Submitted by: JK Harris
You have to know every player in your industry. By every player, I mean your competitors, of course. In addition, you need to know the raw material and equipment suppliers, the manufacturers, the information and service resources, the regulators, the media—literally anyone who might at any point have some impact on your company. If someone is playing in your sandbox, even if it’s just a very small corner of it, you need to know who they are, exactly what they do, and how they can affect you. When you know that, you’ll also know how you can leverage yourself from their positions.
For example, you need to know who your suppliers and potential suppliers are—and you need to know your competitors’ suppliers as well. If one of your competitors’ suppliers went out of business or drastically dropped or raised prices, how would that impact your operation? Would your suppliers see an influx of business that might make it difficult for them to meet your needs?
Speaking of competitors, you also need to be aware of companies that are not currently direct competitors but that might move into that position at some point. For example, is there a company serving a different geographical market that might move into your area? Or a company with a related product that might expand its product line to duplicate what you do? You don’t have to spend as much time researching and monitoring these businesses as you do on existing competition, but you need to know who they are and have them in your line of sight in case you need to react to something they do.
Consider the transportation companies you depend on, whether it’s to move freight or people or both. Are they financially healthy? Reliable? How would it affect you if one merged with another company?
Are any labor unions on your playing field? Many Southern states have what’s known as right to work laws, which essentially means that labor union membership cannot be a condition of employment. But just because you’re in a right to work state doesn’t mean you can ignore labor unions. What if a labor union representing the employees of one of your major customers or suppliers goes on strike? How will that affect your business? By the way, if your company is not unionized and you want to keep it that way, the easiest way to do it is to treat your employees so well that they see union dues as a needless expense. Any union organizer will tell you that they can’t get a toehold into companies that treat their employees well.
Take a look at the long-range development plans for the areas in which you operate and consider what that might mean to you. Every city or county is covered by a comprehensive master plan that, among other things, describes future land-use plans based on the anticipated growth of the area. If the zoning of the land you occupy or land near you changes, what will that mean to you? Or if a street is going to be widened, a new highway put in, or access to your facility changed? The plan is a virtual player on your field and the people who control the plan are real players—get to know all of them.
As you study the other players, also think about everything that could affect them: man-made and natural disasters, labor disputes, regulatory issues, material availability, energy prices, and more. Add some players to your field that will serve as backups to your support team if you need them.
______________________
JK Harris is the founder of Flashpoints Consulting, LLC and of JK Harris & Company, the nation’s largest tax resolution firm. He is the author of Flashpoint: Seven Core Strategies for Rapid-Fire Business Growth, a popular and respected speaker, as well as a successful business consultant advising mid to large-sized businesses around the world.