I am enamored with Dubai…the buildings and resort construction primarily. I came across this incredible video today of two men base jumping off the soon to be completed Burj Dubai. It is amazing…enjoy!
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My definition of a “material business change” is a new state of business in which there is a shock to the supply, demand, or inner company dynamic leading to a shifting change in how the business will be later conducted.
For instance, someone of great importance at a company leaves. Or, the raw material costs of your current products are increasing and it will be unprofitable soon.
In my estimation, any successful enterprise finds a way to navigate these changing circumstances to “make things work.” Other times there is no choice other than to shut down and start over doing something else.
At the dawn of every business I firmly believe we choose our later challenges. If you are the guys who started Buffalo Wild Wings, they are aware that their business is affected when chicken wing costs increase. If Steve Jobs were to die of a heart attack tomorrow, you can bet Apple’s stock would collapse at least 10%, if not more.
This discussion involves strategy more than anything. How does Apple hedge against Jobs leaving? How does BWLD shield themselves from rising prices?
In my opinion, this is when the cream rises and the talents of the founders and executives are tested. Are you the Michael Jordan who wants the last shot with the game depending on him? Are you the Tiger Woods teeing it up on 18 needing a birdie to win? When times are tough, big time players make big time plays. Still, even Michael Jordan or Tiger Woods can’t win every game. The difference is they believe they can every time.
