The complacent entrepreneur, enjoying excellent sales and a big influx of profits may not realize that success today may not necessarily mean a successful tomorrow. Complacency in business can spell eventual doom in big capital letters for even the most flourishing company.
- You Won’t Keep an Eye on Your Competitors
Most entrepreneurs are keenly aware that competitors will always be snapping at their heels and there’s a constant need to stay one step ahead. However, the complacent entrepreneur feels satisfied with the way things are and doesn’t push for greater success, try to formulate a way to operate their business more efficiently, or generate new business.
Entrepreneurs should make it their business to find out what their competitors are doing. Does the competitor have a superior business strategy? Do they do the same job with fewer costs? Evaluate the difference between their business methods and your own. Figure out if it is possible to take what you’ve learned from others and make improvements in your business.
- You Will Be Less Able to Weather Economic Challenges
Sometimes widespread economic challenges force business owners to rethink their strategy and develop a leaner operating costs to help their business stay afloat during recessions. The complacent entrepreneur will not attempt to stop company overspending and may be faced with cutbacks on lines of credit.
- Products and Services Will Become Outdated
It is essential entrepreneurs stay abreast of current trends and not allow their products, services, or business strategies to become stale and outdated. What sells well for your company at the moment may not be a hot product a few years from now, or even a few months from today as new trends continue developing.
An example is the huge international trend of consumers turning away from consuming gluten. This rapidly expanding trend has challenged the restaurant and bakery businesses to start developing products that cater to this new way of eating. As the general populace becomes more health conscious, the demand for healthier food will continue to rise dramatically. The food companies that don’t acknowledge the growing demand for this type of product are turning a blind eye to a huge share of potential profits.
In fields such as real estate, trends will continue to prevail as certain locations become more desirable and others decline in popularity. The smart property investor will network and learn of any changes in the market that could dramatically affect prices. For example, if a section of land is rezoned to allow a noisy factory to be built in a quiet area of town this could cause a majority of the current residents to move away and property prices to fall, forcing the area into a decline. If property investors can acquire advance knowledge of the rezoning and the proposed building of the factory, they will be able to sell their investment property before the decline in prices.
- You Won’t Connect With Your Customers
Never be complacent when it comes to your customers. Every business owner must have a clear picture concerning what a customer truly wants from a product or service. As a business owner, make it your business to find out as much information as possible. Don’t do this just once, but continue on a regular basis. Speak with your customers and get honest feedback. Their true opinions can steer you toward improving your product or service. Take the knowledge and implement it into your business strategy to ensure continuing success.
“Remember, wealth has nothing to do with money, success has everything to do with failure, and life is as simple as you make it!” – John Dessauer