Sure, I still have new prospects that can start their business with me with adequate volume and I am glad to have the opportunity to grow with these clients. But the new start-ups require a different set of deliverables. In the past I would have passed on the business as being too small in volume. But today I have expanded my thinking to offer consulting services to these newcomers. They may reach a critical mass sometime in the future to be producing in adequate volume but their needs are different today.
Sam Walton’s strategy was to substitute knowledge for inventory. He installed a satellite system that uploaded sales figures regularly from all the Wal-Mart stores. This information was downloaded to the vendor’s EDI system and automatically orders were generated for the necessary products at the right places and just in time. Walton was able to trim costs for warehousing, freight and distribution and pass these savings onto his customers.
Inventory is only one type of asset that knowledge can replace. Advising a start-up as to how and where to invest their time and money based on the guidance of an experienced consultant will certainly add value. Getting the right direction at the critical points may even help in the eventual success of the new venture.
New entrepreneurs typically have limited funding so they best spend it wisely in the pursuit of minimizing the time it takes to get from ‘concept to cash flow.’ Markets and customers may be demanding and impatient, but being prepared to make the right choices at the right time will add to the prospect of success.
Think about what products and services your customers need now and see if you can adjust your resources to serve the demand. Don’t let inertia keep you in a mode required to service needs of the past. Find new vendors for new products that your customers want. Use technology improvements to offer valuable new features from anti-microbial to UV protection to supporting the Green movement. Respond to the needs of today by keeping up with new ideas and using your valuable skills learned in dealing with people in the past. Your future depends on it.
