Think about the most innovative companies you know. How many of them made it as far as they did by playing it safe? Probably zero. However, in today’s business world, it’s more common to play it safe than to take risks. Here are a few decision-making faux pas that are causing businesses to fail.
Failing to Adapt
Once upon a time, businesses rarely changed their business models. If it was working, why bother changing it? Even when faced with major competition, many CEOs choose to strengthen their current business model instead of trying something new. Kodak is a prime example of this. Putting all of their focus on cheap film cameras, they didn’t update their business model when digital photography came onto the market.
Failing to Anticipate
This has caused multiple companies to claim bankruptcy, regardless of how lucrative they once were. Technology is constantly changing and it’s integral to stay up with the time, whether through new e commerce web design or online marketing tactics. Businesses that don’t bother anticipating the changes that are right around the bend will quickly fall behind. Kmart is a perfect example of this. The company waited until 2000 to invest in a major IT plan, but by then it was too late.
Failing to Learn
Some businesses may choose to not adapt, even if they know they should, but other companies simply pretend that nothing at all is changing. Ignoring the fact that there are new things to take advantage of doesn’t change the fact that the industry is moving forward and leaving your company in the dust. A business shouldn’t just keep up with trends, but they should also be able to quickly modernize their processes.
Failing to Execute
Frightened by various risks, many CEOs delay executing a change. By postponing a decision, though, rapidly-evolving technology will be on to the next thing while you’re still weighing your initial decision. Even if you do decide to take action, you’ll be, once again, behind the curve. Executing is just as important as deciding.
Playing it safe may be costing you more than you bargained for. Technology isn’t always easy to keep up with, but it’s important that every business strives to stay modern. Luckily, that same technology will help you adapt and scale when necessary.
Article Submitted By Community Writer
