At the beginning of the year, many business owners will have been taking time to think about not only the year ahead, but the long-term viability of their businesses.
With rapid change and multiple existential threats impacting different businesses in different ways, some good questions to ask are: Do you expect your market and/or customers to be subject to fundamental change? Will your business be viable in ten years’ time if it continues on its current trajectory? Do you have the option of carrying on as you are and hoping for the best, or do you need to make some proactive (and potentially risky) changes to give your business the best chance of continuing into the future?
With pressure from consumers for reinvention intensifying, it’s no surprise that we are seeing businesses adopting new technology. Air New Zealand, aware of its reliance on fossil fuels, is looking at new ways to power their aircraft fleet. They have just purchased their first all-electric aircraft which will operate cargo routes starting in 2026.
Other companies are pivoting into new areas to meet changing consumer demands. For example, consider the amount of ‘plant-based alternatives’ available today, with fast food restaurants like Burger King offering an entire range of plant-based meat.
It’s no secret that climate change and sustainability are key focuses at the moment, and while much of the change is driven by government, the reality is that consumers are forcing these changes as they take into consideration whether products have been ethically and sustainably produced. As a result, it is more and more common for a business to adopt climate-friendly alternatives, showing a willingness to accept a trade-off of financial return for sustainability outcomes.
The changes happening now are not just something that the big companies need to worry about. Small businesses are more likely than their larger counterparts to feel their firm’s viability threatened, and for good reason. The shifts over the coming decades will have flow on effects to all facets of business. Think electric cars – what is a mechanic doing 20 years from now, or a petrol station operator, or the person that leases the land to the petrol station?
By taking the time to reflect on the forces of change in your business environment, you place yourself in a much better position to not only survive the next few decades but to take advantage of the opportunities change presents.