely, if not impossible. A more practical example of something that is possible is changing an employee’s perspectives. Something that is likely impossible would be change employee’s personality.
As a business leader, when you begin considering what is possible, looking at what everyone else is doing and copying shouldn’t be the limit of your possibility search. If that should be your constant approach to doing things, and you don’t find ways to do things differently, you might find yourself chasing the same dollar that everyone else in your industry is chasing. What happens, as a result, is that you end up having to charge as little as possible, just to stay in business. There doesn’t seem to be much sense in that.
An example is of a very well known company that had been the market leader in its services throughout the country. It embraced its comfort for many, many years, with limited commitment to changes in the marketplace. At some point, technology changed, drastically, which changed the distribution method of the product that it sold. Other entrants came into the marketplace, embracing the new technologies and gobbled up market share. Because of the drastic change and loss of market share, the company considered going into bankruptcy. They closed a number of their stores and pursued investments in the new technology. Then, another distribution channel opened up, further consuming the company’s market share to the point where the company is currently closing thousands of stores and considering filing for bankruptcy.again. While they could have been forward thinking, always considering possibilities, they chose to be very good at what they were doing.
Within your industry, what types of things do you need to consider? What could be a possibility for your company? As a business leader, it is your responsibility to uncover those possibilities. As the recession ends and the economy turns around, what possibilities should you consider for the direction of your business?
Aepiphanni Business Solutions is a Strategy Consulting Firm dedicated to serving the needs of business leaders and executives. We specialize in helping people get into business, and stay there. We welcome clients in the personal and professional services industries, including restaurants, catering and event planning. As always, we welcome your comments, thoughts, questions and suggestions. If you are seeking a business assessment, or have further questions about creating your strategy or developing your vision, please give me, Rick Meekins, a call at 678-265-3908, or email us at [email protected].