Watch out for trends

Jeremy Tauri.

Sky TV made headlines when it announced it was expecting the number of subscribers to its core service to drop by 45,000 in the year to June.

This caused an immediate share price drop but should not have come as a surprise. Many people have been talking for months about the threat to Sky from streaming services, which allow you to watch pretty much whatever you want, when you want it.

We gave up Sky recently and instead are relying on a mix of Freeview, Netflix and the odd YouTube video for the little person. It's saved us $150 a month and now we've done it, I'm surprised we didn't do it earlier. The lesson to learn here is that businesses cannot get complacent.

The threat of customers moving elsewhere has been hanging over Sky's head for a long time - yet it has been late to try to offer anything to attract them. It needs to do something to alter its basic model if it is to stop the rot and retain its market position.

Could the same be said for your business?

Keep abreast of any changes that are happening in your industry. Sticking your head in the sand is never a wise move.

The worst thing you can do when faced with disruption is become negative and reject any attempt to work with it. Take accounting, for example. Software such as Xero and MYOB has removed some of the need for basic bookkeeping functions and developments are planned to connect this user software to the IRD for tax calcs. Those who are doing well now are businesses that offer something different, such as mentoring or business support.

Keep a close watch on what it is that your customers want. Offer it before they have even articulated that they want it.

It can be easy to get into a comfortable routine and keep doing what you have always done. But that makes it easy to be left behind.

- Jeremy Tauri is an associate at Plus Chartered Accountants.