Do you often opt for the status quo because you think it is the safe option? Does an unknown future scare you, so you stay in your comfort zone? Today’s FAQ Business Podcast episode is about why the status quo is rarely the safe option.
In this episode, we give some examples of changes which if missed were business ending. These are used to make you realise that doing nothing can sometimes be the riskiest strategy of them all!
Disclaimer – All information provided today is general in nature. We do not know your individual circumstances, so seek advice for your situation from a trusted advisor.
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S2 Ep29 Status quo is rarely the safe option with Jane Tweedy transcript of the FAQ Business Podcast
Have you been presented with an opportunity and thought, no, that’s too risky. I’m going to stick with the status quo. What I already know. Maybe you haven’t stopped to think that you’re actually taking the far more risky option by staying the same. In today’s podcasts we look at why the status quo is often the more risky option.
00:22 About the FAQ Business Podcast
Welcome to the FAQ Business Podcast for business owners, covering four pillars, actionable education, inspiring leaders, businesses like you, and thought leadership, where we challenge your thinking. Hosted by myself, Jane Tweedy, I’m founder and lead trainer of FAQ Business Training, where we want to avoid you getting ripped off or ripping yourself off.
We’ll feature an amazing diversity of guests, with lots to educate and inspire you. Let’s jump into today’s episode of the FAQ Business Podcast.
01:03 The certainties in life
Hi, I’m Jane Tweedy, and I am the host of the FAQ Business Podcast. Today’s episode is about the status quo and why it is often the more risky option. There is an old saying that the only thing certain in life were death and taxes. I beg to differ. I things the only thing certain in life, are death, taxes and change.
01:29 Innovation and change disrupt sectors
We are aware there’s been an industrial revolution and we’re sort of going through more of a tech side of that industrial revolution now. And we’re even moving to things like artificial intelligence. Things are disrupting many sectors. Things come in to innovate and change. Things like LawPath, come in and create documents that are available for people to download cheaply and easily. Sure, they’re not going to be as good as a lawyer. But are they going to get you most of the way there? Yeah, maybe. And that is where things are changing. So we can either be the one complaining and arking up about the stuff. Or, we can be the one going, okay, how can we understand how that’s going to impact our business? How can we work with it? And maybe not against it.
02:15 Horse and cart to the motorcar
So let’s go back. The old horse and cart. That was the mode of transport for people back in the 1700’s and the 1800’s. But in the late 1800’s there was this invention, the motorcar. And the motorcar became a thing that was powered by a engine that had been developed in the 1600’s. That was a gas combustion engine. This allowed the car to work. And so in the late 1800’s, the horse and cart was starting to be taken over by the motorcar.
And then of course, what happens is the motorcar, we just now call it the car. And the car is still continuing to evolve a little bit, but you look at it, a large part of it is that core that was developed in the late 1800’s. because you had so many people with horses that needed horseshoes. Now you might’ve gone I’m going to stay the same. I’m going to stay in this. My son is going to come into my business and be a blacksmith like me. Maybe your son should have been going into the automotive industry.
And becoming an apprentice mechanic that would have been a better option for them. So the thing is often we can’t see that the current is changing, until the tide has passed. Until there are basically all these automobiles and there are no horse and carts on the street. So we’ve got to be wary of this.
03:41 We wouldn’t have planes without innovation
And it also affects obviously innovation. Would the plane be a thing now if those people back in the day, hadn’t had of investigated the plane. You know, if the Wright brothers hadn’t have flown around, if they hadn’t of tested things out and try things out and prepared to make a change. No. We’d still be in the deep dark ages with our little, you know, fires and things, right? So things have got to evolve and change for us to grow as a world, and as a business. And we’ve got to keep looking at that.
04:12 No planes saw a disrupted supply chain
So what are those opportunities for change? So planes is another good example. Planes have created the ability for us to move resources and move people around the world. And let’s look at what happened during COVID, when those planes were unable to move people around the world. You know, a whole lot of industries were massively affected because our supply chain was hugely effected. So this is what you’ve got to remember. These things have flow on effects and we get so used to new technology that, when it fails, we can really struggle.
04:48 Blockbuster passed on Netflix in 2000
So another one that happened back in the year, 2000 was of course the Blockbuster incident. I think we can mostly remember this. Blockbuster had the ability to buy Netflix for US $50 million back in 2000. Netflix at the time was kind of struggling a little bit, and thought right. If we can get Blockbuster to help distribute. You know, then we can also turn people to, to go back to Blockbuster as well. So they were going to put their business up for Blockbuster. Blockbuster’s CEO at the time, John Antioco.
Excuse my pronunciation of his name, was the CEO at the time and he basically laughed them out the room. He just thought it was a joke. And he basically shooed them out. Go away. One of the main reasons Blockbuster didn’t like the Netflix model, the streaming model, because it was looking at streaming options. One of the issues they had with the Netflix model was that they made most of their money on late fees.
05:52 Focused on losing late fee revenue
So you remember for those of you that are old enough, in the old days when we had to go to the video store and we’d hire a video. The video might have only been a 24 hour hire, a three-day hire or a seven day hire, depending on how new it was. So for the overnight blockbuster kind of new release. You had one day to return it. If you didn’t return that blockbuster new release within that one day period. You got quite a big fine for not doing so. And each day it wasn’t returned the fine went up. So, this is where you’ve got to go. Hmmm. Okay.
06:26 Missed the far greater streaming service revenue opportunity
Blockbuster was saying, yeah, this is going to cut some of our revenue, but it was not looking at where the world was going. The people were looking at things on their phones, on their iPads, on their devices. They didn’t want to be confined to have to wait to go to the video shop. To see that release. They wanted to just be able to go on their phone. Phone on their iPad and pull it up. So they made a major mistake. And as we all know, Blockbuster went out of business and Netflix became a roaring success. So, this is why, you know, I’m just emphasizing the point here. These are examples of really bad status quo. They stuck with their status quo and they went bust.
07:10 Uber disrupted the heavily regulated taxi industry
Another example of the status quo, but not going bust would be the Uber taxi situation. So in many countries, including Australia, taxis were a heavily regulated industry. Obviously they were picking people up potentially in vulnerable situations. So there was a lot of regulation and control around this.
So it didn’t enable something like an Uber to come in. So you could basically buy a taxi license and register your taxi drivers and things, and have that car driven around by these registered drivers in this plated car. So some people would have a car, and they’d have multiple drivers. So it effectively was on the road 24/7. What happened though of course Uber came along. And in the past, these types of things had come along, but had never gotten anywhere, because they couldn’t break through the regulatory issue. For whatever reason this time around the government caved and it went, you know what? These regulations we’ve got in place for taxis are not necessarily serving customers the best way. Sure it’s offering them some protection, but is it actually serving them.
08:23 Taxi licences went from retirement savings to near worthless
So rip up the regulations and started again with new regulations. Like Uber, businesses like Uber to come into the play. And that completely changed things. These taxi licenses were worth a small fortune. Because, they had been able to buy them and hold them for their life and. It was only a certain number of taxi licenses available. So obviously they went up in value.
And in the years before Uber, they had gone up in value a lot. Somebody might’ve bought a license for say a hundred thousand. And now it was worth 300,000 and they’re thinking, yes, this is like, my retirement savings. But Uber came along, and the prices got smashed. Those licenses were pretty much worthless in many cases. So that was really hard. And then the industry had to be supported and, you know, it just created a whole bunch of issues. So then they kind of realise they’ve gone too far. And they made some adjustments and tweaks, and they now have the environment that we have now.
09:27 Don’t rely on regulation to protect your industry from change!
But the point is, even if your industry is heavily regulated and you think you’re protected by the regulations, potentially, you’re not. So please be very careful of this. Always allow for change. Always allow for disruption, your industry to be interfered with by others.
09:47 Evaluate opportunities more fully
What about evaluating your opportunities? A new idea comes along. Sometimes it is just not the right time and the right place.
09:55 Park ideas you don’t have the capacity for right now
If we are already over capacity, sometimes it can be an amazing idea, but we just don’t have the capacity to do it. At least park the idea. I have a system Trello that I use, and I have different ideas at different stages. And I do park them there. Because I liked them out of my head, because my head is full of ideas. And I like to park them Trello where and every now and then I can go and check my lists and say, whew, what ideas did I have that I want to look back into?
10:26 So the thing is you will never be ready.
Well, many of you will never be ready for an opportunity to hit you. You will always have an excuse. And it may just be simply because, we love what we do, we don’t want to change it. But as I’ve said, too many things can come along that can force you into this change.
10:50 Take the leap of faith
Sometimes we do need to take a bit of a leap of faith that you know what, it’s not as bad as we might think. This thing might be the next amazing thing. And sometimes to leap Through and push through those that terror that can face us.
11:05 First attempt in learning
Maybe we’re thinking we don’t know enough. You know what a fail is? A fail is a first attempt in learning. Fail. Therefore a fail just trying something and seeing whether it works. And if it does, we learn from the things that worked, but you know what. We learn more from things that don’t work. Things that hurt us. Things that cost us money. They are the things we remember more. So a fail is a first attempt in learning.
11:37 Don’t make it the 500th attempt though (without changes)
Okay. Don’t make it the 15th attempt in learning or the 500th attempt in learning, unless you’ve made changes along the way. Cause we’re repeating the same thing over and over again. Haven’t we heard that before. That’s the sign of going psycho. Just remember that. So always learn and evolve, learn and evolve, learn and evolve. And if we do that, honestly, those attempts in learning, become amazing learnings for us. And we end up with the most amazing product at the end of it.
So make sure you at least consider investigating the issue further, whether you can’t do it right now. If you just don’t have the capacity right now, that’s fine. I get the overwhelm. Been there, done that. But we need to at least, like I said, park it to remind yourselves to come back to it later.
12:24 Be prepared to avoid negative surprises
We don’t want to be, you know, completely surprised when something happens. One of my clients actually looked at Telehealth before it became a thing with COVID. And she actually went and created a Telehealth system, but nobody actually took it up because nobody wanted it. But the awesome thing was she had it ready to go. So as soon as COVID happened and everything switched to Telehealth.
12:49 Have supplier back-ups
She was first cab off the rank. She was so ready to go. So sometimes it’s things like that, but even just having a thought about it a little bit. Just have started thinking about the future. We are ready for it. Same thing with suppliers. Your supplier goes bust. It shuts up shop. They have a factory fire, whatever. The supplier is no longer there. If you have at least done some research on who backup suppliers would be. You’re going to be further the way than having to go Oh no my Oh my supplier What do I do now? And then go through all that despair and freak out phase, because you’ll actually be part of the way there, or even the whole way there. You already have them ready to go. You literally just have to sign a contract and off you go.
13:35 Moving from the status quo – the fear of the unknown
One of the biggest issues about changing and about moving away from the status quo, is that we fear the unknown. Okay. So we know what we know. And we feel comfortable with that. We’re in our comfort zone. You know what? You don’t really grow in your comfort zone. We have our comfort zone, but then we have the growth zone.
13:57 Move from the comfort to the growth zone
So we want to move ourselves out into the growth zone. So don’t be afraid of getting into that growth zone. What that might mean is you’re probably when you’re thinking of new idea and you’re anti it. You’re probably focusing on the risks, the uncertainties and the negatives. What about also focusing on the positives? What good things could this opportunity bring.
14:21 Look at both do something and do nothing options the same way
Likewise on the flip side, when we’re looking at what we know status quo, instead of just focusing on the benefits and what we know. Focus on the risks. What happens if this happens? And then suddenly horse and cart aren’t the in thing, what happens if cars, take off. What happens if streaming takes off and people don’t come to a video shop.
14:43 Can you afford not to change?
So my question for you in regards to change, can you afford not to change? At least to investigate it further. Don’t be like the taxis, the Blockbusters or the horse and carts of this world. Please make sure you look into opportunities and consider whether they really are right for you, maybe they’re right to park for later, or maybe they genuinely aren’t the right opportunity for you.
15:14 Status quo is NOT the least risky option in many cases
But the status quo, please do not think that the status quo is the low risk. Status quo is often the riskiest option. Just look at Blockbuster.
Thank you for listening in today. I hope this has sparked a bit of thinking on your behalf, so that when new opportunities present themselves, that you actually consider them more fully and don’t just stick in your comfort zone.
15:38 Thought leadership is a FAQ Business Podcast pillar
On our podcast we do like to have thought leadership episodes and this has been one of them today. Thank you for listening in. I’m Jane Tweedy, your host of the FAQ Business Podcast. And I would love to have you subscribe and hear from us again soon. Catch you later.
15:56 Please subscribe and review our podcast!
Thank you for listening to today’s episode of the FAQ Business Podcast available on all good podcast services. You can subscribe today via FAQbusinesspodcast.com.au. Subscribe. Follow. Share, and where able review our podcast. We look forward to inspiring and educating you again on the FAQ Business Podcast.
Today’s podcast episode featured our host Jane Tweedy. Her details are as follows:
Jane is a Professional Certified Coach with International Coaching Federation (PCC with ICF), business advisor and trainer. She loves working with growing small to medium business owners who are doing the right thing, to help them do it right! Currently, Jane offers at least 50 live sessions a year to train small business owners.
Jane offers a variety of services to clients and her online school and membership site went live late 2021. Jane’s focus for 2022 is building the membership and online school out further, and offering implementable small group training – something she finds is often the missing link.
If you are interested in training, speaking, or anything else Jane has to offer, please connect via email@example.com or via the contact forms on our websites.
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