The second reason your business is failing (2/4)

Hold it right there, you’re thinking: my business is not really failing and wait, what? The second reason? What ever happened to the first reason? 

In case you didn’t bump into the previous article in this series (which is quite likely, since I’m only publishing to a few hundred people) or in case my title was not click-bait enough to grace me with 13 minutes of your ever-in-demand attention, you might want to check it out here. But you don’t really have to.

Why not? Because it’s just as probable your business is failing for the second reason, the one we’re just about to dive into…

(If we did meet in the first article, welcome back! Did you have that extra 1-on-1 with your people? How did it go? I know...I know... it’s not easy to really connect.

Don't worry, it will take time, commitment, and discipline. You have to build trust by deserving trust. It'll come. If you want to let me know how it went or if you have any questions, feel free to reach out. – And if you somehow "didn't get to it yet"... what happened to "put people first"?!? lol!)

The echo chamber of so-called change

So, we’ve already established the simple math of why your business is failing. But we’re still going to bring it home just a bit more (in case you still think it’s just a figure of speech).

The game of business has changed. You’ve heard it a thousand times, literally. But it’s a fact. This is not just a trendy thing to say in the dime-a-dozen technologist echo chamber of “oh-my-gosh-the-interweebs-has-changed-eeeeverything!”… – and no, I’m not saying "it’s all changing ever faster " just to irk the briliant Tom Goodwin.

What so-called facts am I referring to then? (in this Trumpesque era of alternative facts we now live in...)

Well, here’s a piece of scary pie for you. Business models, the very thing that dictates the core equation at the center of your business, changed radically over the last 5 to 10 years. And we’re talking biiiiig change! – yes, I do mean like Bruce Jenner goes Caitlin here – of course, all the power to Caitlin... but the point is, I bet you didn’t see that one coming…)

It's not so much that the interweebs changed technology. It's that it changed us.

If you didn't already know, Tom Goodwin is actually the one who famously said:

Uber, the world’s largest taxi company, owns no vehicles. Facebook, the world’s most popular media owner, creates no content. Alibaba, the most valuable retailer, has no inventory. And Airbnb, the world’s largest accommodation provider, owns no real estate. Something interesting is happening.” – Tom Goodwin, 2015

This brilliant insight certainly captured our imagination over the last two years. And much has since been said about the platform revolution that we have been going through.

(If you haven’t had a chance to dive into the crux of what that platform revolution means for all of us, check out the brilliant work of Geoffrey G Parker, Marshall W. Alstyne, and Sangeet Paul Choudary in their excellent Platform Revolution: How Networked Markets Are Transforming the Economy. It’s eye-opening, to say the least.)

But Tom is also famous for poking a needle in conflated platitudes. You know the kind we keep running into all the time? (especially on the web) As Linkedin's #1 influencer for marketing and social media, he likes to grace us with daily reality checks.

Are things changing all that that fast? What changed, really? And how much is it truly affecting our business, today, right now?

He also loves to poke fun of baseless predictions that more often than not turn out to be a bust. We sure love to hype things up around here, in North America. Eventually, after getting burnt a few... or two dozen times, we learn to not fall for the hype. At least, not as much, for a time. And for the most part, rightfully so.

But all that being said, you don’t live in a cave and you therefore know the Internet did change things. Some would say to even quite a grave extent.

It didn’t take 2, 5 or 10 years but over the last 15-20 years, it certainly changed us and our businesses, a lot. Not for everyone. Not everything. But for the vast majority of people in North America, it's true that we don’t consume information, don’t connect and don’t communicate the way we used to. (you know way back when, when Albator was actually a thing… and the ultimate badass!! – excuse my French.)

But what does that have to do with you failing? Oh, yes, your piece of scary pie. Sorry, let me put that in the microwave for you. Ding! Ok, here you go…

Of course, most businesses eventually fail. But not me. Noooo. I’m special, you see. :)

It’s always been very hard to succeed at business. Almost every business started small, and if you were part of the 10-20% that made it past the first 5-10 years, you had a shot a building something great and lasting. You might even run your business into retirement or pass it on to your children...

And even if you, personally, didn't really want to ever go that big, it was comforting to look at the big boys. It was comforting to know that Wal-Mart, JC Penney and Future Shop would be around for a long time.

It made the fact that most businesses do fail more palatable. Because if just about every business you knew growing up as a kid ended up blatantly failing, relatively fast... it may have seriously deterred you from ever wanting to go into business for yourself.

Instead, you could look at the local businesses that were failing: Bob’s restaurant, Suzie’s bakery, and John’s landscaping adventure, but think that you were somehow different. You would be as smart as Home Depot, McDonald's or Sears.

You would grow just enough, not too too big, and you would work hard. You'd work smart and build a business just as solid as these big guys... in its own modest way. That gave you hope. And that's on top of the other rare local shop that also managed to somehow stand the test of time.

But nowadays, it seems they’re pretty much eventually ALL shutting down... Closed, bankrupt, gone! Right, left, and center! What gives?

It’s never been easier to start a business

So, you might want look the other way and consider these other things we call startups. If you remember the time when we just called a new business, a new business, you might like a bit of their seductive allure. What’s up with these new type of companies for these news times we live in?

It’s so much easier to start a business now. It’s so much less expensive in very many ways. They even have these start-your-business-in-7-days marathons now. That’s a thing.

Not start working on it in seven days. No. Get the idea, test it, build a model, test it, get some clients feedback, get your paperwork in order, open a bank account, pitch your product, get some clients, start collecting revenues type of thing… in a week!!! For not a lot of money too. That's just crazy, isn’t it?

So business nowadays is just so much easier, right? Things are finally going to get better now? You don’t have to fail anymore and probabilities are finally on your side now…right?

No, it's NOT. It's much easier to get started but your chances of failing are just as high. You might just get the added bonus of failing faster. Or, if you make it really big, you might get to not last all that long. That’s where we’re at.

So, not only do most businesses fail, oh yeah, now, if they were to ever succeed, they also probably wouldn't last. Great. Now what?

So, back to you. Chances are you are failing. And if you turn it around, chances are you won’t last.

Wonderful.

Ok, that was a fun article. Thanks for reading it. It was real. Have fun being miserable with your business… or cursing my name for the next minute or so…

I don’t think I like this guy. Why am I even reading this?

Lol! Now, hold on. We’re not here to whine, you or me. You don't play to lose and I’m not in the business of just saying stuff to say stuff. I want to give you a piece of something. A real seed for you to plant. Something that will need a lot of water, some good soil and awesome fertilizer. But something that with a lot of sun, and even a bit of love, might actually grow into something.

So, here we go with the magic beans. Why is your business failing? Are you ready for it? You must have guessed by now. Yes, here it is:

embrace change.

Yup. You heard me. Two little words that can change EVERYTHING. Embrace. Change. Embrace change.

If you don't, guess what? Someone just stole your cheese. And you probably don’t even know it yet. Embracing change is not a school of thought, a style, a value, something you feel like doing or not doing. It is the ONLY way to survive. And if you ever want to thrive, you HAVE GOT to embrace change.

Embrace change. Ok. Yeah, sure.

People and organizations (you, me, our people, and the businesses we build or work in) tend to resist change. And we won’t dig too deep into it here but there are even good reasons for that.

If you invest your energy into what works, you can reap consistent results. Investing energy, focus, and attention into trying something new does however divest from what works. So, in the uber-competitive world we live in, one might argue that those "wasted" efforts may ultimately cost you the little edge you needed to outdo the competition or outdo yourself. Some may argue that you ended falling a little short because you didn't focus on the core business enough. And they could be right.

On the other hand, we all get that if you don’t change, you do become obsolete. Someone will surely come along and disrupt your business. In a small or big way. But some new company, new product or new process will make it harder for you to be as successful as before. So, you do have good reasons to not really want to change. But you also know that not changing is risky, very risky over the long term.

Ok, fine, so let’s agree to not change/change. Right?!

What the ?!?!

Grrrr! Change stuff, then, I guess. Ok. But change what exactly?

As much as I’m making fun of it, we really do come up with these so-called systems to change-but-not-change. You embrace “innovation” in some way or another around your business. You talk about the benefits of change and progress. You agree to change some things but not others. You open your mind. And sometimes even open your wallet, a little. But mostly, not so much.

And how is that working out for you?

Well, if you do face the harsh reality... the cold hard math that says you're probably already in the process of failing (sooner or later). There is a good chance then that change has not really been your BFF, if we're being perfectly honest here.

Let's face it. Change is a bit like your kid’s first boyfriend or girlfriend. You like the idea but you don’t like the idea. You embrace it, to some extent, but there are things you didn’t have to worry about when it wasn’t around…

Ok. So, what’s the plan now?

All right, here we go then. Are you ready for it? This is the part where the brain massage really hurts, but it’s for your own good. Let’s relieve some of that tension now:

Change everything, all the time.

What?!? How can that possibly make any sense? That is probably one of the stupidest things you've ever heard. – And yes, I know, that’s probably after checking your Twitter, Snapchat, Youtube, and Facebook feed today... and every day before that, so the bar is pretty high… but yet…

But I mean it. You can and must change everything. All the time. You must EMBRACE change.

Arrgh! Is this sponsored by Motrin? 'cause this is starting to feel like a throbbing headache…

So how does that work? In real life?

Think Dr. Deming. Think Michael Gerber. Think Eric Ries. Think Alex Osterwalder and Yves Pigneur.

Michael Gerber graced us with his famous framework to innovate, quantify and orchestrate ever since the early days of the E-Myth and the ensuing decades of teaching people in business to build systems around change.

The premise is pretty simple. Just build a systematic way of doing things in your business. Once you know why you want to do that thing you do and how you’re able to do it, just make sure to capture that somewhere. Call it a Standard Operating Procedure, a field guide, a Modus Operandi or a manual for “how we do things around here” as Gerber puts it. It doesn’t matter. But do it.

And once you have a set way of doing things that works, make sure that you’re measuring it. Find a way to keep track of how things work in your business. Yes, with actual numbers and real data. Doesn’t have to be fancy or perfect or technologically advanced or expensive. Just measure stuff. Get a baseline. Make a real effort.

Now, whenever you or someone thinks they can improve any of it, try it. Test it. Someone thinks something could be done differently? Find a simple, cheap way to test it.

You don’t think it’ll work? You actually know it won’t work? Perfect. Prove it. Prove the change wrong. Be creative. What is the easiest, simplest, fastest, most cost-effective way for you to prove that it won’t work? Or, for someone on your team who thinks it might just work, to prove that it will?

Test it. Measure it. Is it better or worse? If it’s better, you find a way to change how you do things. If it’s worse, you just validated, once more, your current process.

Sounds like a lot of work? Yeah. Running a business sure is a lot of work. Sorry. :)

Why do I keep reading these articles? I thought this was gonna help!!

Sounds like it might be annoying at times. Yes. You know what else is annoying? Being one of the 9 out of 10 businesses that fail. That’s much more annoying. And much more common.

Embrace change.

You know what good will come out of it? Once you start really embracing change and experimenting all the time, it gets fun. It’s exciting. It’s like opening a series of envelopes every morning and one has a big fat check with your name on it. Wouldn’t you open a few envelopes every morning if one had a substantial sum of money in it?

Of course, you would. So, stop denying yourself.

You wouldn't open those envelopes one a month at a special meeting. You wouldn't limit it to a yearly "open the envelopes" challenge. And you sure as spit wouldn't let everyone handle it but you. You would be on those envelopes every morning like white on rice. If you get my drift...

You're thinking, yeah ok, opening envelopes with money in them is fun, but seriously, how will those "tests" and "experiments" really help my business?

First of all, it will make your business more immune to the change that’s happening around you. Fear is not super fun it turns out. It’s insidious, it’s creepy and draining. And yes, my friend, you have, for the most part, been living in fear.

No more fear. Let go.

No fear, no fear... I’m afraid that’s not going to work around here! :)

What if you could really do that? What if there was an actual way to find the time, the headspace, and the means to try stuff all the time? And what if, out of that discovery, new better ways of doing things could emerge all the time? What if you can really find a way to improve your business by 1% every month, every week...every day??? Oh, wow… that is some serious compounding revenues!

But that’s not real… Nobody can really improve his or her business by 1% a day, or a week…. Can they? Are they? At least not a small or medium business...

You bet they can. And you bet they are. Right now, as we speak. And THAT is one of the reasons THEY are the 1 in 10 that might just make it. That is one of the few things that gives them a fighting chance, that would give you a fighting chance.

You’re not convinced? Think evolution for a second. Nature is built from millions of processes inside every living thing. And every once in a while, something changes, something mutates. Here goes a longer beak, a different fur color, a new chemical release. And very often it doesn’t work out. But there is always a new thing that works out better than the old thing. Because environments also change. So, creatures have to change to survive in it.

Do that for millions of years and you go from an ape to a human. Don’t do that and you go extinct. Which process would you rather have in your own little kingdom? Wouldn’t you rather include the systematic, constant, unrelenting change of evolution?

Yeah, I thought you might. So, start embracing change in your business too.

Can you succeed at business without embracing change? Of course, you can. Many are. Turns out very few things in life are absolute. But you will not succeed as much and you will not last as long. Think about the math of that. If you're in business for the right reasons, it's the math of your livelihood... so it might be worth a little rework after all.

Go change.

How can you get started? That’s easy. Think of the last thing someone wanted to change in your business, but was denied. Anything. Anyone. Got one? Ok now go see that person and figure out a way to test that assumption, very quickly, and for very little. And do it. Don’t procrastinate, right now, go! At least talk about it. See what happens.

Have a hard time doing it quickly and efficiently? Give us a call. We’re always happy to help.

• Get yourself a copy of the excellent E-myth Revisited or Emyth Mastery by Michael Gerber.
• Discover or rediscover the Lean Startup by Eric Ries.
• Enter the fascinating world of Business Model Generation and Value Proposition Design by Alex Osterwalder and Yves Pigneur.
• Or ask my friend Ed Brimmer to tell you about Dr. Deming's Road to Continual Improvement.

And here's the original article on The Battle for the Customer Interface in TechCrunch (for the insightful quote by Tom Goodwin).

Here's the rest of the series, in case you missed it... and if you really want to hate me... :)

• The First Reason your business is failing (1/4)
• The Third Reason your business is failing (3/4)
• The Fourth Reason your business is failing (4/4)

If you want to keep exploring the power of embracing change...

• The simple math of your livelihood or business 101(1+x)^n=1+nx/1!+(n(n-1) x^2)/2