Monitor your Industry Cycle to Manage Risk and Maximize Growth
Are you in an industry that always stays the same? Very few are. Most industries evolve over time due to changes in society, technology, or priorities. Being involved in your industry and aware of
peripheral influences that will impact your company’s future is essential for successful business owners.
Align with industry associations, read trade journals/websites, and attend industry conferences to be sure you are on top of industry trends and forecasts.
Then examine your options…can your business adapt accordingly?
Is there a related niche you can fill?
Should you merge with a competitor?
Is the industry still feasible?
Dave Driscoll describes his experience with an industry cycle in his interview with Ron Ameln of the Smart Biz Show...
[powerpress url=”/docs/audio/07.mp3″ height=”80″ width=”300″]
Transcript of this segment:
Dave: As I got older and such, then I looked at the industry cycle, particularly my business was in a converted printed paper product and particularly they happened to be envelopes. I manufactured envelopes. At the highest point, I manufactured about a billion and a half a year, sold them in the mid-western area. Well think of envelopes, now think of technology and you say to yourself “who uses envelopes anymore?” I mean everybody pays their bills online, communications through emails, you are moving PDF documents, all that stuff – and it is a very big challenge for the industry.
My advice to owners is what I learned in my transition: never take your eye off what is just beyond the horizon in your industry. You have got to be out there in front looking at “where is it going?” You have got to take chances there, too. I was so emotionally involved with my business that I denied that beyond-the-horizon view, and that is where I said I probably waited three years too long before I really sold, before I really transitioned out. So it is a lot about visibility of the ownership, it is a lot about controlling your emotions.