We all know the saying, “history repeats itself.” It’s a memorable statement because it’s so true. History constantly repeats itself, because we often fail to learn from mistakes and missteps. We live through it or read about it, shake it off…and then inevitably find ourselves in the same situation a short time later. By the same token, we can also learn from history’s victories and successes.
When it comes to your business, you can learn plenty from history. We have seen some of the largest and most notable companies like Google, Microsoft, and Coca-Cola make grave mistakes that impact their brand perception, finances, and growth. We have also seen some of our Incfile small business clients garner huge victories that propel their growth and success further.
To arm your small business for a successful future, you should brush up on both the successes and missteps that have taken place for businesses in the past. Learning from history will guide you in the right direction so you can prepare and pivot when need be.
Business Missteps & Victories
Businesses big or small are susceptible to making mistakes, as well as harnessing notable victories to impact their growth, sales and credibility. Here are three of the largest business missteps and victories, along with what you can learn from them:
1. Coca-Cola Unleashes “New Coke”
Misstep: Coca-Cola unleashed “New Coke” onto the market on April 23, 1985, as the first reformulation of Coke’s classic taste in a century. Consumers were so upset over the change that “New Coke” only lasted 79 days before the original formula returned to the market.
Learning: Don’t ruin a good thing or alienate your fan base. People are buying your product for a reason — they enjoy it. Especially if your product has been around for a while, your consumers will be skeptical of any change. So when you make a reformulation or launch a design change, you run the risk of losing even your most loyal customers. Proceed with caution when you are about to relaunch or make a significant alteration to your product, brand or company. Ensure you conduct adequate consumer testing to evaluate the possible risks or rewards from the changes.
2. TOMS Shoes
Victory: Blake Mycoskie founded TOMS Shoes with the one-for-one model — with every shoe purchased, a pair of shoes would be donated to someone in need. This simple but effective model was launched before it was the hit thing for companies to have a social responsibility component built into their sales model and products.
Learning: Now, giving back can be key to companies’ success as millennials are demanding that brands become more socially responsible. Consumers respond well to a sense of doing something good when making a purchase. The one-for-one model may not be right for every business, but there are other ways to incorporate an overall positive contribution to society or charitable act — perhaps forming a foundation arm of the corporation, providing scholarships, purchasing merchandise from fair-trade workers, etc.
3. Netflix vs. Blockbuster
Misstep: Movie rental giant Blockbuster was approached by Netflix, which at the time offered DVD rental by mail service. Netflix wanted to join forces with Blockbuster, but the then-CEO of Blockbuster declined the offer, thinking Netflix was a niche player. Now, Netflix is valued at over $152 billion — and Blockbuster filed for bankruptcy in 2010.
Learning: Take advantage of a hot opportunity. Sheryl Sandberg, COO of Facebook and founder of LeanIn.org, said, “If you’re offered a seat on a rocket ship, don’t ask what seat! Just get on.” If your business is offered a new opportunity or develops an innovation that will change the market completely, you have to thoroughly explore it and act fast. It’s also key to keep your eye on culture shifts and how consumer trends and interests are adapting. Especially with technological advances, we need to be agile and constantly improve, adapt and develop to stay relevant.
As you can probably imagine, there are plenty more lessons where these came from. So get more specific and dive deeper into your particular industry and what similar companies have failed and succeed at. Even though we can learn a lot from other companies and what history has shown us, that doesn’t have to be the fate of your small business if you pay attention.
