There is a famous phrase in Bengali which states ‘Today’s king can be tomorrow’s beggar’. Nokia used to be the king. At one point, they had 80% of the global mobile phone market. And then, along comes iPhone and boom, the rest is history.
The mature business, faces a constant barrage of challenges and threats. Of course, the mature business also has a plethora of opportunities and strengths that they can leverage.
Nokia was a mature business on a growth path. They had strong experience in their space and could meet the needs of the market. But they got caught off guard. They didn’t pay enough attention to changes in technology. They simply reacted too slowly and had an air of superiority because of their success and maturity. Unfortunately, a mature business, even a powerhouse like Nokia, or Kodak as another example, can end up losing in the end.
It’s not all doom and gloom, however. There are plenty of small to medium mature businesses that succeed year in, year out. These businesses provide for an excellent lifestyle for the owners, and a great place to work for everyone involved in the business. Some even go on to becoming household brands, like Blackmores or Atlassian, successfully navigating the challenges of their maturity.
From an advisors perspective, working with mature small to medium businesses is quite enjoyable. There is this confidence that comes with age, and wisdom and knowledge that the business owners and their team gain through the many years of being in operation. It’s a double-edged sword, however. While it’s great to be in a position where your customers and income are relatively stable, maturity can lead to complacency and the cobwebs setting in. “This is the way we do things around here” is a dangerous statement seasoned advisors have heard many times in the mature business. Why is this statement dangerous? Because this frequently signals that rough weather lies ahead for the business, unless things change.
Our experienced team of advisors here at Benchmark Business Advisory have years of real-world experience and exposure to many different types of businesses, which is why we can bring a fresh perspective into the mature business. Whether it be digital transformation, refreshing a strategy or a brand, or focusing on people and operational excellence, Benchmark Business Advisory is your partner on your business journey.