Being Prepared for Changing Markets

In December of 2008, I posted an article discussing the importance of being prepared for change. In that posting, one of the questions I asked was, "What will replace the TV remote control in five years?" Well, here we are two years later and we can change channels on our TV using our smart phone or IPad. If you manufactured or sold TV remote controls, would you have been ready for the change?

I remind clients constantly of the need to be prepared for changes in their markets. I am not saying that every market will go away, but during my 41 years of business experience I have seen some markets disappear and some significantly decrease in size.

There are business owners who say they are not worried because they do not sell a high-tech product. You need to keep two factors in mind. First, technology is not the only factor that makes a market shrink or disappear. Changes in lifestyle, trends, demographics and government regulations are just some of the other factors. Men buy fewer suits and sport coats today because dress is more casual than it used to be. Country clubs and fine dining restaurants are going out of business because of changing lifestyles.

Secondly, some products which were never associated with technology in the past, suddenly become part of the technological age. For example, until the early 1990s the words "golf equipment" and "technology" were never used in the same sentence. For many years, golf clubs and golf balls remained the same. Now, we use technology to change many factors of the design of golf equipment to make the game easier for both the pros and the amateurs.

Here are a few questions you should ask yourself so you can be prepared:

Has the market for my product or service been stagnant for the past five years?

What markets can I easily enter based on my company's technical and marketing expertise?

Can I easily exit my current market without having a large quantity of excess inventory and equipment?

Can my employees be easily trained to work in the new market?

How can I quickly get the resources and training I need to be profitable in a new market?

I am sure that you can think of more questions that apply to your particular product or service and industry. The key factor is to anticipate - think ahead. Being prepared to change markets may just be the one thing that saves your business.