Every business should be in search of the Next New Thing on a continuing basis. And, every business should be in the process of optimizing processes, procedures and sales strategies for their existing portfolio of business. Which should you do?
In most situations you have to do both.
All existing products and services are in the process of becoming a commodity. As a new product or service becomes more popular, changes result:
- More companies start to look at the opportunity and feel they should be involved
- This increase in participation results in lower margins
- Which brings about lower prices
- Which brings about increased usage
- Which brings about innovation
- Which lowers barriers to entry
- Which brings on more competition
- More usage
- Etc., etc., etc.
Just when you find the Next New Thing and start to make good money, others will come and follow and lower your take. So, what can you do?
This is one of the paradoxes of operating a business. You are required to operate your existing business as though it was the only thing going on (to maximize your profits), while at the same time, you are seeking to find and implement the Next New Thing. The profits from your existing business are required to develop the Next New Thing.
Apple probably is the best illustration of how to do this. Their Mac computers were on their way to “cult status” while they were developing their iPod. Then, they developed their iPhone, and later, their iPad. This strategy has enabled them to accumulate more cash than the entire United States of America’s Federal Government.
If you are like me, you are wondering what they are developing now. Is it an iMeal, an iCar, an iToilet? What will they think of next?
This Blog has not made your job of running your business any easier. Doing these two things simultaneously is hard. However, it can be fun and exciting to create while you operate.
Special Tool for the Week – Some of you may find TurboViewer helpful. (http://itunes.apple.com/us/app/turboviewer/id440584381?mt=8). It is an application that is specifically designed to allow you to view drawings (.dwg format) on your iPhone or iPad.
That is it for this week. Share your comments and stimulate the conversation.