Chapter 19
MANAGING CHANGE
We know not yes what we have done, still less what we are doing. Wait till evening and other parts of our day’s work will shine we had thought at noon, and we shall discover the real the real purport of our toil.”
Chang is a certainty that every entrepreneur can count on. There is no way to avoid it in today’s global environment; therefore, entrepreneurs must be ready and willing to adapt to new conditions, new threats, and new opportunities. May entrepreneurs have started a business with a vision and a plan for where that business would go but found that thing changed along the way. Forces beyond the control of the entrepreneur pushed the venture in new directions, and a new set of plan had to be constructed. Consider the highly volatile technology market during the first two years of the new millennium. How many entrepreneurs who had developed business plans for new e-commerce ventures and were seeking capital in early 2000 knew that their window of opportunity to secure those investments was about to close? In April of that year, the stock market plummeted, foreshadowing an enormous shakeout in the dot com world and the end-of “money for nothing “ In a matter of potential new e- commerce ventures failed to make it to the market place because they had no backup plan in place. Some would argue that the sing were there all along, but the easy availability of venture capital inspired the notion that all an entrepreneur needed was a great idea that could scald out to a huge market. In case, most entrepreneurs were not prepared for the change and had no contingency plans in place. Business owners everywhere know that the war in Iraq was coming in the early 2000s and that they would have to operate their companies during what might be a protracted period of high uncertainty. No one knew what the impact of the war would be so for a time, business held off on plan to expand. They stopped hiring and their sales slowed while the economy sputtered under a constant barrage of news from the front. But those business that had stayed in touch with the economy, had diversified, and had made contingency plans did not feel the impact nearly as much as their less prepared counterparts. Sam Brown, the CEO of Knight & Carver, a San Diego yacht, builder, recognized that his business involved discretionary purchased and customers who, in down times, would simply stop buying yachts. His business couldn’t afford to wait until times changed, so it made sense to diversify in to activities that didn’t experience the same kind of response to a down economy. At early as 1997, Knight & Carver had begun exploring the alternative-energy business with the goal of using their expertise in composite materials to build wind turbine blades. The demand. The demand was great, and this new venture provided a strong additional stream of revenue for the company, When the war began, Brown was uncertain of how much of a toll it would take on his business, but because about 70 percent of his business came from repair work, he was relieved to find that customers were still taking care of repairs on their vessels, particularly since they weren’t buying new ones. By 2005, the wind turbine business was booming. Brown is an example of a
Chapter 19
MANAGING CHANGE
We know not yes what we have done, still less what we are doing. Wait till evening and other parts of our day’s work will shine we had thought at noon, and we shall discover the real the real purport of our toil.”
Chang is a certainty that every entrepreneur can count on. There is no way to avoid it in today’s global environment; therefore, entrepreneurs must be ready and willing to adapt to new conditions, new threats, and new opportunities. May entrepreneurs have started a business with a vision and a plan for where that business would go but found that thing changed along the way. Forces beyond the control of the entrepreneur pushed the venture in new directions, and a new set of plan had to be constructed. Consider the highly volatile technology market during the first two years of the new millennium. How many entrepreneurs who had developed business plans for new e-commerce ventures and were seeking capital in early 2000 knew that their window of opportunity to secure those investments was about to close? In April of that year, the stock market plummeted, foreshadowing an enormous shakeout in the dot com world and the end-of “money for nothing “ In a matter of potential new e- commerce ventures failed to make it to the market place because they had no backup plan in place. Some would argue that the sing were there all along, but the easy availability of venture capital inspired the notion that all an entrepreneur needed was a great idea that could scald out to a huge market. In case, most entrepreneurs were not prepared for the change and had no contingency plans in place. Business owners everywhere know that the war in Iraq was coming in the early 2000s and that they would have to operate their companies during what might be a protracted period of high uncertainty. No one knew what the impact of the war would be so for a time, business held off on plan to expand. They stopped hiring and their sales slowed while the economy sputtered under a constant barrage of news from the front. But those business that had stayed in touch with the economy, had diversified, and had made contingency plans did not feel the impact nearly as much as their less prepared counterparts. Sam Brown, the CEO of Knight & Carver, a San Diego yacht, builder, recognized that his business involved discretionary purchased and customers who, in down times, would simply stop buying yachts. His business couldn’t afford to wait until times changed, so it made sense to diversify in to activities that didn’t experience the same kind of response to a down economy. At early as 1997, Knight & Carver had begun exploring the alternative-energy business with the goal of using their expertise in composite materials to build wind turbine blades. The demand. The demand was great, and this new venture provided a strong additional stream of revenue for the company, When the war began, Brown was uncertain of how much of a toll it would take on his business, but because about 70 percent of his business came from repair work, he was relieved to find that customers were still taking care of repairs on their vessels, particularly since they weren’t buying new ones. By 2005, the wind turbine business was booming. Brown is an example of a
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