One of the most well-known “coming of age” milestones happens when we learn to drive for the first time. It is such an exciting and scary moment in life, and is chalk full of new information and motor skills to learn. Before we even start the car, we are educated on safety precautions; seat belt on, seat at an appropriate height and reach, hands at 10 & 2, and to check your mirrors. We are instructed to adjust all of the mirrors prior to starting the car, to ensure a clear, unobstructed view of the world around us. Once on the road, we are regularly reminded to check all of the mirrors, and our blindspots, to keep an eye on the flow of traffic and to have enough time to react to the constantly changing environment around us. We are taught that changes happen within seconds, and if we are not paying attention, the consequences could be dire. 

As with driving, running a business requires us to constantly check the mirrors. Changes in your business, your industry, your market, or any other number of sources that influence your business lifecycle, are happening every minute of every day. If you aren’t paying attention, or making real-time adjustments, your business will inevitably get left behind, or worse, blindsided. Let’s take a look at what each mirror represents, and how to manage consistent monitoring and adjusting. 

The mirror we use the most, both in driving and in business, is the rear view mirror. As the name suggests, the rear view mirror is utilized to view what is behind us. In the world of business, we would refer to this as our historical data. The rear view mirror not only depicts what is behind us, but also what could be catching up to us. From the driving perspective, this could be reflected as a car that is fast approaching without slowing down, which could result in a collision. The business perspective isn’t much different. The historical data we gather for our businesses is not just a story of our past, but rather a rough draft of our future. Historical data - such as web and/or SEO analytics, sales analytics, or seasonal trends - provides a clear trajectory of what’s to come if nothing changes. This information is available by taking the historical data and using it to forecast for the future. For instance, if your historical data shows that for the last two years your business has experienced an average 23% increase in demand from May through August, you can forecast that projected increase to the following year. This insight allows you to increase staffing and supplies to accommodate the increase in demand, thereby ensuring your capability to meet or exceed your customers’ expectations. The following year’s data will reveal whether you met or exceeded expectations by providing whether the additional demand stayed the same (met expectations) or increased (exceeded expectations). Then you simply repeat the process, based on the new data.

The other mirrors we use to check the environment around us are the side mirrors. In driving, we most commonly use these mirrors when we need to change lanes, to ensure there is a clear, risk-free (or low-risk) path available. It is also common to use the side mirrors to ensure our ongoing safety, by making sure the other cars are staying in their lanes. Again, in business, checking your side mirrors is pretty similar. Let’s say you have decided to change business lanes; rebrand, new service or product line, new market, or even business reengineering. It is imperative, at this juncture, to check your side mirrors. In this instance, checking your side mirrors would involve a competitive analysis of the industry and/or market surrounding the change. This analysis could be compared to a more targeted, detailed version of a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis. The takeaway here is that whatever change you plan to make, you need to understand what and how your competitors are doing, and how you will stand out above the crowd. You likely executed a SWOT analysis on your business when you were first starting out, and you may be wondering why you would need to execute this step again. Just as with the rest of our rear view mirror (historical data) views, the analysis you executed at the start of your journey was already outdated from the moment you completed it. Prior to changing lanes, it is imperative that you check your side mirrors.

In addition to the two aforementioned instances of when it is important to check your side mirrors, it is also important to do so without a specific prompt and on a regular basis. Depending on the size of your business and industry, you may choose to check your side mirrors once a quarter, twice a year, or once a year. The important thing here is that you execute a competitive analysis on a regular basis. The reason for the consistency is simply to ensure that everyone around you is staying in their lane. Things to keep an eye out for in this realm include: competitors starting to offer your unique services, competitive pricing changes, take-overs, acquisitions/partnerships/mergers, and even emerging markets and/or businesses. If you wait to check your side mirrors until you are ready to make a change, the traffic around you will have already left you in the dust, or worse, run you off the road entirely. 

The last checkpoint we are taught in driving isn’t a mirror at all, but is potentially the most crucial checkpoint; your blind spots. Every car has a blind spot - an area of the surrounding environment that isn’t reflected in any of the mirrors - and depending on the make and model of the car, can be rather large. In driving, checking your blind spot is the proactive final step to take prior to changing lanes or merging into traffic. The business adaptation of checking your blind spot is also a proactive approach, but should be a consistent practice and adjustment as well. Blind spots in business can come in many shapes and sizes, and are usually a direct result of under-planning or under-education. Perhaps one of the most common and avoidable blind spots of business are finances. As we discussed in our The Pulse of Business article, the health and viability of any business can be determined by its numbers. At any given moment, a business owner should be able to recite their high level numbers; YTD revenue, expenses and profit, at a minimum. The last component of business you want to approach from a reactionary standpoint are your finances. 

In addition to the action items provided in The Pulse of Business, one last example of preparing for a blindside is saving. Do you have a separate account for tax payments and payroll? What about a separate expense account? What about a run rate account; how many months or years would this account buy you if demand suddenly stopped? Identifying and consistently monitoring your blind spots will dramatically reduce the potential catastrophes that come along with getting blindsided.

As a whole, checking your mirrors and blindspots consistently throughout your business journey will provide you with the clarity, forethought, and competitive edge you will need to continuously achieve sustainable success. In business, as with life, those who come most prepared, will win most often. Keep checking those mirrors.

When you’re ready to take the next step, we’re here for you.