Most entrepreneurs love it when things change. That's what makes us entrepreneurs, right? If we didn't love change we would still be working for "the Man" doing our best to keep things status quo. Actually, to be more accurate, entrepreneurs love influencing change or having some level of control over how to react to change when it hits the business or industry.
There are two ways to classify change:
Cyclical Change: Neck ties get wider and then skinnier and then wider again. Hair styles get longer then shorter then longer again. 80's metal hair bands should be cycling back around soon...right? Anyway, I bet you get the idea. Essentially, things come into favor then go out of favor and then come back again.
Structural Change: Here's an example...the IBM Selectric typewriter. Is it coming back? I don't think so. How about the horse? Is the horse going to replace the automobile? I don't think so unless aliens attack us and use their advanced weaponry to render all of our machines inoperable. We've had a structural change that has impacted businesses in the past 15 years. It's called the internet.
My Point: It's important to be thinking how change impacts your start-up. What if you are working on a product or service that will be obsolete in the next few years. Paying attention to the different types of change that may be shaping your industry can improve the sustainability of your business.
Action Plan: Make a list of as many changes as you can in at least the following areas -
- Technology - what technology changes and new innovations will impact your customers, vendors, etc?
- Economic - what economic changes are shaping your industry? For example, how is the weak dollar going to impact your customers, vendors, etc?
- Demographic - what changes are shaping your customers buying habits? For example, if your customers are closing in on retirement then how will this impact their purchasing habits?
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