There are times when the growth curve of your business takes a constant straight line. There are no new customers – only the existing ones, no new innovations, no increase in income and everything becomes usual. This stage is a red flag to the perpetuity of the business. It sends a message that the business is not a going concern. When there is no change in the way and how business is run, it becomes a question of when the business will shut down. This is because markets keep changing. The main drivers of change in the market are usually trends in tastes and preferences of consumers, technological advancements and activities of competitors. In industries that are highly regulated, government policies affect how the present and future looks like in terms of markets. The entrepreneur therefore must learn to evolve. In the concept of BCG matrix, it has been scholarly analyzed and proven that adoptive change makes the business sustainable. Your product or line of service might be currently profitable, however, to stay ahead of the competition curve and relevant to customer needs, your business model must be elastic enough to evolve with the market. Statistically, drawing from history, only 60 of the 1955 fortune 500 companies still exist. The others collapsed for failing to embrace change. This means that; inasmuch as profitability in the present is key, sustainability into the future is paramount. Your share in the market and your growth rate ought to be constant growth curves that are proportionate to each other when put in a Cartesian plane.
Columned by Rick Okinda.