When things are going well, there is little time or appetite for reflection or assessment. The focus instead is on maintaining momentum, maximizing the opportunity and avoiding the secret to failure, colloquially known as “messing with success.”
During a hot streak (remember those?), small imperfections are often overlooked, dubbed distractions or missed altogether. When times are good, there may be funds but rarely the appetite or perceived need to make significant changes.
This is not one of those times.
Each day the news is filled with reports of declining sales, weak demand or another business closing its doors. It is clear, whatever the economists say, that the furniture business is in a recession.
Clearly the industry is confronting a time of great challenge. The flip side of challenge, however, is opportunity.
When things aren’t going well, the need for change becomes crystal clear. The flaws in a business model, a marketing strategy, an assortment or pricing strategy all become open to reassessment … because the alternative is to join the ranks of those closing their doors.
It should come as no surprise that many game-changing businesses are started during economic downturns. Just ask Microsoft, Netflix, Airbnb or Uber, to name just a few. Each was founded during a serious economic downturn.
During times like this, when legacy businesses are being challenged, consumer-need gaps become most apparent. Downturns often represent the turning points of economic evolution, a time when inefficiencies in existing systems are exposed, unfulfilled needs highlighted and potential news solutions are revealed.
This is one of those times.
The most common response to a challenging business environment such as we face today is to draw inward; to cut costs, head count, facilities. You know the drill. And while it’s certainly prudent in this environment to keep a close eye on cost, it’s just as important to look beyond tactical short-term considerations to assess the strategic relevance of your business in a changing retail ecosystem.
The foundational principles that defined your business at its inception have likely changed. Consumers’ options, the way they shop, the way they obtain information have all changed.
To ensure your business has kept pace and is prepared for what’s next, it’s critical to understand whether those things that once made you stand out are as relevant to today’s consumers as they were to their parents or grandparents.
How do you stack up, not just against the store down the block but against the full range of options available to consumers? How will people who have never shopped you find you? Are you advertising where they are, or do you expect them to find you where you are? If it’s the latter, that’s a problem.
It’s said that necessity is the mother of invention. Today’s retail environment has created a necessity for reinvention. The best time to start that reinvention was 10 years ago. The second-best time to start is today.