(This is part 4 of a 7-part series on “Warning Signs That it Might be Time to Sell Your Business”)
The industry you are in is changing…and not for the better. I am a true believer in the law of change. What the law of change says is that, “Nothing ever stays the same. Things are either going forward or going backwards, they are either growing or dying”. That is the law of change.
Neither you nor I can stop the law of change. All industries change just like people do. But one thing you will notice is that as an industry begins to mature, meaning more players enter that industry, the profitability and future of the industry begins to change.
For example, would you want to own a video store in today’s market? You would probably say, “Heck no. They are a dying business.” And you would be correct. However, I was in the video rental business before Blockbuster, Netflix, Redbox and all of the other sources of entertainment rental that is available to us today. When I began in the business it was very profitable. But then it began to change. First with the opening of Blockbuster Video stores, then Hollywood Video and then, well you get the picture. The point is that the industry changed until the profitability of my business was minimal or almost non-existent.
The key to this “Change Factor” is not to stay in your particular industry too long. Don’t ride a business into the ground. Recognize the changes that are going on in your business and be sure to get out before you have to be closed or forced out.