{"id":84587,"date":"2022-11-22T11:30:00","date_gmt":"2022-11-22T15:30:00","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=84587"},"modified":"2022-11-30T15:46:14","modified_gmt":"2022-11-30T19:46:14","slug":"how-to-stay-relevant-in-business","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/how-to-stay-relevant-in-business\/","title":{"rendered":"How to Stay Relevant in Business: 3 Tips From an Expert"},"content":{"rendered":"\n<p>Does your business need a boost? How do you stay relevant in business?<\/p>\n\n\n\n<p>Staying relevant can be difficult because the market is always changing. That&#8217;s why Sahil Lavingia&#8217;s book <em>The Minimalist Entrepreneur<\/em> teaches you how to prevent becoming irrelevant as a small business.<\/p>\n\n\n\n<p>Continue reading to learn how to stay relevant in business.<\/p>\n\n\n\n<!--more-->\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Staying in Business<\/strong><\/h2>\n\n\n\n<p>Once you\u2019ve gotten off to a successful start and have a customer base, Lavingia says there are some important steps you can take to ensure your business stays relevant and profitable and continues to grow organically. In this section, we\u2019ll explain his minimalist methods for ensuring sustainability, hiring the <a href=\"https:\/\/www.shortform.com\/blog\/hiring-the-right-people\/\">right people<\/a>, and creating a company they want to work for. Finally, we\u2019ll look at his vision of what the long-term goal of a minimalist business should be: improving your life and the world.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">1. <strong>Focus on Sustainability<\/strong><\/h3>\n\n\n\n<p>One of the major differences between a minimalist business and a <a href=\"https:\/\/www.shortform.com\/blog\/how-does-venture-capital-work\/\">venture capital<\/a> startup is sustainability. Lavingia tells us <strong>there are just a few reasons most businesses fail: overspending, hiring too quickly, and founder conflict.<\/strong> In order to be sustainable over the long term, you\u2019ll need to be careful to not make these mistakes.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Overspending and Hiring<\/strong><\/h4>\n\n\n\n<p>Carefully monitor your expenses to be sure you\u2019re <a href=\"https:\/\/www.shortform.com\/blog\/how-to-spend-less-money\/\">spending less<\/a> than you\u2019re making. This might seem obvious, but Lavingia says many business owners don\u2019t pay close enough attention to this.&nbsp;<\/p>\n\n\n\n<p>Some of the ways you can avoid financial problems are:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><a href=\"https:\/\/www.shortform.com\/blog\/pay-yourself-first-rich-dad-poor-dad\/\">Pay yourself<\/a> the minimum you need at first, and then increase it slowly as you\u2019re able to. Lavingia only paid himself $36,000 per year when he started his business. He raised that as the company grew, but tied his own salary to those of his employees, meaning every employee\u2019s salary increased at the same rate as his.&nbsp;<\/li><li>Avoid paying for office space if you can do your business without it. (Shortform note: <a href=\"https:\/\/www.forbes.com\/sites\/bryanrobinson\/2022\/02\/01\/remote-work-is-here-to-stay-and-will-increase-into-2023-experts-say\/?sh=3de8a97620a6\">People are increasingly seeking out remote employment<\/a>, and this trend is expected to continue. So by not having office space, you\u2019ll not only save money, but you\u2019ll likely also attract more applicants to your job openings.)<\/li><li>Do anything that you can with software instead of hiring a person, because software costs less than paying people. Don\u2019t hire anyone until you actually<em> need<\/em> help.<\/li><li>When you do need help in the beginning, hire freelancers on a contract basis, rather than permanent employees. Think about using people who are really interested in the business, and who could learn from you and potentially become full-time employees later.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li>Pay attention to what your customers are saying. Negative reviews can be financially damaging, so take them seriously.<\/li><li>If and when you want to invest more into expanding the company and you need more capital, crowdsource the funding from your customers and make them shareholders.<\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Founder Conflict<\/strong><\/h4>\n\n\n\n<p>If you\u2019re working with a partner or thinking of it, Lavingia cautions that it\u2019s important to <a href=\"https:\/\/www.shortform.com\/blog\/how-to-avoid-conflict-in-relationships\/\">avoid conflict<\/a> and the potential disaster it could cause your business. He says you should treat a business partnership like a marriage, and he offers the following advice:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Only work with people you trust completely.<\/li><li>Before committing to a partnership, discuss both of your values, visions, and goals to be sure they align.&nbsp;<\/li><li>Create detailed, written financial arrangements, so they don\u2019t become a point of contention.<\/li><li>Establish an exit plan, in case it doesn\u2019t work out.&nbsp;<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">2. <strong>Create Your Company Culture<\/strong><\/h3>\n\n\n\n<p>When it\u2019s time to bring on permanent employees, Lavingia says you should first be sure to <strong>make your company a place people want to work to stay relevant in business.<\/strong> Create your company culture thoughtfully and intentionally, and evaluate potential employees by how well they\u2019ll fit with that. Lavingia\u2019s process for creating a <a href=\"https:\/\/www.shortform.com\/blog\/building-a-positive-workplace-culture\/\">healthy company culture<\/a> that encourages long-term sustainability is:<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li><strong>Write a value statement. <\/strong>Think about what kinds of values you want your company to stand for, and make the value statement explicit and visible. This will set the expectations for how people should behave, including yourself, and how problems will be handled. You\u2019ll use this to evaluate potential employees and to remind yourself and others regularly what the company stands for.<\/li><li><strong>Be transparent.<\/strong> Be clear about what your intentions are as a company. Lavingia recommends sharing all company documents, including finances and salaries, to create a culture of openness and sharing.<\/li><li><strong>State your company values in job postings.<\/strong> This will attract people who will be a good fit and turn away people who won\u2019t. In the hiring process, stay focused on whether the applicant will align with the company\u2019s values and culture. It needs to be a mutual fit.<\/li><li><strong><a href=\"https:\/\/www.shortform.com\/blog\/how-to-empower-employees-as-a-leader\/\">Empower your employees<\/a>.<\/strong> If you give your employees autonomy and treat them as peers, they\u2019ll feel empowered, manage themselves, be loyal to the company, and care about providing the best service to the customers. Rather than top-down management, Lavingia says to think of it the opposite way: Your employees serve the customers, and you serve the employees.&nbsp;<\/li><\/ol>\n\n\n\n<p><strong>Hire people who will improve the company. <\/strong>Try to find people who have talents or skills you <em>don\u2019t<\/em> have, so they can contribute those to the company. Hiring others who share your <a href=\"https:\/\/www.shortform.com\/blog\/entrepreneurial-perspective\/\">entrepreneurial mindset<\/a> is also a good way to bring motivated, dedicated people onto your team. Consider looking within your customer community for potential employees. Lavingia posts his job openings on his social media sites, thereby reaching out to people who are already his followers.<\/p>\n\n\n\n<p>Lavingia says it\u2019s natural that sometimes an employee won&#8217;t work out. While that requires a difficult conversation, you have to be honest and straightforward. Don\u2019t think of them as being a bad employee, just an employee who wasn&#8217;t a fit. Offer them any assistance you can with finding a new position.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-3-improve-your-life-and-the-world\">3. <strong>Improve Your Life and the World<\/strong><\/h3>\n\n\n\n<p>Finally, Lavingia addresses the long-term goal of a minimalist business, which is also the last step to staying relevant in business. He reminds us that this kind of business isn\u2019t about getting rich\u2014it\u2019s about creating a satisfying life, contributing to something you care about, and being financially successful in the long run.&nbsp;<\/p>\n\n\n\n<p>Building a business, Lavingia says, should be about making the world <em>and<\/em> your own life better. Working extreme hours is self-defeating. So he says <strong>you should use your <a href=\"https:\/\/www.shortform.com\/blog\/achieving-financial-success\/\">financial success<\/a> to create \u201ctime affluence,\u201d or a wealth of free time, so you can enjoy life.<\/strong> He gives a few pieces of advice for using your financial assets to create the more valuable assets of time and life satisfaction.<\/p>\n\n\n\n<p>As your business grows and prospers, Lavingia suggests you think about automating and outsourcing anything you can, to free up time for yourself. Sometimes spending money to create free time is well worth the tradeoff. Then, he says, you can <strong>use that free time to go back to being a creator<\/strong> and work on projects you love, whether it\u2019s something you want to do for pleasure or starting another business. In this way, <strong>your business should not trap you, but free you.&nbsp;<\/strong><\/p>\n\n\n\n<p>He also suggests <strong>using your financial success to contribute and give back to the world<\/strong>, by supporting other entrepreneurs, social justice and environmental causes, or whatever you care most about. In 2020, as a response to racial justice issues in the US, Lavingia decided he wanted to invest in a Black-owned tech startup. He posted this on his social media sites, inviting Black entrepreneurs to contact him. He received over 200 emails in response and ended up investing in four of these startups. (Shortform note: This is called \u201c<a href=\"https:\/\/www.thehartford.com\/business-insurance\/strategy\/alternative-funding-startup\/angel-investors\">angel investing.<\/a>\u201d It\u2019s different from venture capital because an angel investor uses their personal funds to invest, rather than an investment fund. Angel investors also typically expect a lower return on their investment than venture capitalists.)<\/p>\n\n\n\n<p>And finally, Lavingia says you should always keep in focus your original purpose of wanting to help people in a community you care about. You\u2019ll likely want to embark on a new endeavor at some point. When you do, take some time to reflect on why you originally wanted to solve the problem you did, why you align with the community you serve, and why you want to do the next thing. This will bring you back to your driving purpose and help propel you forward in a way that will continue to make your life fulfilling.&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Does your business need a boost? How do you stay relevant in business? Staying relevant can be difficult because the market is always changing. That&#8217;s why Sahil Lavingia&#8217;s book The Minimalist Entrepreneur teaches you how to prevent becoming irrelevant as a small business. Continue reading to learn how to stay relevant in business.<\/p>\n","protected":false},"author":14,"featured_media":82712,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[45,79],"tags":[812],"class_list":["post-84587","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-entrepreneurship","tag-the-minimalist-entrepreneur","","tg-column-two"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.3 (Yoast SEO v24.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How to Stay Relevant in Business: 3 Tips From an Expert - Shortform Books<\/title>\n<meta name=\"description\" content=\"The market is always changing, which means you have to change with it. 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