Is It the Economy or Your Business Model?
The economy is a topic on a lot of people’s minds these days, and if the average citizen is concerned, of course you as a business owner and leader would be concerned too. You may be downright nervous, but if you have a solid business model and have not compromised in the areas of creativity and innovation, then there is light at the end of the tunnel.
Large companies are confident in making executive transitions in these shaky economic times because they haven’t lost sight of their original ideas. These companies are confident in the business model that was the inspiration for starting a business in the first place, and regardless of what’s happening in the news, they stick with the plan. According to a Bloomberg.com article by Thomas Black, U.S. companies are hiring new chief executive officers this year at the quickest pace since 2005. Mr. Black also mentions a study by the search firm Crist/Kolder Associates that shows turnover is running at a 13% rate this year (according to a study of 669 large companies). Leadership transitions are not usually done while the economy is in such a slump. Does this show confidence in the future of economic growth or in their business model and strategy?
What these changes do show is that you can’t believe everything you read, hear, or see. Stop blaming the economy for your lack of growth. Unrealized growth is not the result of a bad economy, more than likely it’s the result of a bad or outdated business model. It doesn’t matter how good or bad the economy is, all companies want and need growth. Most new companies start as an innovative new idea for a product or service-and your company is no different. Your company’s original creativity is what put you in business, so I find it ironic that lack of innovation and creativity may be the very thing preventing it from growing. Innovation keeps you relevant. If your company’s strategic planning is not focused on innovation, it cannot grow in a sustainable way-in this economy or any other. Companies like Apple and Google have grown into veritable empires by creating a corporate culture of creativity and innovation and translating their internal wellspring of ideas into successful growth strategies.
Stop focusing on the woeful tales of the economy and start focusing on your business model. If you have a solid business model and continue with the creativity and innovation that launched your business in the first place, you should be able to weather any economic storm.
Howard Shore is a business growth expert who works with companies that want to maximize their growth potential by improving strategy, enhancing their knowledge, and improving motivation. To learn more about him or his firm please contact Howard Shore at (305) 722-7213 or [email protected].