The necessary signals to look out for include, introducing new technologies to the segment and changing market requirements. It also includes falling profits and overconfidence in your product. Yuriy Lazebnikov is the international entrepreneur and managing partner of the TECHIIA holding, who identifies these points as important signals.
He writes about them in another op-ed for FastCompany.
The Business Impacts of These 4 Signs
Yuriy thinks that technological innovation is an expensive thing for business which, in addition, requires time for staff training. Even so, ignoring new trends brings the risk of losing the company or at least putting it in a worse state. The entrepreneur sets Nokia as an example: at some point, the company missed the beginning of the software era for cell phones, and couldn’t compete with Android and iOS.
Furthermore, market requirements and demand may change. If they are not tracked in time, you might as well say goodbye to the market share. For instance, if a consumer wants vegan sausage, and the manufacturer only produces meat, the entrepreneur has a potential issue.
The third sign, according to Lazebnikov, is a drop in revenue. It may be related to the rapid development and construction of infrastructure. But sometimes profits fall not because of growth — and this is a signal. “Operating at a loss, you will start to lose employees, then key clients will begin to fall away, and sooner or later your business will collapse,” says the businessman.
Summary
In conclusion, he emphasizes the danger of an entrepreneur’s confidence in having created a universal product or service. This means that the business stops development. Sooner or later, it will be overshadowed by another company that is developing in a more aggressive way.
“A functioning business is always a developing project. Constantly monitor your competitors: this is the only way you will be able to understand where the wind is blowing and adjust your strategy,” says Yuriy Lazebnikov.
TECHIIA is an international technology holding founded by Yuriy Lazebnikov and Oleg Krot, bringing together more than 10 business areas under one umbrella. TECHIIA offices operate in Cyprus, the USA, and Ukraine. The holding includes multi-directional companies: development of IT products and services, creation of content and merch, services based on unmanned technologies, production of innovative insulated glass units, etc.
