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How to future-proof your business & avoid being a victim of disruption
Andrew Stubbs • Nov 09, 2019

If you once ran a thriving taxi company that started to fade when Uber burst on the scene or a hotel that suffered from the impact of Airbnb, you know what the word "disruption" means.

You probably don't do either of those things but could the business you do run be equally at risk from rapid changes in your industry in the future?

"I never saw it coming" or "Who could have predicted such quick change?" is a poor defence against a failed business. And closing the door after the horse has bolted usually does little good: you can't catch a bolting horse on foot.

So ask yourself: 

How future-proof is your business?

How well-equipped are you at handling disruptive forces in your industry?

Could you be doing more?

Following are seven simple measures you can introduce to lessen the effects of disruptive forces on your business.

Taking the steps now to add future-proofing to your business could save you considerable stress in the years ahead.

  1. Listen carefully to your customers

Your customers are not just a source of revenue; they're a great source of information.

Understanding where they are now and where they want to be can help you develop products and services that better meet their demands now and in the near future.

How often do you survey your customers to get their feedback on past products or services and ideas for new ones? This is sound business practice on many fronts because it helps you stay up-to-date with their needs and expectations while also boosting customer retention and loyalty.

  1. Use social platforms to understand industry trends

LinkedIn groups, Twitter, and other online industry and business-based forums can help you keep abreast with trends in your industry.

If it's happening, you'll most likely hear about it first on Twitter or inside an active LinkedIn or Facebook group. Here, your industry peers discuss what's important and thought leaders keep you enlightened.

Staying across this and becoming an active contributor can help you foresee what's around the corner.

  1. Think relationships - not transactions

Another tip that's just good general business practice is to build relationships rather than simply going after transactions ; provide experiences rather than simple products or services.

Relationships with employees, customers, and suppliers are the key to a sustainable business. And by building closer connections to these key parties, you will gain more insight into their needs, desires, problems, and issues going forward.

Being aware is the first step to being prepared. Once you know what's coming, you can plan for it; but without building close bonds and working partnerships, you're shooting in the dark.

  1. Hire and develop millennials

Businesses in most developed countries are experiencing an aging workforce, greater cultural diversity in the workplace, and a growing number of millennials taking leadership positions.

If you're not already hiring and developing millennials, now may be a good time to consider it. They are your future leaders and are set to dominate the workforce by 2020. And they thrive on innovation, connection, and community.

Mentor and train millennials and ensure they understand your wider vision and how they can contribute.

Without this level of attention to their development, they may become disengaged and look elsewhere. And high staff turnover is never good for a business. Look to build a team that is raring to go into the future.

  1. Focus on flexibility and "leanness"

You want your team all shooting for the same goals but it's important to review these goals regularly and build flexibility in your business.

Without some flexibility, a branch breaks off a tree in a strong wind. Similarly, when external forces impact your business, it can stretch and break it.

While you have no control over external forces, you can build a leaner and more flexible organisation that is better prepared for change: this thinking should permeate your structure, leadership, operations, working arrangements, and delivery methods, and become part of the culture and identity of your business.

Remember, it's difficult to turn around a top-heavy juggernaut if you're going the wrong way; it's much easier if you are driving a minivan.

  1. Apply the best technologies to solve problems

Things don't get un-invented. Once the technology is out there in the business domain, someone will use it to either connect with customers or make their business more efficient through automation.

Think of how online shopping has revolutionised purchasing habits over the past decade or so.

The skill is in applying the technology in the right places. Many businesses don't have the flexibility to apply the latest technology and innovate. They usually end up being supplanted by newcomers that do.

Uber married the growing use of mobile apps with frustration for unreliable taxis amongst their massive target audience (who doesn't-or pre-Uber, didn't-take taxis?). The company used cutting-edge technology and paired it with a strong understanding of their buyers.

How can you do the same?

You don't need to be an online or app-based business to consider what customer problems (or business process problems) you can solve with the latest technologies.

  1. Diversify: eggs in more than one basket

You may initially build your business on one main product or service but pinning its future health on that can be very dangerous.

When Google changed its algorithm a few years back, many previously successful online small businesses went bust almost overnight. They pinned their whole business model on achieving a top Google ranking and suddenly they plummeted.

There are countless offline examples of one-trick ponies getting caught out by external market changes affecting their product or service.

Don't be one of them. Diversify your offering and future-proof your business: ideas can come from employees, customers or even suppliers. Keep all doors open for product development and innovation.

 

As you can see, you don't need a crystal ball to prevent your business being eaten up by future disruption.

By taking a few initial steps - many of which are simply sound small business practice - and looking for continuous improvement, you'll be better prepared for what's around the corner. That will place you in a stronger position than most other businesses when push comes to shove.

Need assistance with making your business more future-proof? Speak to one of our advisors.

By Andrew Stubbs 05 Jun, 2022
Here's some good news if your business sends invoices to business or government customers. Peppol* is on its way. (That's Peppol, not Peppa .) Ever had this conversation in your business? You or one of your team: "Hello, I'm calling to follow up the invoice we emailed to you last month. It hasn't been paid yet." Customer: "Really? We didn't receive that invoice?" In addition to the time and expense of following up, the cash flow delays create stress for you and they hurt your business. Thankfully, the adoption of Peppol will solve this problem. What is Peppol? Peppol is an obscure acronym for Pan-European Public Procurement On-Line. What's more important than what it stands for, is what it enables. Peppol is an international 'eProcurement' framework for the electronic exchange of information. It creates a standard approach for governments and businesses to structure and exchange information such as invoices and other documents. What Peppol means for you and your business Peppol makes electronic ordering, invoicing and shipping between governments and private companies faster, simpler and more secure. This means your business will get paid faster when dealing with government and larger businesses. In 2019, Australia and New Zealand adopted this platform for e-invoicing which, when implemented, will make 'we never received your invoice' issues virtually impossible. The new e-invoicing system is more secure than email and provides many other benefits. Which countries are adopting Peppol? There are currently 40 OpenPeppol member countries: 32 countries in Europe plus Australia, New Zealand, USA, Canada, China, Japan, Mexico and Singapore. Each country has a Peppol authority. For example, in Australia that's the Australian Tax Office (ATO). Is Peppol already in use? Yes it is. For example, the SuperStream system in Australia-which many businesses are currently using to automate the payment of employee superannuation contributions-is based on the Peppol protocol. How does e-invoicing work? The system connects the accounting systems of all businesses and government departments via the secure Peppol network.  Suppliers generate sales invoices in their accounting systems which are sent to Peppol.
By Andrew Stubbs 04 May, 2022
If you're a director of an Australian company-or you plan to be-take 5 minutes now to read this article. All existing directors (and intending directors) of Australian companies need to be aware that the Australian Government has announced the introduction of a new mandatory Director Identification Number (DIN) system. (You'll notice the term director ID is also used for DIN.) This system is the initial step in the Modernising Business Registry (MBR) Program which has been established under the Treasury Laws Amendment Act which was legislated by the Australian Government in 2020. More information on the MBR program can be found here . What is the DIN system trying to achieve? The DIN aims to provide accountability and traceability of a director's relationships over time, across all companies and will provide information on a director's involvement in what may be repeated unlawful activity, including illegal phoenix activity. It should also solve the problem of false or fraudulent director identities. What are the key features? It is mandatory for all directors, foreign directors and alternate directors of Australian companies to hold a DIN. The DIN is a unique 15 digit number. The first 3 digits will be 036 which is the identifier for Australia. The last digit is a check digit to help with accuracy when quoting your DIN. Like your tax file number, you will only be issued with one DIN which you will hold for life - even if you cease acting as a director for any period. To obtain a DIN, you will need to prove your identity so you will not be able to hold multiple DINs. Other office holders (e.g. company secretaries) are not required to register. The director is responsible for updating the DIN records for any changes in personal information within 7 days of the change. The director must apply personally. The process cannot be completed by your accountant, lawyer, spouse or executive assistant. There are significant penalties for non-compliance. How do you apply for a DIN? Directors have 3 options for applying. You can apply online from 1 November 2021. To use this method, you must first establish your identity via myGovID (an app you download on your smart device which is different from myGov). Once set up, your myGovID will make accessing a wide range of government services easier. (It's not just for your DIN application). For information on how to set up a myGovID please go to https://www.mygovid.gov.au/set-up During the DIN application process, you will need additional information such as your tax file number (TFN) and your residential address as per ATO records. It would also be advisable to have other personal details such as bank account details, medicare card or a recent income tax assessment available in case these are required. You can also apply by phone ( 13 62 50 ). During the call, the operator will ask for the identity documents you would have used to obtain your myGovID (passport and driver licence) as well as the additional information listed above. These details will be confirmed with the records held on existing government databases and, assuming the details agree, your DIN will be issued. Or you can apply by mail, but this is not recommended because the process for doing this seems vague ("Write to us") which means you can probably expect a lengthy process of certifying documents and coping with the vagaries of the postal system. One of the other two methods would be a better choice. When will you need to apply for a DIN? Transitional arrangements will allow directors to become familiar with the new requirement. When you need to have a director ID will depend on when you were appointed as a director.
By Andrew Stubbs 07 Apr, 2022
If you're a small business owner, you're always on the lookout for better ways to go about routine tasks to boost growth and underpin reliability. So, yes, you have the will; now, what are the ways? What are those consistent routines you can instill that will have the most benefits? This article looks at the top 6 things you can do to help your business thrive. We're going to cover finances, goals, marketing, technology and you ! So, let's take a look… 1. Your finances are a scorecard … and a predictor Boil it all down and dollars in the bank are the report card on the health of your business operations. Surprising then that so many people don't really pay much attention to how much they've earned, nor how much they're likely to earn. As much as it might feel like a chore, reviewing your sales and financial projections and then using them to ascertain if you need business financing is a discipline worth cultivating . If you suspect that your cash flow is precarious, you should be checking out your options today. First metric to check: your credit score. If it is too low, you need to take steps to shore it up. Next, check in with your bank or finance broker about what loans are available. 2. Goal setting, goal achieving, goal celebrating So, if you're using current and future dollars in the bank to keep score, the next thing is to do something about it. This is where goal setting comes in. If thoughtfully set and persistently pursued, goals help you orientate your willpower and your energy at each moment of the business day. This is the hidden power of goals: giving you a good sense of direction and a way to channel your instincts towards wise objectives. Constantly checking in with your goals makes them a benchmarking tool to keep your business pointed in the right direction. Yes, just having goals helps. Actually achieving a goal helps too, of course! 3. Increasing the impact of your marketing Marketing is not magic. It is not a mystery. It is not an art. However, many less-than-reputable marketers will try to claim that it is. They do so to gain wiggle room to pad their invoices and cover up their lack of skill. What this means is that it is easy to waste money on ineffective marketing. The good news is that there are many low-budget marketing strategies that actually work to help grow your brand and reputation. Scout around on the internet and choose one or two new tactics. Deploy them and test them. If they work, double down. If they don't, try something else. If you can't tell if they're working, also try something else. Social media is the obvious starting place for these low-stakes experiments and the old classics of LinkedIn, Facebook and Twitter are where to trial them. 4. Bringing your business up to date technologically The ability of modern productivity and project-management tools to give small players the same capabilities as the big boys simply cannot be ignored. Harness them properly and they'll let your small businesses operate with the same productivity as the titans of your sector. And, if your business is in the services sector, the increased controls that business technologies can yield also lets you be highly agile - that's something the big boys can't do. So, ask yourself: are you taking full advantage of what's out there? Don't worry, the answer to this question is always 'no' - the field is simply moving too fast for anyone to be able to take full advantage. However, if you have a realistic view of your needs, then you have a yardstick to help assess all the solutions out there. When you know what you need the technology to do, then you can wisely choose what hardware, software, platforms and techniques to introduce. 5. SEO has changed and it is going to change again Google - indeed all platforms offering broad search functions, from Youtube to Facebook - are constantly altering and optimising their algorithms. This, in turn, means SEO practice must constantly evolve to keep pace. So, if your SEO approach hasn't been overhauled in a few years, the time has come to give it some attention. Do a review of best practice and score how you cater to SEO in your online presences. Yet, because the underlying concept of SEO has not changed, the corrective actions you need to take may not be major. Then again, they might be! It is better to know unpleasant news sooner than outright bad news later. 6. Download the right new apps The remote work trend has gone mega and this means mobile productivity apps are very much of-the-moment. See, you can get a surprising amount done with just your phone and tablet. And apps are how it all happens … plus connectivity and a full battery, of course! Usually, apps are best for keeping an eye on things, boosting effectiveness on the "busy" tasks and enabling you to give your stamp of approval to work that needs your say-so to progress. In general, these are not value-adding tasks, just the value-neutral tasks that get in the way of the value-adding tasks. Now, there is no end of apps out there. So, as always, don't bother looking until you have some idea of what you need. 7. You are the ultimate business tool Health is the single most important aspect to consider for anyone running a business. It's the non-negotiable factor that governs everything else you are capable of. To adapt a quote from Arnold Schwarzenegger, being fit and healthy is "a status symbol. It reflects you worked hard for it; no money can buy it. You cannot borrow it, you cannot inherit it, you cannot steal it". This means that you must get enough sleep every night (most people need 7 hours or more). This means a healthy diet must become your preferred way of eating. This means that you should exercise every single day (except when sick). This means you must give your mind a rest too . Meditation isn't some mystic monkish thing, it's simply the practice of letting your thoughts come and go while you - the observer - stay peaceful and undisturbed by them. Think of it like this, meditating is mediating your mind. Take stock, choose wisely, make small steps in the right direction In this article, we've talked about some improvements you can make to what you're already doing. You don't have to do all of these at once. Start with the one that seems easiest and then stick with it to see if it works. Remember, it's not always about big changes. Often, you can make major improvements in outcome by making small changes to input. Doing the little things better. So take stock, choose wisely and be sure to make those small steps in the right direction for success today, tomorrow and the next day.
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