April 9, 2021
5 min read
Opinions expressed by Entrepreneur contributors are their own.
No one ever said it was going to be all smooth sailing. We’ve all been in a boat that’s gotten a little rocky, and some of us have even experienced a full-on capsize. In my experience of weathering the storm, there are one of two things that happen to your company: You either go out of business or you stay in business. If you are leading a team, you need to figure out which of those two positions your company is headed towards. Chances are, it won’t be difficult as a lot has already happened and shaken out in the marketplace. That’s good news for entrepreneurs, and even better news for leaders. The companies that weren’t strong enough to survive have already failed. And while we mourn their loss, we also have to recognize that it’s leveled the playing field. This is also a good time to take stock of where competitors have landed and where you currently rank in the pack.
The difference between those who survive and those who thrive
The companies that will win are those who learn how to leverage market uncertainty for their unique competitive advantages and leapfrog their competition with a period of rapid growth. On the surface, this sounds like a brilliant strategy, but there are thousands of ways it can fail if not executed well. A bad bet could take a company down, just as quickly as a good bet could pull it to the front of the line. This is where we’ll see a second round of companies fail, which will set the stage for the winners to double down once again and secure their seats at the top
Competition is about to get fierce as companies start to position themselves for market dominance. We can expect market sectors to start to shake up and shake out over the next two to three years as the full market impact of the pandemic unfolds.
At the same time, the potential gains are big. With market sectors in flux, the potential to take on the market leader spot has never been greater. This is the kind of opportunity that only comes around once in a lifetime so I recommend paying attention to your industry competition, closely. Technology is accelerating faster than Corporate America can adopt it, creating a fertile ground for start-up and mid-sized companies to innovate their way into the top seat. However, all bets are not created equal and entrepreneurs need to understand how to weigh bets and when to push the accelerator.
Related: 3 Reasons Why I Gladly Welcome Competition
Creating a framework for success
Framework is important. It should be flexible and allow for rapid failure. The best way to win is to fail faster and in smaller chunks. It should also empower winners to make their way to the top faster. Oftentimes, winners lose because they can’t even see they are there. The framework must prevent that from happening, and should allow for rapid experimentation. We never know which idea is a winner until it has a chance to win. So often our strategies are mired in complexity and complicated execution plans. That isn’t going to fly if you want to take the top seat. Instead, you’ll need a space for ideas to be planted, to grow and to reproduce. In execution, this often looks like an idea lab with a budget and a team who knows how to get stuff done at the helm.
So how can leaders understand the chessboard so they can call checkmate on their competition? They have to settle into discomfort. Prepared leaders will be able to make clear-headed decisions while seeing market opportunities that are invisible to the untrained eye. And they will be prepared to move even when it isn’t comfortable to do so.
The road to the top is rather arduous and requires massive levels of organizational flexibility that can’t be taught overnight. The leadership team must be in sync and know how to make the right decisions that are right for the business and its people, even if they are tough or risky. Employees need to feel appreciated, valued for their contributions and celebrated every step of the way. Customers also need to feel satisfied and delighted by their entire experience. That’s a tall order for a company of any size, but especially challenging for industry behemoths. That’s why it’s a market ripe for the market leaders to fail and the market innovators to succeed.
Related: 5 Tips For Building an Entrepreneurial Framework
Taking advantage of future innovation gaps
These are evolutionary times. We’ve never seen a combination of events with such a broad brush of impact. Every industry is primed for rapid transformation and realignment as the full market impact of 2020 continues to unfold. Technology is accelerating faster than it can be adopted by industry leaders, which is opening the door for innovation gaps. These gaps create an opening for new startups to come through and disrupt entire markets.
There’s no telling what innovations will pop up and be the next market leader, but this market is ready. We’ll get excited about the innovation, and before you know it, it will become the new norm. This won’t be the first time we’ve seen industry leaders fail and get overtaken by an unnamed competitor and it won’t be the last. As markets have it, there’s always a play that can win. Will it be yours?
Related: Starting a Business? Here’s How Innovation Will Take You Ahead