Now, the question is how we can prepare ourselves for successful managing of the company, no matter what type of company it is or whether it is small or bigger one. Managing this thing is your own responsibility as an entrepreneur. It is simply pressure to prepare for the future.
Now, what remains us other except to start to dealing with the planning for the future, or predicting the future? So, we start with the prediction of sales, prediction of costs / expenses, marketing plans, business plans and so on. Quickly will come next year or the next few years. You come to the conclusion that nothing from your plans is near the reality, or things simply don’t happen as you have planned or predicted.
Unpredictability of the Future Case
Even the most traditional businesses have such a problem. It is the case because they are totally focused on traditional techniques of predicting the future. In most of the cases, these techniques are incorrect.
Three years ago, an entrepreneur told me, that his business is such as is, because there will always be a need for his products. It is food, and people will always need to eat. Today, that business does not exist. Simply, because the entrepreneur then used predictions that were based like all predictions, “Last year I had this amount of income, the next I will have X% more than last year.” When I’m already here let’s cover some reasons why it happened that was happened because of this type of entrepreneurial mindset.
3 Reasons Why Traditional Prediction Techniques Can’t Help You?
- Such a way of thinking doesn’t recognize the appearance of competition. Not any type of competition, but competition that will give a completely different value. It doesn’t matter that in our case we are talking about food industry where changes are less likely. They are still possible. The new competition except the value that will offer, it will also offer other things. It can be different and innovative approach to communicate with customers, innovative sales, innovative working processes and so on. All this will affect and here affected on the failure of a business that until this time was successful business. So instead of increasing of his income for X% they started to lose money with a factor of 2X.
- Such a way of thinking doesn’t recognize changing needs of customers. Customers are not same today as yesterday, nor tomorrow will be same like today. It’s the only thing that is known about the customers. The entrepreneur in our case has not realized yet that those customers who are with him today, tomorrow they may not be. They want changes, have a changing flavor, they want new things. For their money they have the rights to afford what they want, not what someone will offer to them. Because customers were not included in the plans for the future, or predictions of the future, they simply can’t meet their new needs in this business, but in some another.
- Such a way of thinking doesn’t recognize changing technology used by business processes. Yes, except the competition and customers, there is also the technology. If somehow we can predict the appearance of the competition or customer needs, what will happen with the technology is something difficult to predict. Unpredictability of technological changes on the business in our example was one of the reasons for the failure of a successful business.
The Meaning of Unpredictability for You and Your Business
You can notice that the problem is not that someone failed to predict the future. The bigger problem here is the inactivity of the entrepreneur also reflected in the total inactivity of the whole business.
What this means for you and your business?
- Uncertainty leads to total unpredictability of the future of a business. Uncertainty is simply normal and common thing in and around every business. Thus, the predictability of that uncertain future becomes something hard. At last it leads to the completely wrong forecasts and predictions. But, you cannot fully remove the uncertainty, unless you come in the situation when your business no longer exists. So, my recommendation for you as an entrepreneur is not to predict the future, but to create the future.
- Unpredictability not mean the end of the business, but simply requires different behavior from your side. If you can’t predict something, you can’t say that it is beyond your capabilities. Such a thinking is not thinking of a persistent and successful entrepreneur. My recommendation is to forget about things that you know now and change your mindset from inert and reactive to proactive style. It is much better for you to have failed ideas, instead of failed company.