Kodak’s cautionary tale
Back in the 1970s, one company was associated with cameras more than any other.
Kodak sold 85% of cameras in the US and 90% of photographic film. As late as 1996, it was ranked the fourth most valuable brand in America, behind only Disney, Coca Cola and McDonalds.
Yet just a few years later – in January 2012 – Kodak declared bankruptcy.
How did this remarkable collapse occur?
In hindsight, it was all so obvious…
Even though their company had invented digital photography, they continued to insist that film photography would reign supreme. They didn’t recognise that people would prefer the convenience of digital and didn’t believe that their customers would give up printing photos.
So they missed out on the digital photography revolution.
The lesson? Markets can change very quickly.
And when that happens, you cannot be complacent. You have to pivot, or your business will be at risk – even if you’re very well-established.
Right now, I fear that too many businesses are failing to recognise that the external environment is changing fast and that they need to adjust.
For many the change is economic. We’re living through a period of economic turmoil, with interest rates and inflation posing particular danger and constant talk that we are on the brink of recession.
Many businesses will not be particularly affected, but others will find that their sales, ability to reach their market and operate in a cost-effective way are impacted.
Like Kodak, other businesses will be challenged by rapid technological innovation in their sector, making their products out-of-date.
Yet others are grappling with cultural shifts in our working arrangements. For example, some of our clients are struggling to get their employees back to the office, even though they are certain this would be best both for their team and the company. They are looking for new ways to recruit and manage talent.
In each of these cases, the worst mistake you can make is to bury your head in the sand…
…To continue as you were, and hope that the problem goes away.
It rarely does.
But unfortunately, that’s often what businesses tend to do. When your business is well-established, it’s easy to believe that your success is baked in…
…and that if you just continue, steady as you go, you’ll continue to thrive.
It can also feel quite onerous and intimidating to rethink some of the basics of your business. Too many businesses put off the task again and again, holding themselves back as a result.
That’s where we can help.
Our financial management service is all about helping you grow faster and increase your profitability. None of that can happen if your business model is rapidly becoming outdated and putting you at a competitive disadvantage.
That’s why we work with our clients to ensure that their model is resilient. This includes looking in-depth at your financial performance to understand your full financial picture and determine where there may be weaknesses and gaps.
This is often a lightbulb moment for many clients, who see their business in an entirely new light.
We can also help you think through any changes you want to make – facilitating the discussion, asking difficult questions, and above all ensuring that everything you’re proposing makes good financial sense. Instead of ignoring any challenges to your business model, we’ll help you tackle them.
Finally, once you’ve determined a new course, we can help implement it. For example we can help secure external investment, and ensure that your finances are in a fit state to fund your future.
By doing this together, with financial experts by your side, evolving your model becomes much more manageable. And your business will be much stronger in the long-term, because you’ll adapt to a changing landscape and pivot where necessary.
Ready to do things differently? If so, let’s talk.
Let’s discuss how our financial management service can help you build resilience amid external pressures. We’ll work closely with you to assess your financial health, identify areas for improvement and craft a business model that not only survives but excels in face of change.
Simply hit ‘reply’ to this email or call us on 01279 647 447 to find out more about how we can help you.
Warmly,
Garry
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