MBA2422 How Much Does Timing Matter in Business?

0:09Heyo! Welcome to the$100 MBA show. No fluff, just the good stuff with our practical business lessons. I'm your host, your coach, your teacher, Omar Zinhome. And in today's lesson, you will learn how much does timing matter in your business? You might have heard a successful founder say, our timing was just right. You might have heard this in an interview or maybe in their biography. But what does this really mean? Timing? Does it really matter that much? And if so, how much does it matter? That's what you'll learn in today's episode. Let's make sure timing is on your side when it comes to your business.

0:48I'm going to share real-world experiences of when timing really worked in the favor of a business and when it didn't, and how it caused the business to go out of business. We're also going to discuss how much of a factor is this. Is it make or break, or can you still succeed with poor timing? Let's get into it. Let's get down to business. In the not-so-distant past, there was a startup named Slack, founded by Stuart Butterfield back in 2013. Their goal was to revolutionize team communication. But the real magic happened in 2020. As the world grappled with the COVID-19 pandemic, companies swiftly transitioned to remote work, seeking effective ways to stay connected.

1:29Enter Slack. With its user-friendly interface and collaborative features, it was perfectly suited for that suddenly created remote workforce. The demand for their platform surged and propelled Slack to new heights. In just a few months, their user base expanded dramatically and the company became a staple for remote work teams globally. The timing was impeccable. Demonstrating how well-timed products, in sync with a global shift, can turn a company into a household name. Slack became so successful that in 2021, just a year after the pandemic started, they sold to Salesforce for a valuation of$27.7 billion.

2:13Now, let's jump into a different story. In the mid-2000s, high-end luxury retailer Burberry, under new leadership, embarked on an ambitious strategy to rebrand and capture a younger market. They invested heavily in exclusive design, signature plaid patterns, and an iconic marketing campaign. However, as they prepared for the global launch in 2008, the financial crisis hit. Consumer confidence plummeted, and the luxury market was one of the hardest hit during that time. The timing was just simply disastrous for Burberry. Their extravagant new line priced for a market that suddenly just vanished.

2:53The shelves were stocked with high-end merchandise that only a few could afford amidst the economic uncertainty that was happening. Burberry had misjudged the economic climate. They didn't see the writing on the wall, and they plowed ahead regardless of what was happening around them. This is a reminder that timing really does matter and it can ruin a major launch or even an entire brand if the timing is wrong. So what is timing anyway? The best analogy I can give is that timing in business is like catching a wave. Like if you're surfing and a wave comes by, you're going to catch the momentum of the wave and you got to be at the right place at the right time to do that.

3:30That's why if you go to the beach and you see surfers in the ocean, they're all kind of gathered in the same place. They're trying to catch a wave, and this is the area to do it. So they got the right place part, and now they just got to get the right time. In today's lesson, I'm going to go through some reasons why timing matters so much. And trust me, it's more than just luck. The first one is the biggest one, market trends. Riding the wave of market trends can make or break your business. Your job is to be ahead of the curve, not behind it. Wayne Gretzky, the famous hockey player, famously said, don't go where the puck is, go where the puck is going.

4:07This means that you're not always going to get it right. Sometimes you're going to go after something thinking there's a trend and it's not there. This happens in surfing all the time. You get up on your board and you think you got a wave. You're like, oh, I think I got a wave. No, and you wipe out. And that's fine, but eventually you will catch a trend and it will be glorious. If you're launching a product or a service that aligns with the current trend, you're more likely to capture the attention that you need and the demand you need. A good example of this of trends going on today is AI. A lot of people are building tools and software and services around utilizing AI because that's the trend now.

4:43People know that AI is a thing and you're going to get people's attention just purely because you're using AI in your product. Another reason why timing matters is that technology evolves. The tech that you are using today will change dramatically in the next 10 years, and it has in the last 10 years. Being in sync with technology advancements is crucial. Embrace the latest tools and platforms, and some of them are not going to be winners. Some of them won't continue, and some of them will. But that's okay. You're going to learn along the way. And listen, you don't have to learn everything under the sun, but don't be afraid to try things out.

5:20You don't have to invest and go all in on everything, but be aware of it so that if you feel like the trend is building, you can then jump in and your learning curve is minimal. I also like to see broader technology trends, meaning, yes, there are trends like people jumping on TikTok and doing Instagram reels and people jumping on YouTube and starting YouTube channels. What's the commonality here? Well, it's video, right? So it's actually better for you to be up to date with how to shoot great videos, publish them, caption them, all that kind of stuff. If you could do that, then you can utilize any of these platforms.

5:58You're not trying to study TikTok. Really, the underlying content here is video production. The next reason that you need to consider is economic climate. We talked about this with the Burberry story, but the economy is a wild beast and it will fluctuate and impact your business. What I found and what a lot of economists have found is that you're going to have to absorb some sort of economic downturn at least every 10 years. We had the GFC crisis in 2008, and then the COVID pandemic kind of shake things up about 10 years later. And we're kind of coming through that because of inflation. And you can expect something similar happening in 10 years.

6:40This is just what happens before the GFC crisis 10 years ago, dot-com boom and dot-com bust. So you can see there are patterns. History is a good fortune teller, right? It tells the future. So you know it's coming, so be prepared. If you're going to be launching a high-end luxury premium product, make sure you're not doing it during a recession. That might not be the brightest move. understand the economic climate you're in or about to go in and adjust your strategy accordingly. On the flip side, if you have some sort of money-saving product, affordable product, high-value product, you're going to do really well in tough economic times because people are going to come to you versus the luxury brand.

7:24So during recessions, companies like Walmart and Target and even local dollar stores, they do great because people are looking to save money. Another thing to consider is competitive landscape. Timing is everything when it comes to outshining your competition. If you can launch a better product or service at just the right moment, you will steal the spotlight and the market share. A great example of this is the iPhone. When Apple launched their first mobile phone, their product was so much better than any cell phone or mobile phone that was out there. Their biggest competitor was those BlackBerry phones.

8:04Remember BlackBerry phones? Research in Motion created these phones with these big keyboards. They were made out of plastic. Before that, it was Nokia phones. But basically, people got tired of these phones. The technology, the value of the phone was really not going anywhere. It wasn't really expanding. It wasn't really evolving. thing. And when Apple came in, perfect timing, people kind of got sick of these phones. Superior technology entered the market, dominated. What else you got to consider? Customer needs and desires. Consumer preferences change. That's just a fact of life, fact of business.

8:41And they can change fast. If your product addresses a current need or desire, you have product market fit, you're in business, but you have to stay in business, right? You have to continue to have product market fit because it could change. What they need could change. Stay in tune with your target audience so that you can know when it's time to pivot or enhance your offerings. Let's go back to Apple again. When the iPhone came out, it basically cannibalized its own product, the iPod. If you remember, the iPod was an incredible music player and they even had iPad video. We can watch videos on it with this tiny screen, but it was revolutionary at the time and their problems were like a thousand songs in your pocket.

9:20It was incredible. Steve Jobs and the Apple team knew that when they launched the iPhone, they're going to cannibalize their own product. They're going to actually destroy their own product. People aren't going to buy that anymore. They're going to buy the iPhone. But their idea is like, hey, we better do it because if we don't do it, our competition will do it. Might as well be us. Our customer needs are going to change. They're going to want more than just songs or videos. They're going to want to connect with the internet. And you're supposed to be getting faster in technology. Customers wanted to be able to answer emails on the go.

9:50People wanted to take pictures on the go. And that's where iPhones really shined because phones were really not that great at taking pictures before that. And not that the iPhone camera, iPhone 1 camera was incredible, but you actually got to see the photo really nicely with the big screen. So people's needs and wants change and you got to evolve with it. What else? Regulatory changes. Laws and regulations can impact industries overnight. Stay informed about the potential changes in your market. They could affect your business, not just negatively, but it could affect your business positively.

10:26You've got to be ready to adapt and capitalize on that opportunity. For example, EV cars. A lot of governments recently in the last 10 years have changed laws or even incentivized people to buy EVs, electric cars. So if your business deals with this genre, with this topic, maybe you're not selling EV cars, but maybe you're selling EV accessories, charging cables. Maybe you're an electrician and you're installing chargers in the home. Now that people are incentivized to buy these cars and they're getting rebates, maybe you want to start offering something that helps these types of customers that go along with this wave.

11:08I got one more tip I want to share with you when it comes to timing. And then we'll talk about how important is this? And this one is kind of an obvious one. We just went through it and it's global events. Whether it's a pandemic or maybe even a geopolitical shift or a war, they can significantly influence the business's landscapes. You've got to anticipate and respond to those events because that can make all the difference. A good example of this is Webinar Ninja, the software company I founded. When the pandemic rolled around, a lot of people had to move their business online, sell online, give classes, do workshops and webinars were a very highly searched topic on Google.

11:47So we got so much organic traffic just for the fact that people's needs changed due to this global phenomenon, this global change. And this really boosted our business big time and took us to a whole new level. But the opposite is also true. You got to be careful of things happening like a war where maybe the country that is at war supplies some sort of part that you need to build your product or is a supplier that is located in that country and it may slow down your production. This is why in business redundancy is very important to have backup plans to know that, hey, if I can't get this from this person, I can always get it from there just in case things change from a geopolitical point of view.

12:30Now, let's talk about how much does this matter? Well, frankly, it's not something you can easily measure. The right timing can turn a startup into a unicorn, and poor timing can sink even the most promising ventures. It's all about being vigilant, staying informed, having the ability to adjust your sails when the winds change. And don't blow your way. As Jim Rohn says, don't curse the wind, don't curse the sail. That's all you got. All we got to use and to utilize in our life is the wind and the sail. Use them to your advantage. The wind changes, change your sail, pivot your business, change what you're doing.

13:09To kind of put a bow on this, in my opinion, in my experience, the last 20 years of doing business, timing will matter at some point. You're going to face some sort of timing challenge or timing advantage or timing opportunity. So the point here is to be vigilant, like I said, and to be aware that this actually matters. And I want to make sure that I prevent loss, but actually utilize the timing for my own gain. I don't want you to obsess about this and think that, oh man, my whole business is going to come crumbling down because of poor timing. One of the things I learned from Richard Branson, the founder of The Virgin Group, through his books and his interviews and his courses and all that kind of stuff, is he always has a backup plan, an exit strategy.

13:55He asks himself when he does anything in his business, how could this go wrong? And do I have a plan for it? If you do that, then if things change, if the timing is not in your favor, you have a plan to pivot. You're all right. Don't worry. You got it covered. Thanks so much for listening to the$100 RBA show. If you'll love what you hear, make sure you hit follow right now on your favorite podcast app, the podcast app you're using right now, whether it's Spotify or Apple. hit that plus button so that you get our next episodes automatically. Also, by doing that, you support the show. You allow us to grow and expand and we continue to give you incredible lessons.

14:30Before I go, I want to leave you with this. I'm here to tell you that it's true. Sometimes you will get lucky with your timing. Hindsight's 20-20, you know, revisionist history, you'll go back and you say, yeah, I was smart. I did this because the timing was great. A lot of times it's just luck. Sometimes you just were doing so many things, you're trying different things, you're kicking up dust that you got lucky just by mere chance because you're doing so many things and you're giving yourself enough opportunity to get lucky with the timing. So if you're active, if you're growing, if you're learning, if you're meeting people, your chances of getting your timing right is much higher than others.

15:07So keep on going at it. Try new things, learn, grow, meet new people like I mentioned. This will allow timing to be on your side. Thanks so much for listening, and I'll check you in the next episode. I'll see you then. Take care.