I read publications, punditry and blogs focused on a number of different industries.
I hope you do as well. Reading only the trade publications from your industry is dangerous, dangerous, dangerous.
For example, there’s an awesome blog post by Ken Doctor based on comments made by Netflix founder Reed Hastings“.Â Go read it (< 1000 words) and slide back here. The link will open in a new window.
I don’t have a digital business
Some of these things might be perceived as applicable only to a “digital business”. As you readÂ “Savor the economics of digital distribution” or “presentation revolution is still to come”, you might wonder how these could impact your blacksmithing business.
I think if you look hard enough – every business probably has a digital (ie: tech-related or internet-enabled) component. Â If yours doesn’t, maybe it should…
I see you out there bouncing up and down in your chair. You disagree.
If you’re a guy whose office is a F-250 full of tools, think a little about estimates, appointment scheduling, material ordering / delivery, drawings, invoices, training and safety.
Enough of that…Let’s discuss Reed’s lessons.
Spend your time on tomorrow, not today
This is all about being strategic. Delegate today, as much as possible. If you get bogged down in the “crisis of the urgent”, you’ll have a very difficult time focusing on the long-term strategic needs. You can’t (shouldn’t, at least) manage your business “paycheck to paycheck”, even if your cash flow currently feels that way.
Savor the economics of digital distribution
In All the President’s Men, it was “follow the money“. In your business, it’s “follow the paper”. As you read about the $600 million Netflix currently spends on postage and the labor involved in DVD quality control, consider the costs and labor you incur by shoveling paper around.
Even if you are legally obligated to keep that paper, you can make changes that allow you to handle it ONCE and thereafter refer to digital copies until the paper copies are (possibly) needed. Leroy Schulz suggested I get a ScanSnap several years ago. I finally did. UNREAL. If you deal with a lot of paper, just get one. That’s just one example of a small, but substantial change you can make to unchain yourself from the paper.
Don’t sweat the timeline
The time to be visionary about what your clients need is NOW. It is NOT when they (finally?) realize they need that great idea you had years ago.
That said, you should expect to have to educate your customers and your industry about why that visionary thing is so important. It will take time. Take advantage of the visionary advance while you can and sell it as soon as you can show value for it.
No one asked for an iPhone, yet Apple has sold millions, transforming their financials and leveraging what they’ve learned throughout their product line. Visionary. Again.
Everyone reading this is capable of being that visionary in some aspect of your industry. You just gotta put yourself in the customer’s place.
Play chess, not monopoly
Strategy, strategy, strategy. Sure, you can fill a lobbyist’s wallet and invent a monopoly, but eventually that advantage will somehow end. It’s tough (though not impossible) to legislate innovation out of business. I’m pretty confident that entrepreneurial innovation is smarter than the collective intelligence of Helena or DC. It’s certainly easy to move faster than any legislature.
If you put the customer and their wants/needs at the center of your strategic thought, you *will* succeed. Good chess players think 2-3-4 moves ahead. Great chess players are thinking a dozen or more ahead. Think about your business that way.
The best way to create what appears to be a monopoly (in the eyes of inferior competitors) is to deliver amazing every single day and improve with every interaction, every hour, every shipment, etc. Chess is no different. The best can play and innovate in their head, during the game.
The presentation revolution is still to come
For many of you, this is about mobile, mobile, mobile. Yes, kinda like “Location, location, location.” Â But it isn’t just about that, so don’t think solely in that way.
How many ways can what you do be delivered? If your business seems immune, think about the overhead of doing business with you. Are you causing more of it? Do you invoice on paper or PDF? Do you mail a check (requiring a trip to the bank) or do you pay some other way? Do you invoice (or pay) manually every month when it could be automated? (ditto for payment) What about ordering? Stock inquiries? Appointment scheduling?
Do easier, faster, smarter. Without cutting quality.
Working in a place with people you want to work with and people who value excellence. It’s easy to slough off as “touchy-feely”, but if you’ve worked in an environment that values quality and improvement, you’ll never again feel comfortable in anything else (well, unless you’re a slacker).
And finally, Walmart.
Ken’s comment about Hastings’ response to why Walmart didn’t kill Netflix – and why it shouldn’t kill your business – speaks volumes: “Itâ??s not the stuff, itâ??s what you do with the stuff to please customers. Netflix isnâ??t about simply getting you a movie. Itâ??s the recommendation engine and lists, the customer-pleasing, no-late-fees (remember when this was a huge issue?), its easy-to-use interface and its social/sharing emphasis, among other features that let it distinguish itself in consumersâ?? minds.”
If that quote doesn’t spawn thought processes to revolutionize your industry, then you just aren’t thinking hard enough.