Financial Data
Updated 24 Sep 2020

To survive your business must try new things

If you want to survive, you have to keep trying new things – and you won’t always get them right. 

Allon Raiz, Entrepreneur, 10 October 2015  Share  0 comments  Print

All the answers to your unique business lifestage questions

A few years ago, I met up with my mentor at a small game lodge in Mpumalanga to spend time working on my business. The weekend’s agenda included reflecting on the last year, and finalising my strategy for the year ahead.

Business had been great and I was confident that my competitors were still lagging far behind us. However, to maintain that position, I’d also gone into ‘protective’ mode.

Related: Common reasons why businesses fail in South Africa

Going into protective mode

As your business grows, you will experience higher levels of competition, both directly and indirectly. When this happens, most entrepreneurs, including myself, inadvertently put their businesses into ‘protective mode’ and defend their position through the likes of exclusivity agreements, trademarks, patents etc.

If your business stays in protective mode, one of two things will happen. Either your competition will slowly eat away at you, one nibble at a time, until they are strong enough to be able to challenge you.

Or, after spending time hunkered down in a protected position, you’ll eventually look over the perimeter wall, only to find that the whole market has changed, your business is no longer relevant, and your customers have gone to your competitors who have moved with the times.

By remaining too focused on defending yourself, you will miss the changing context.

A sign of survival

“If you want to survive, you’ve got to keep bleeding at the right pace and depth,” my mentor said.

“Your business will only survive in an ever-changing business environment if you are continually trying new things. Sometimes as a result of not getting these things quite right, you must be prepared to lose money, resources, or even confidence in order to survive in the long term.”

It’s a natural instinct to cushion yourself with protective padding so that you don’t feel pain. The downside to this is that your business will stagnate and cease to be relevant.

The right pace and depth

The trick to trying new things is to not get cut too deeply. In other words, make sure that the size of the risk that you are taking is not potentially fatal to the business if it doesn’t work out.

You also need to manage the pace at which you are trying new things, so that you don’t bleed to death from too many ‘paper cuts’ at once.

Getting it wrong is okay

It’s okay to make mistakes along the way, as long as you are learning from them. When you launch a new product and it doesn’t work according to plan, listen to the feedback, finesse your product or service, and then reintroduce it back into the market.

Related: 8 Ways to focus on your career with an entrepreneurial mind-set

Repeat this process until you have either created a product that the market actually wants, or if you are unable to meet those needs profitably, scrap the idea.

When your business starts doing well, be honest with yourself as to whether your business is still ‘bleeding’ at the right pace and depth. If it’s not, start experimenting again and bleed a little.

Your shift questions

The secret to shifting your mindset and therefore your business, is asking yourself the following questions, and answering them honestly:

  1. Are you stuck in ‘protective mode’?
  2. Are you prepared to ‘bleed’?

Entrepreneur Mag Logo

Copyright is owned by Entrepreneur Media SA and/or Entrepreneur Media Inc.
All rights reserved. Click here to read our editorial disclaimer.

Rate It12345rating

About the author

Allon Raiz, Entrepreneur

Allon Raiz is the CEO of Raizcorp, the only privately-owned small business ‘prosperator’ in Allon Raiz is the CEO of Raizcorp. In 2008, Raiz was selected as a Young Global Leader by the World Economic Forum, and in 2011 he was appointed for the first time as a member of the Global Agenda Council on Fostering Entrepreneurship. Following a series of entrepreneurship master classes delivered at Oxford University in April 2014, Raiz has been recognised as the Entrepreneur-in-Residence at the University of Oxford’s Saïd Business School. Follow Allon on Twitter.

Introducing the cash solutions for a growing business

Are your cash solutions supporting your growing business? Leigh Livanos, Head of Payments, Collections & Cash for Business & Commercial Banking explains how your cash solutions needs will evolve as your business expands.

Login to comment