Never do something just because others are too

Yes, I know this contradicts what I often say about looking at your successful competitors and deliberately looking similar.

Which one are you?

The point of distinction I would make to you is that you shouldn’t copy high risk changes to your business. Let me explain.

Big company CEOs are often not very creative. Many are good at running large systems – which is what large companies are. They are not necessarily very good at knowing how to grow the business.

What tends to happen is that they often copy each other. It doesn’t really matter whether the source of influence is their peers, the media or management consultants – the underlying assumption is that if their competitors are doing something then they must have looked at all the issues so it must be okay for them to do the same.

Unfortunately the comfort that comes from running with the crowd can turn out to be based on mass delusion.

You as the owner of a smaller company don’t have the cash flow cushion necessary to survive a dumb decision. When looking at your competitor’s new strategy consider your own experiences in the market. Are they tapping into a known sector with willing buyers with the money to spend?

It may well be worth letting them prove that the idea works or not, then sweep in and take market share.

When you do take risks, take calculated risks based on your own understanding of the market. Also, try out new ideas as a trial or pilot to see if they work first.