Since the beginning of time, people have always wanted more than what they already have. Own more land, make more money, travel more, sell smarter, dress better, look skinnier. It is the same in business – we all want a more successful business. A business that will resist recession and withstand all storms.
Fortunately for you, I have some so-called tests you can run to see if your business is bulletproof.
The core idea of resistance is being able to adapt. How much does it take to build your business? Is it a slow process? The longer it takes to build it, the more danger you are in because it would be harder to adapt. Harder to pivot. Agility is what you should aim ALWAYS when starting a new business.
You also don’t want massive investment – you have to pay your workers whose salaries are staying the same, but the money that’s coming in is not. Ouch! Boy, does that hurt, right?. A shorter financial cycle and no massive investments will protect you in a way, they will keep you afloat, in case the market shifts and that can happen quite often. I mean, Amazon has categories that exist only for a certain amount of time, so imagine wanting to write a book aimed at a specific category only to realize that by the time you finished it, the category is gone. It’s the same with massive investments – you may not have time to pivot.
Another vulnerability is having a complex business. Having a business where a lot of things that are out of your control have to go right for your business to keep running. Those moving parts make you vulnerable, just like having a lot of competition does.
You want to enter a market that’s refreshing, that offers a lot of opportunities, that’s expanding. If you are not a pioneer, then it could be hard for you to establish yourself, so you need to look for your competition and understand their philosophy.
Another thing you don’t want to do is sell luxury goods. Imagine a situation just like we are in now. A global pandemic strikes and everyone is in survival mode. Nobody buys luxury goods. Nobody cares about fashion or celebrities. So there is something that you need to bear in mind, and ultimately the single point of failure. You don’t want to have a single point of failure.
Relying on one person, one source of traffic, one product is a huge no-no. Spread your product line, modify your business, introduce variety. It’s the only way to achieve FLEXIBILITY.
- Don’t rely on one single traffic source, one person, or one product
- Always choose a market that offers a lot of opportunities and is always expanding
- Variety is your best friend