News Flash! Business Will Shrink!

Today I read that Facebook is predicted to fail. Not immediately, but it has been suggested that it will be 20% of its maximum size by December 2014. The cause of the demise is that younger users have been moving away. Read more about it here:http://www.abc.net.au/news/2014-01-23/facebook-could-fade-out-like-a-disease-researchers/5214524

And there seems to be a debate about the value of Twitter. The company, not the tweets you send out. It is currently valued at 70 times its annual revenues. Refer http://www.abc.net.au/news/2014-01-22/kohler-what-is-twitter-worth/5212376

So what does this mean for you and your business? There are two major points that I think every business owner needs to consider.

The first is that any business can fail. The biggest business on the planet in your industry is not safe. No business is too big to fail.

The second is the power of the customer. Your business must provide a need (or want) and take steps to make sure that the customer is happy. Existing customers have a habit of leaving. They change jobs, move house, retire … there are many valid reasons why their situation changes, but they will – sooner or later – stop buying from you. That just means you never stop looking for new customers.

Governments can get away with not always being polite because they legislate for people to use their services, they do not compete.

There are a number of attributes a successful business must have – and one of those is innovation. In this case innovation means additional products or services that add value to your customer, not additional problems for your customer.

How can you treat your customers better?

Starting a business needs more than just a good idea

I suspect that nearly everyone thinks of starting their own business at least once in their lives, and some are serious enough to make the attempt. Statistically, most will fail in the first 12 months, and most of the remaining businesses will fail over the next 12 -24 months. That doesn’t mean “Don’t try”, it means “Be prepared, and make sure you are one of the survivors”.