The business world has produced a veritable graveyard of once magnificently successful companies that came, conquered and thrived – but ultimately perished.
In many cases, those businesses share a common reason for their demise: Times changed. They didn’t.
“I’ve always been fond of the saying that if you don’t like change, you’re going to like irrelevance even less,” says Adam Witty, a successful entrepreneur and the ForbesBooks co-author of Authority Marketing: Your Blueprint to Build Thought Leadership That Grows Business, Attracts Opportunity, and Makes Competition Irrelevant.
“Over the years, many businesses discovered they didn’t change quickly enough, much to their chagrin. Others realized their old business model no longer applied, and they did adapt.”
In the last decade or so, media companies especially have had to navigate their way through an extraordinary disruption of their business models, says Witty, who also is the founder and CEO of Advantage|ForbesBooks (www.advantagefamily.com).
“Reading habits and advertising habits shifted,” he says. “This meant media companies needed to diversify and be innovative if they wanted to continue to thrive.”
Witty was involved in such a diversification recently when his company announced a partnership with American City Business Journals, the publisher of 44 weekly Business Journals in cities across the U.S. Through the partnership, American City Business Journals is branching out into the book-publishing field with the creation of Business Journals Books, an enterprise that will be operated jointly with Witty’s company.
“This is an exciting new way for them to be creative and create a new revenue stream for their business,” Witty says.
With COVID-19 and the 2020 recession forcing companies to navigate their way through even more changes, Witty says businesses that want to avoid tumbling into irrelevance need to:
Review and rank their products. A few years ago when Witty’s company did such a ranking, he realized one product line the business had offered for years didn’t measure up and needed to go. “It was hard to deliver, had low gross margins, was extremely people intensive, and had very limited scalability,” he says. “The time, energy, effort and capital we were investing in this product line were taking away our ability to invest in new products that would be more scalable and more profitable.”
Always be on the lookout for new ideas. What worked yesterday may not work tomorrow, so savvy business leaders are always open to new ideas for bringing in revenue, Witty says. “You should also encourage employees to suggest ideas,” he says. “Maybe a lot of those won’t work. But the more ideas that get tossed around, the better the odds something will prove a winner.”
Favor facts and data over opinions. No matter how much an entrepreneur loves the business plan they used originally to launch their business, they need to make decisions about the future based on facts and data, Witty says. “You must deal with the way things are, rather than the way you want them to be,” he says. “Facts and data will tell you the way things are.”
“Because of COVID-19 and the recession, a willingness to adapt to changing consumer habits and ways of doing business is probably more important than ever,” Witty says. “The businesses most likely to thrive coming out of this are those that have a plan, but also remain flexible and are willing to change that plan as the circumstances around them change.”
Adam Witty, co-author with Rusty Shelton of Authority Marketing: Your Blueprint to Build Thought Leadership That Grows Business, Attracts Opportunity, and Makes Competition Irrelevant, is the CEO of Advantage|ForbesBooks (www.advantagefamily.com). Witty started Advantage in 2005 in a spare bedroom of his home. The company helps busy professionals become the authority in their field through publishing and marketing. In 2016, Advantage launched a partnership with Forbes to create ForbesBooks, a business book publisher for top business leaders. Witty is the author of seven books, and is also a sought-after speaker, teacher and consultant on marketing and business growth techniques for entrepreneurs and authors. He has been featured in The Wall Street Journal, Investors Business Daily and USA Today, and has appeared on ABC and Fox.