“Skate to Where the Money Will Be” is an article in Harvard Business Review written by Christensen, Raynor, and Verlinden. The article is as interesting as the title suggests. Embedded in this interesting write-up is a section on the auto industry – and a perspective that should be on the minds of entrepreneurs everywhere. The authors predicted that the auto industry would begin to focus on smaller niche markets and produce newer models at an accelerated pace. They were right! In the 1960′s it was common for an automaker to sell 1 million units of the same model. Today, that market is fragmented – niche focused – they’re happy if they sell 200,000 units of the same model. In fact, they bank on it. Decades ago it took over 6 years to manufacture a new model. Today – it takes less than 2 years! Here’s where it gets interesting (so pay attention if you care to stay in business); In the future, the authors predict you’ll be able to walk in to a dealership and order a car to your designed configurations and have it delivered within 5 days!! To accommodate this reality, automakers are changing their technologies, supply channels, and design methods….. Everyone doing business associated with this industry will have to keep pace with the evolution – or they’ll be out of business.

As noted in the article, we’ve all witnessed the evolution of Dell Computers and IBM. Folks thought Dell was nuts for selling customized computers direct. They changed the landscape and caused an entire industry to adjust! IBM saw the writing on the wall years ago. They knew they had to evolve if they wanted to survive. IBM successfully transformed themselves into a premier consulting organization. Heck – they used to build computers!

So what does this have to do with you? What are we asking you to “skate” towards?

3 Critical Questions to ask yourself:

• In your business, are you focused solely on the present? Do you have some indication where your industry will be in 5 years?

• How can you leap ahead and position yourself towards the front end of an inevitable evolution?

• Are you paying attention to neighboring industries? For example, if you operate a deli – do you have an understanding of the industries of your suppliers? The vendors that supply your meat, drinks, paper products, etc. How are they evolving and how might that impact your business?

Proven true by virtually every industry known to man; it’s not “if” an evolution is coming, it’s “when”! These authors would recommend you put on your pair of roller blades and skate in the direction of the money. That would be in the direction of the evolution/change of your industry. Don’t get left behind!