Best Business Strategy: Plan the death of your Business

death-of-businessOK so one more bold statement to make. One more discussion to ignite some ‘out of the box’ thoughts. Do they work? Do they add value to the Business? Whether yes or no – they definitely push you to think in ways you never thought and they give you cues for your next big success.

Our ventures are dear to us. Casually we even call some ones product or company as “his or her baby”. Why do we do that? It happens pretty much out of affection. We are deeply attached to something, to an extent that we just can’t think of its end. Though back of the mind, we fear about it.

This is prominently another reason why Entrepreneurs find the “Exit Strategy” section in their formal Business Plans to be the most challenging one. Exit Criteria – One of the sections that clarify how you will exit your business. Whether you will get listed on the bourses or you plan to get sold to a bigger fish.

Let’s take it this way. If your business is going to collapse or your product is going to fail in next 6 months what will you do. The immediate reply that I often get is “But why will it fail?” We have products that are cash cows for our Businesses. We nourish them a lot and never wish that they die.

But change is obvious. It’s prevalent. One day, some one will popup with a new product or service. You are the best in the industry, ahead of the game. But this new chap will just change the way the game is played. We never thought but Mobile phones have actually killed the complete Alarm Clock industry, hasn’t it? We just don’t use Alarm clocks.

Let’s take the same example over its head. Products whose services can be delivered even by a mobile should ideally go out of business. But what about the mp3 player market? IPods never had a threat from mobiles. We always thought a better mobile phone system will do many things for us at the same time, like our computers, but iPhone denied multi-tasking!

These products are trend setter, they just blow the way the competition works. Now you are left with simply 2 options. Either continue with your cash cows and wait for your death knell, until some cool product pops out OR take charge and develop the next iPhone of your industry. It will be risky, definitely challenging. But it will be worth it.

Ever wondered why we have the concept of death? During my school days when I asked this to my teacher, she smiled and replied “So that you people like you start taking life seriously!” It seems more apt to me now. If we think about death of our products, or business or death of our Industries only than would we think about how can that be? Who will do it? And be better prepared for it.

We will give birth to new products. New experiments. New innovations. That’s the way things work. Death is very important for re-incarnation to happen. The life doesn’t end once you are the number one. Life becomes all the more fun, because you now have to defeat yourself and be better than yourself. That’s real competition. That’s fun. That’s the best Business Strategy!

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{ 2 comments }

Rahul Ramchandani April 20, 2010 at 9:40 am

So true..& rightly siad by you Sir..

Mars Dorian April 20, 2010 at 11:42 pm

I’m always for taking risks, and your idea associated with death is simply awesome ! Even though I wouldn’t plan the death of my business, I seriously consider that everything is temporary and that I might lose it some day, maybe even in the new future.
That’s why I sharpen my inner edges to create the most beautiful art I can come up with !

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