No matter what market you operate in, future-proofing your business should never be under-valued.
Here, we have outlined 6 ways in which you can ensure your company is ready to face any challenges the future may hold.
1. Research, research, research
What are your competitors doing? Who are your customers? The answers to these questions can, and will, change so doing regular research into your market and your audience is key to long-term profitability.
Virgin founder, Richard Branson said, “Just because a brand has been around for decades, doesn’t mean that it’s right for today’s marketplace.” Shopping around, using your own products or services and going out to meet your customers will tell you a lot about your business and the perception of your brand in the marketplace.
Source: www.virgin.com/entrepreneur/richard-branson-four-ways-to-future-proof-your-business
2. Don't lose sight of what your brand represents
Think about Burberry – a global luxury brand, recognised for its signature trench coat. But when their more affordable products began to increase in popularity with consumers across multiple socio-economic groups, Burberry’s image was, arguably, becoming too accessible to the masses.
In 2006 a new CEO, Angela Ahrendts, brought focus back to the brand’s classic range of clothing. They stopped targeting such a wide demographic and brought their marketing efforts back to the affluent audience - an approach that doubled Burberry’s revenue within five years. Ahrendts claimed, “We’ve always said we’re not immune to the ebb and flow of the macro economy, but that doesn’t change our vision."
3. Keep up to date with technical advancements
Fujifilm and Kodak both identified the demise of film photography long before digital cameras emerged in the 1990s. However, Fujifilm faired far better when it came to embracing new technology and realising how this would change the face of photography forever. Fujifilm chose to diversify and ventured into adjacent growing markets, such as LCD flat screens and healthcare diagnostic products, in addition to creating a ‘Document Solutions’ business.
Kodak, on the other hand, could be accused of being complacent for failing to respond to technological advancements. As a result, Kodak has suffered bankruptcy while Fujifilm continues to prosper.
Although this is an extreme example, it shows the value of keeping up to date with technology and making sure you’re nimble enough to act. Ensuring your business strategy lays out a ‘plan b’ could be the difference between success and failure. On a smaller scale, consider how ever-changing payment methods and cloud technology could help you to future-proof your business.
Source: www.theinnovativemanager.com/story-of-kodak
4. "Data will set you free"
This is a mantra adopted by car giant Ford and one that turned the company around, taking them from billion dollar losses in 2008 to a reported $1.2bn Pre-Tax Profit in Q3 of 2014.
The key to the turnaround was detailed data analysis. Sales performance is an obvious focus area, however, have you considered combining that information with your social media monitoring? It worked for Ford, after all. This channel is a great way to hear exactly what your customers want and think – they don’t hold back and the information is free.
5. Respect the 80/20 rule
Rewarding loyalty and investing in long-term relationships will pay dividends in the future. You’ll be aware of the 80/20 rule whereby 20% of your customer base will be responsible for 80% of your turnover, and vice versa. While customer loyalty used to be synonymous with coupons and point cards, consumers expect more these days. According to Robert Passikoff, contributor to Forbes, the brands with the highest levels of customer loyalty are those driven by emotional engagement, that deliver against increasing expectations and provide meaningful differentiation from their product to any other.
In a digital age where it is so easy to compare and review brands, you need to have a clear vision that sets you apart from your competitors. The 2014 Brand Keys Loyalty Leaders List revealed that the following brands have the most loyal customers; Apple, Amazon, WhatsApp, Google, YouTube and Kindle.
Source: www.forbes.com/sites/robertpassikoff/2014/10/20/the-2014-brand-keys-loyalty-leaders-list
6. Future-proofing finance
Traditional overdrafts and loans have their place, but they can often be inflexible to the changing demands of a business. Alternative forms of funding are steadily rising in popularity, often providing a more dynamic and flexible solution to traditional sources.
Invoice finance in particular is being used by thousands of forward-thinking businesses across the country. It responds to change by adapting in line with business needs, making it an ideal funding solution to protect your firm against unforeseen changes, such as the need for additional working capital or seasonal trading fluctuations.
To demonstrate, it was recently reported in the national news that hundreds of milk farmers were expected to incur serious challenges having been informed that payment from First Milk, a major dairy product manufacturer, was to be delayed by two weeks. This will seriously impact on cash flow but the farms that have future-proofed their business with robust financial support will be the ones that fare best from this recent set back.
