Let’s talk demographics—specifically, how more of us are reaching those golden years. Back in the 1950s, kids under 15 made up 27% of America’s population, but now they’re at 19%. On the other hand, people over 65 have jumped from 8.3% to a solid 19.1%. Let’s call this group the Silver Age. What does this mean? It means industries like health care, retirement homes and cruises are on the rise, while education, maternity and car sales are holding steady.
Growth in the Silver Age Sector
Fast forward to 2015-2025, and the U.S. population is on track to swell from 321 million to 347 million. The catch? Around 70% of this growth will be people over 65, while the under 65 crowd is barely budging by 3%.
Economic Impact and the Role of Immigration
The biggest impact of these trends is on economic growth. Contrary to popular opinion, we need 1-2 million immigrants annually to support a 2-3% annual economic growth rate. Currently, a significant share of about 300,000 jobs being created monthly are from immigrants filling some of the over 9 million job openings. In short, labor shortages rather than unemployment has become a critical economic dilemma. This trend is also projected to continue for several years, especially with declining birth rates and a declining population in the child-producing ages.
New Chapters Later in Life
Getting older doesn’t mean life slows down. As we approach silver age, retirement considerations can replace career and lifestyle considerations. Yet it’s also a chance to put all that experience to work in new ways. The key is staying flexible and open to change, which can be tough, especially when longtime friends start to drift away or we lose them. Let’s flip the script on the retirement age debate and talk about how we can better engage the wisdom and experience of our seniors, maybe through part-time gigs or flexible work setups. There are lots of paid and unpaid opportunities to expand our careers with new opportunities.
Fostering Connections
We also need to maintain old relationships and build new ones. Calling old friends, meeting former colleagues and making new friends can be highly satisfying. Retirement homes, religious organizations, and fitness centers are examples of places where one can foster social relations. Trips and visits can enlarge one’s network. Complimenting people, having company, and hugging can all enhance relations. It’s all about nurturing the ties we have.
Financial Realities for Seniors
It’s a bit of a mixed bag financially for the older crowd. On one hand, they’re set to hold a hefty chunk of the spending power, yet advertisers aren’t targeting them. And while retirement is on the horizon for many, there’s a whole industry that could be ready to serve their needs that’s just waiting to be tapped. On the other hand, living longer can mean facing tougher financial and social challenges, like health care costs and loneliness, not to mention the hurdles in staying employed.
Health and Well-Being as We Approach our Silver Age
Health-wise, the story’s a bit sobering. Most seniors are grappling with chronic conditions, and the rise in dementia cases is alarming. Eighty percent of seniors in the US have at least one chronic disease and 70% have at least two, with heart disease, stroke, cancer, and diabetes among the most common. But there’s a silver lining: Staying socially active is a serious boost for longevity and happiness. In fact, being isolated can hit the healthcare system hard in the wallet.
Innovating for an Aging Population
Globally, we’re still figuring out how to meet the needs of an aging population. There’s a real need for a care system that can keep up with this shift. For example, a recent study conducted in the United Kingdom revealed that more than 50% of older adults who needed assistance with daily activities do not receive support.
Catering to the needs of an ageing population is a largely untapped opportunity, but the space is fragmented. This presents a challenge, but also a space for a broader ecosystem to grow, where brand, trust and reliability from a multi-stakeholder base are critical for scaling up innovation, fostering teamwork and addressing weaknesses that are critical for success.
By considering alternative approaches, measuring outcomes, and embracing change, organizations can enhance their effectiveness and adaptability in an ever-evolving landscape. This includes incorporating new approaches, intuition and out of the box solutions.
Contact us for a FREE evaluation and get an alternative perspective on your business. We’d love to help you identify ways to adapt to current trends. No one has time for BS—so we’ll cut straight to the point and answer any questions you have. Reach us at: 914-632-6977 or BShlensky@startupconnection.net
Dr. Bert Shlensky, President of StartupConnection.net, has an MBA and PhD from the Sloan School of Management at M.I.T. He served as the President of WestPoint Pepperell’s apparel fabrics business & President and CEO of Sure Fit Products. More than 2,000 clients have benefitted from his business acumen over the course of his long career. He now focuses on working with select startups and small businesses. Please visit our website: https://www.startupconnection.net/ for more information.
Let’s get real about something that’s been buzzing around lately. People are going bananas over how Nvidia’s sales shot up from $27 billion in 2022 to a jaw-dropping $60 billion in 2023, with profits skyrocketing from $4 billion to $30 billion. That’s over a 500% increase. Naturally, everyone’s on the hunt for the next Nvidia.
But here’s the kicker: research by Anthony Pisano and others tells us that only about 25% of public companies actually see significant growth. Hitting a 10% growth rate is considered top-notch, and even that doesn’t last forever. As it turns out, about 75% of companies barely budge in terms of yearly growth.
Realistic Expectations and Strategy
The above results suggest several strategies that should be considered:
Consider that real potential for growth frequently gets overestimated.
Companies tend to forget that products have life cycles—sales can start strong, take a dip, and then drop after a peak (Peloton is a great example). Plus, we tend to miscalculate the math. Growing 20% yearly for five years sounds great until you realize maintaining that momentum is a Herculean task.
Companies can also overestimate growth potential of diversifying or adding products.
When it comes to diversifying or adding new products, more isn’t always better. Just throwing in more colors, models, or features often doesn’t do much. Diversification needs the same magic touch as your core offerings and can also see diminishing returns. Remember the 80/20 rule? It’s real—80% of your sales come from 20% of what you offer. And “stick to your knitting” isn’t just a quaint saying; it’s solid advice that often holds true.
Companies need to consider other growth alternatives to increaseeffectiveness.
Should companies pay more dividends and do buybacks rather than invest in growth strategies? Should efficiency and effectiveness be considered more than growth in strategic planning?
Pricing Strategies in the Mix
Pricing Opportunities Continue to Grow.
Increased tipping pressures are starting to reach backlash. Many grocery chains are adding prepared foods to capture some of the eat-in market and to offer an alternative to the high prices of dining out.
Amazon continues to loom large, not just with prices but with selection, service, and speedy delivery. For example, one day shipping can be a game changer compared to visiting a store with low inventory, poor service, and inadequate staff. This puts traditional retailers in a tough spot, especially when they’re cutting back on offerings and service to boost margins, making Amazon even more appealing.
“Free” is not a dirty word. The concept of “Freemium” is more than a business model. It’s also a pricing strategy. Offering something for free and then charging for upgrades is a proven model (think Google and Facebook). Ancillary aspects of the Freemium strategy include samples, blogs, demonstrations, contributions to charities, etc. — these can all create new opportunities.
The Power of Logistics and the Internet
Logistics, sourcing and distribution efficiencies can drastically increase sales and profitability.
Efficient logistics, sourcing, and distribution can significantly cut costs and boost sales. Fast shipping and direct delivery methods can also make a big difference in pricing and profit.
Embrace the Internet.
The internet is a game-changer. Google, Facebook, and Amazon are essential players, whether as suppliers, customers, or information sources. Using the cloud, analytics, email marketing, and online ads can significantly enhance sales and leads.
Culture and Intangibles
In observing organizations, I consistently find culture, expectations and excellence greatly affect success more than we acknowledge.
While skills, finances, competition, and operations are all crucial, it’s often the intangibles that set you apart. For example, embracing risk, fostering passion, and cultivating a collaborative environment can greatly enhance effectiveness.
In summary, chasing growth for growth’s sake can be a wild goose chase. Instead, focusing on sharp execution, exploring alternatives, and prioritizing efficiency and profits might just be the smarter move.
I’d love to hear your examples of how growth can be achieved through a variety of strategies. You can find me at Bshlensky@startupconnection.net or 914-632-6977
Dr. Bert Shlensky, President of www.startupconnection.net, offers experience, skills, and a team devoted to developing and executing winning strategies for your new or established business. Our strategies help you increase your bottom line, and includes clear steps, with access to over 150 free articles and templates, to help facilitate your efforts and guide your process to profitability today. We are here to help you get on track and stay there as you move forward with your business.
It’s easy to get started! Just email Bshlensky@startupconnection.net or call 914-632-6977.
I recently spoke with two aspiring entrepreneurs about launching new businesses. Unfortunately, their chances of success seemed slim because they were more focused on their dreams of wealth than on the essential groundwork needed to thrive. They were simply unwilling to do the thinking, research and planning to be successful. Try not to be part of the 90% of entrepreneurs who fail within 5 years.
For example, the first requirement is to simply write things down. Let’s break down what’s crucial: first, you need to document your plans. This doesn’t have to be fancy; goals and strategies. Start with a flexible document that evolves as you progress, focusing on substance over style. If you can’t articulate your plans in writing, you probably haven’t thought them through.
The initial requirement to develop a successful business is to be able to describe it. What is your business concept? What do want to do, why are you different and why will you succeed? This will change as the concept evolves, but you need a framework to develop and evaluate the components of your business. This framework further guides your development and evaluation process as your idea evolves. Entrepreneurs who fail frequently don’t do this.
Consider the key components of the business. Pricing, quality, service, variety, distribution and marketing are just some of the considerations. Your approach will vary greatly depending on whether you’re selling high-ticket items or everyday goods. For example, selling Superbowl tickets for thousands of dollars is quite different from the cheap umbrella salesman who suddenly appears when it rains.
Communicate your unique value proposition to your target audience. This is one of the most difficult tasks of launching a new business. We all get excited about our differences, but does anyone understand them? Do enough customers care about your difference to change their behavior, or are they committed to a “we’ve always done it this way” mentality?
Develop, test, measure, and adapt. Business is dynamic, so your approach must be too. Many plans, forecasts, and proposals are done in a static format, with one-dimensional analysis and results. Often, they are flawed because we live in a more dynamic and interactive world.
For example, branding, marketing, pricing, and operations all must be viewed as an integrated program rather than separate and isolated activities. Similarly, businesses need to have alternatives at the ready, and processes in place to adapt. Mistakes will occur. Remember, Thomas Edison tested thousands of light bulbs before succeeding.
Will you make money? Many entrepreneurs who fail start with the wrong question: How do I raise money? But they haven’t worked out the details of why they need money, what they will do with it, and how they will pay it back.
I suggest an almost opposite approach. Develop your needs, resources, plans and cash flow and then execute programs to raise capital. Some tips to improve this:
Develop initial timed estimates that will be continually revised.
How much revenue, expenses and profit will you generate over certain periods?
What assets do you and associates have and how much can you afford to risk?
When it comes to financing, focus on understanding your needs, resources, and cash flow before seeking capital.
There are a number of tools to reduce investment needs. These include borrowing against cash flow, outsourcing, pledging personal assets, and developing investments as the business progresses. Outsourcing efforts like manufacturing, distribution, services, and rent are particularly recommended to reduce requirements and adjust as the business grows.
As a rule, most businesses take six months to a year to even start. Consider how long it will take to get off the ground and calculate your startup expenses accordingly. Have you detailed the startup expenses and investment costs to start the business? Those include overall expenses, equipment, salaries, website development, product development, administration, pre-payments (like rent deposits) and more. Remember that upfront marketing, promotions, public relations, and development costs can affect income and cash on hand.
Digital is a critical aspect of almost any entrepreneurial pursuit today. Digital tools are essential in today’s business landscape, so plan to invest in a website and other tech necessities. Digital marketing, like Google ads, frequently has the advantage of both testing and pay as you go. As a result, revenue can occur much earlier than with traditional marketing efforts.
Can you deliver what you sell? Operations and logistics are frequently viewed as secondary functions that can be outsourced. However, efficient management of inventory and staffing can make or break a business.
Balancing and managing inventory to serve demand and reduce closeouts can be critical to success. Even in service businesses, scheduling staff to meet demand and avoiding time and money wasted can be critical to success. Reducing lead times, improving flexibility, and planning can improve effectiveness and lower costs.
Many operations experts have shown that 80% of sales are derived from 20% of offered products or services. Simplicity is key. Entrepreneurs waste time, money, and frequently add confusion by adding too much complexity to their business models. When and if possible, always go to the KIS Method (Keep it Simple).
In summary, success in entrepreneurship requires careful planning, evaluation, and execution. Many failures could have been avoided with better preparation. As my former manager once said, our low success rate wasn’t due to lack of effort; it was because many entrepreneurs were better off keeping their day jobs.
Starting a business is not easy. An entrepreneur needs to understand and express his/her passion. To do so, means to develop a mission statement and a plan. But that’s just the tip of the iceberg. Starting a business also requires enthusiasm, energy, and persistence to market your business concepts to suppliers, customers, and investors.
For more information download a free copy of my book, Passion & Reality for Business Success.
Dr. Bert Shlensky, president of Startup Connection, prides himself on his ability to define what is unique about each and every business. He works closely with individuals to develop a personalized approach that targets specific areas of concern and offers solutions based on his 40+ years of experience. His expert team will address your particular needs while working to save you time and money.
In recent months, we’ve witnessed two impressive instances of technological advancements:
Both Philadelphia and L.A. faced bridge collapses on their major highways. Surprisingly, instead of enduring lengthy repair times, both bridges were up and running in just a few weeks. What made this possible was a refreshing shift in approach—various agencies put aside their usual squabbles over goals and methods and focused on speed and quality. This collaboration led to the implementation of new methods and processes.
Similarly, amidst the tragedies of mass shootings, there has been progress in handling such events more effectively. The scathing report from the Justice Department on the Evolve Texas shooting indicates a growing recognition and demand for proper techniques. Key strategies in dealing with these shootings appear to be clear: authority, training, speed, and coordination among agencies. Although we haven’t yet figured out how to prevent them entirely, we’re making strides in responding more efficiently.
Both of these examples underscore the value of the proverb “it takes a village” when it comes to improving decision-making and outcomes. Another pertinent adage is “the chain is only as strong as its weakest link,” emphasizing the importance of addressing vulnerabilities.
Despite these seemingly obvious recommendations, they are often overlooked. Too frequently, we pursue simplistic solutions without fully understanding the complexity of the problems. For instance, proposals aimed at improving education or alleviating poverty often fail to consider the broader context. Enhancing education, for example, may prove ineffective if children are grappling with hunger, homelessness, or lack of support.
Here are some key considerations for fostering a collaborative approach:
View the whole issue and team: Just as in football, where quarterbacks are essential but dependent on the entire team, organizations should recognize the interdependence of different functions. Focusing solely on product and marketing without addressing logistics or customer service can lead to failures, as evidenced by the Boeing 737 Max situation.
Identify and remove bottlenecks: Streamlining processes and activities can enhance efficiency. Companies like Amazon have excelled in this area, significantly improving customer satisfaction through innovations like one-day shipping. Identifying and addressing bottlenecks through changes in procedures and technology can yield substantial improvements. Self-checkout, automatic tolls, and developing apps are just some examples of how this can be implemented.
Balance risk and opportunity: Fear of risk often hampers efforts to pursue promising opportunities. Sports teams are increasingly embracing risk by taking more three-point shots, stealing more bases, and going for it more on fourth down. Outsourcing can be an effective tool to find great resources, speed development, manage fluctuations and increase effectiveness. Businesses can similarly benefit from taking calculated risks to capitalize on opportunities. Additionally, effective management of liabilities, such as costs and inventory, is crucial for long-term success. For example, developing more common parts, stocking components, and focusing on high volume items can increase efficiency and reduce lead times.
Don’t ignore outlying opportunities and people. Optimizing resources, such as expert personnel in medical teams, can significantly enhance effectiveness. For example, head surgical nurses are critical to provide and manage processes, prep and recovery. Similarly, focusing on high-value customers rather than pursuing a broad market can maximize profits for businesses. For example, banks are focusing more on high wealth individuals which provide the most profits than diverse groups with little potential.
Incorporate change in your programs. Change is happening faster and is more volatile and diverse than in the past. Some examples include museums that have recently been directed to not show Native American exhibits unless they are properly approved and owned, resulting in shutting down many of those exhibits. Women’s rights and demographics are all causing dramatic changes as well. In another example, my granddaughter takes four courses via Zoom at an excellent university. Some professors have adapted to this well by developing new and creative programs. Others just put up a boring lecture in front of a few hundred students. Another example is the world’s largest cruise ship holding over 4000 passengers and 40 restaurants just began its first voyage. And organizations are still developing emotional solutions to work at home rather than understanding strengths and weaknesses and maximizing appropriate solutions. Whether it’s adjusting to new regulations or embracing innovative technologies, organizations must be agile and proactive in responding to change.
Address the weakest link: Pay attention to the viability and profitability of markets and initiatives. Understand the root causes of failures, such as the decline in IPOs. As a result of this, many investment bankers, analysts, real estate developers and lawyers are unemployed or underemployed. On that, it’s important to focus on sustainable growth strategies rather than short-term gains.
Manage exceptional people and solutions better. The University of Iowa women’s basketball team is energizing the game because of the excellence of their star player. While they focus on maximizing her skills, they also incorporate the team, and she is one of the team leaders in assists and rebounds. Michael Jordan is famous for passing the ball to a teammate in an NBA final when he was guarded by multiple defenders. In business we can get too dependent on a simple tactic in devolving competitive strategies. For instance, even though pricing is more complex than we generally acknowledge, there are other factors like service, speed, and in-stocks than can make pricing irrelevant.
In conclusion, while analytics and problem-solving are essential, fostering teamwork and addressing weaknesses are equally critical for organizational success. Remember, it takes a village. By considering alternative approaches, measuring outcomes, and embracing change, organizations can enhance their effectiveness and adaptability in an ever-evolving landscape. This includes incorporating new approaches, intuition and out of the box solutions.
Contact us for a FREE evaluation and get an alternative perspective on your business. We’d love to help you identify ways to adapt to current trends. No one has time for BS—so we’ll cut straight to the point and answer any questions you have. Reach us at:
Dr. Bert Shlensky, President of StartupConnection.net, has an MBA and PhD from the Sloan School of Management at M.I.T. He served as the President of WestPoint Pepperell’s apparel fabrics business & President and CEO of Sure Fit Products. More than 2,000 clients have benefitted from his business acumen over the course of his long career. He now focuses on working with select startups and small businesses. Please visit our website: https://www.startupconnection.net/ for more information.
When it comes to improving decision-making and performance, two strategies are often discussed: providing more support, positive feedback, and cooperation – or offering more challenge, testing, and experience. I argue both can be accomplished together.
Choosing Challenges Over Easy Wins
Consider this scenario: Would you prefer competing against an expert, facing challenges, and learning from the experience, or compete against someone where you clearly have the upper-hand? Most individuals lean towards the former, seeking challenges, gains, and knowledge.
For example, many women basketball teams will have some practices against men so their actual games against the competition seem less physically demanding. Even kids competing seek a greater challenge when they know parents are letting them win.
The Crucial Role of Culture
Achieving a balance between support and challenge hinges on fostering a culture of learning, growth, and experience rather than one centered on failure and win-lose outcomes.
Let’s look at the example of elite college admissions to schools like Havard and Yale where only about 10% of applicants are accepted. Instead of solely pursuing prestige and competition, individuals should also weigh factors like scholarships, specialized programs, diversity, and campus life when making decisions Schools like Cal Tech, Johns Hopkins, Northeastern, Carnegie Melon, Berkeley, Georgia Tech and University of Texas at Austin are examples of competitive choices.
Efforts to Foster a Positive Culture
In order to balance support and challenge, we need to identify and evaluate alternatives. Comparing resources, probability, potential results, and fit can add to success without the stress of win-lose.
The alternatives must be evaluated within the context of individual needs and goals. For example, retirement portfolios must balance income, growth, risk, probability, inheritance and other goals. My view is that we can afford more risk as we age, as expenses decline and investments increase.
Testing and Learning from Experience
There are more opportunities to test decisions than we often consider. Testing outcomes with simple models, evaluating alternative behaviors, risks, probabilities, and time frames contribute to informed decision-making.
Experience and practice reduce the challenges and provide support for future success. Many training programs are based on continued training, mentoring and trial and error. Even some aspects of surgery can be practiced on a computer. Hospitals with the most activity in providing a particular service have better results. Making the first souffle seldom succeeds, but practice can make them delectable. It is also beneficial to grow gradually and increase difficulty as you progress. For instance, I was surprised to learn that swimming is more difficult to develop conditioning in than running.
Setting Goals and Priorities
What are your goals and priorities? Financial versus social; long-term versus short-term; excellence versus perfection; development versus success; individual versus group. It is important to consider these dimensions and avoid conflicts and confusion.
Passion as a Success Factor
Passion is highlighted as an underestimated factor in success, yet it provides extra motivation, enables risk-taking, and often yields greater satisfaction upon success.
Understanding and Using Algorithms Better
We use algorithms but could understand and use them better. Don’t be afraid of math, probability and analyzing risk. Developing and using proven processes for activities can add to success. Even simple behaviors like eating, driving, exercise and health can be improved. I’m diabetic and know the guidelines, but sometimes I don’t follow them.
Innovation versus Experience
It’s important to evaluate the need for innovation versus experience. Complex problems frequently require innovation, while detailed procedures require more experience, as in, for example, open-heart surgery versus car repair.
When do you need to develop new solutions versus execute effectively? What is the balance between excellence and perfection in an effort? I argue we can frequently be more effective if we are striving for excellence.
Understanding the support and challenge game in management is key. Develop tools, consider alternatives, aim for win-win situations, measure outcomes, and set priorities. Ultimately, fostering an effective culture and open processes is essential for effective problem-solving, with a simple reminder to see the glass as half-full rather than half-empty.
Let’s start a conversation – no matter what stage you are in with your business. As an exercise, tell us how you have better managed challenges. Then, tell us what areas you to need focus on in order to see improvement.
Dr. Bert Shlensky , President of StartupConnection.net, earned a PhD from the Sloan School of Management at M.I.T., mentored a few thousand clients at Score and in his own practice, grew Sure Fit products from $50 million to $150 million in sales, including $60 million of direct internet sales, was President of WestPoint Pepperell’s Apparel Fabrics Business and headed the $400 million Culet Shirt Group. Dr. Bert knows what works and can help lead your company to greater profitability and success. For a free initial consult, reach out at bshlenksy@startupconnection.net or 914-632-6977.
When you want to stand out, reach out to Bert for the tools that will build your “sticky” brand. My focus is on understanding and analyzing your dilemmas and challenges, so your company becomes profitable faster.
Call (914) 632-6977 or email me at bshlensky@startupconnection.net. Don’t leave without signing up for our useful free eBook!
Feeling stumped or overwhelmed? Contact Bert at (914) 632-6977 or Email to start the process. Thanks!
