Every industry undergoes change. Today, these changes happen rapidly due to the widespread adoption of technology, innovation
Before we answer this, let’s look at one example from the evolution of the real estate industry. In 1998, I added home inspections to my building repair and remodeling company. The industry was so new, I had to do presentations inside real estate offices just to explain what a home inspection was.
To perform an inspection, I had to visit each office and pick up spotty real estate information printed out on numerous pages. To find the property, we relied on inaccurate verbal instructions and fold-able maps. Inspections relied solely on visual surveys with manual inspection tools. Reports were often hand written and then mailed/faxed to clients. Payments were sent by check or via hand-swiped credit card machines.
Within a few short year’s directions became instantly available thanks to GPS. Property information was all moved online and supplemented with real-time information via google earth. Visual inspections are supplemented by drones and digital devices that can see through walls. Reports are documented via tablets sent instantly to a client thanks to unlimited mobile data. Payments are done via terminals connected to smartphones with face to face on-site meetings replaced via video chats.
And over the next decade, I watched many competitors come and go. Most of these failed because they refused to keep up with changing technology even while their clients didn’t.
Simple things like adding digital photos to reports. Using short video clips to explain difficult concepts. Using drones to digitally document multiple story or dangerous to reach places. Upgrading inspection equipment to include thermal imaging devices and digital readers. And widening the acceptance of multiple payment and report delivery options.
When to make changes in small business
1: Stay current with industry trends
Joining a trade organization, subscribing to pertinent periodicals, reading up on new trends, and staying on top of where your industry is heading is key to knowing when and how.
2: Keep an eye on your competition
To stay on top means becoming better than your competition. To do this you need to keep track of what all your competitors are doing. What services are they offering? What’s the different pricing points? How are they serving customers and gaining new clients? Whose entering the market? Knowing the answer to these will help you know when it’s time to make changes in small business.
3: Be aware of customers’ needs
Listening to praise may help you feel better. But listening to and responding to complaints will make your bottom line feel better. In other words, listen to your customers. Find out what they need and fill those needs. Find out what they don’t like and change accordingly. Customers stay with what they like and are committed to the best value options. And they will tell many others, when you exceed their expectations.
4: Stay aware of technological advances
Understanding which new technological advance is a game changer is vital for your business to keep thriving. Even though staying on top of rapid technological development can be exhausting. Being the first to purchase and adopt every new technology will ultimately destroy your margins. Especially since technology is usually deflationary (meaning it gets cheaper over time). The key to knowing when to adopt a new technology is to answer these questions.
- Does it make your product or service better?
Will it cut production time and cost?- Does it make delivery faster and safer?
- Would it work well enough and have the life expectancy to deliver on its promises?
- Does it enhance customer experience, employee’s capability and make your overall life better?
- Can you afford it, or not afford to own it (meaning it puts you at a disadvantage)?
In the end, businesses either adapt or die. Even if you’re on the top of your industry right now, it may not always be that way. Just try to find your local Sears, Kmart, Borders, Toy’s r Us, Woolworth, Sports Authority or BlockBuster. Oh yeah, you probably can’t.