Do You Need to Change Your Startup Strategy at the Start of This New Decade?

The new decade has begun. With this new beginning, many would be entrepreneurs would be thinking whether there is a need to change their strategies. Across the horizon, many significant developments are taking place. The launch of 5G mobile networks makes the concept of an always on fast internet connection available anywhere closer to reality. In some respects, this is already happening. Coupled with advances in artificial intelligence, things could look more scary or promising depending on your viewpoint.

Inflation rates around the world continue to be relatively benign. In fact, central banker feel that inflation is too low for their comfort. Some observers expect further easing of monetary policy to continue for a while longer. What this means to the would be entrepreneur is continued low interest rates. However, the low interest rate environment also creates zombie companies which are able to carry on borrowing to continue a business which is hardly viable. Thus if you are eyeing a startup which competes against these zombie companies with the expectation of their demise, think again. They may be around for longer than you think.

There would be organic changes taking place. Organic changes tend to be gradual and relatively linear though sometimes logarithmic. For instance, internet speeds would keep on going up. Although Moore’s Law may no longer hold true, nevertheless, expect CPU and RAM speeds to further rise as well. Higher resolution television sets, personal computers and mobile phone screens would also be expected to improve. The distance range of battery operated vehicles would continue to improve. Prices of solar power panels would drop further with a corresponding rise in efficiency.

What would be more interesting would be non-organic changes which arises from innovation. Such changes tend to be very disruptive and unpredictable. Unlike organic changes, it would not be easy to predict non-organic innovations with much certainty. Before the advent of the smartphone, who would have thought it possible to use the mobile device for anything other that making phone calls and texting messages. Nowadays, purchasing a top end smartphone is like buying an expensive camera to go with the mobile device. Whether this trend would continue remains to be seen.

Sometimes non-organic changes arises from a peaking of organic changes or new concerns. For instance, the adoption of battery powered vehicles rose with the increase in worries regarding climate change from the use of fossil fuels. Thus concerns like climate change could be a key driver in many of the innovations coming this decade.

Amidst all these changes, entrepreneurs would be hard pressed to correctly identify areas which would lead in this new decade. What is worth bearing in mind is that entrepreneurs should be like chameleons and change when the environment around them shifts. Entrepreneurs have the advantage of being nimble and able to change at a short notice.