Today’s Show Recap
Thanks for listening to Makin’ It. On this week’s episode, we talk about Amazon unveiling Prime Airplane, Simone Biles’ Special K deal, how to avoid obsolescence in business and, finally, on Makin’ It or Breakin’ It, we ask if it’s better to start a business with credit card debt or a family loan. Let us know what you think of the show in the comments section at the bottom of the page!
Let’s get going!
Tommy, Todd and Brittany start the show talking about Amazon and how it is continuing to grow. Recently, Amazon purchased 40 cargo planes, seeking to go into the delivery business. This new faction of Amazon will cut into the business of other delivery companies, such as the United States Post Office, FedEx and UPS, and have the potential to make them obsolete.
When Jeff Bezos built Amazon, he had the intention of setting up a new model of retail on the internet that didn’t just include books. Bezos knew when he started Amazon that he was building toward something, and he has changed the culture of how we buy things and has set the digital footprint for others. Additionally, the culture at Amazon is fiercely competitive company, and it demands high-performance from its employees. The cargo planes are just another step toward Bezos’ vision. Do you think Amazon getting into the delivery market will make the USPS, FedEx and UPS obsolete? Tell us what you think in the comments section.
Next up, U.S. gold medalist and gymnast Simone Biles recently landed a deal with Special K cereal, giving her a two-sided cereal box. Many Olympians before her have landed other endorsements, most famously on Wheaties cereal boxes. Are the endorsements really the main goal of winning a gold medal at the Olympics? Tell us what you think in the comments section.
OMG Fact of the Week:
A raisin dropped in a glass of fresh champagne will bounce up and down continuously from the bottom of the glass to the top.
In the next segment, Tommy, Todd and Brittany talk about obsolescence in business, as discussed in a recent article in “Entrepreneur” magazine. There are many types of obsolescence in business, including equipment, technical, functional, planned and human.
Human obsolescence is on the rise with new types of technology including robotics and software. People run the risk of becoming obsolete as a person because they decided they weren’t going to keep up with the curve of change, instead of getting ahead of the curve. Obsolescence can happen in all sorts of professions, such as medicine and law. For example, a surgeon may have trained to perform a procedure perfectly for 20 years, and a pill may come along making the procedure obsolete. Middle managers are the most at risk of obsolescence because many are being replaced by technology or software, which are able to make decisions for them. Middle managers will have to escalate into higher level decision-making, or they will become obsolete. Fortunately, no one has found a substitute for the human brain. Working with the mind today is more relevant than working with the back. What do you think of human obsolescence? How do you think people can avoid it? Let us know in the comments section.
Sears is an example of a company struggling with obsolescence. Initially, Sears offered a means for customers to get products from department stores using the Sears catalog when people could not otherwise obtain them. Their business took off. Now, with the presence of Amazon, Walmart and Meijer, more customers are questioning why they should shop at Sears. While they are fighting obsolescence with their last bastion where they have maintained their reputation, their tool line, and adding on new products such as the Kardashian clothing line, they are still losing money every year. What do you think of Sears? Let us know in the comments section.
Another type of obsolescence in business is planned obsolescence, which is popular in technology and car companies. Parts and software can become deliberately obsolete to make way for newer models. What purchasers in companies need to do is to determine before purchasing technology is: Will the company get enough use from the purchase? Will the company get a leg-up from the purchase? Will the purchase make the company stand out? What do you think of planned obsolescence in technology companies? Let us know in the comments section.
The key to avoiding obsolescence in business is to be the person who is proficient in operating the automation. Automation can include software or equipment. Staying up-to-date on the latest knowledge in the industry and focusing on training are two steps people can take to stay relevant in business. Training and adaptation are huge deterrents to obsolescence. At tommyrunfola.com, Tommy offers entrepreneurial training that can help people avoid obsolescence.
No matter what type of obsolescence people are faced with, the beautiful part is that humans are very capable of changing and evolving no matter the circumstances that surround them.
Finally, Tommy, Todd and Brittany wrap up the show with the Makin’ It or Breakin’ It segment. This week, they discuss whether you should use credit card debt to start a business or borrow money from family. Of course, you should do neither if possible, as starting out with debt in business is not a good thing. However, if you must take out debt, the credit/loan is probably the better way to go since it doesn’t mix your personal life with your business. Borrowing money from family can not only interfere with your relationships, but it is statistically very improbable that the loan will ever be repaid.
The best way to start a business is to save up to start one because if you can’t even save money, you probably won’t be very successful in your venture. Then, once you have saved, you start the business as economically as possible. People have the misconception that it costs a fortune to start a business; however, there are many types of businesses that can be started for very little, specifically service related businesses, using savings if possible. In actuality, many businesses have started up on a shoestring, but the real talent lies in growing a business. Starting a business is all about the entrepreneur. Do you think you should start up a business using credit or a family loan? Do you know of a case where borrowing money from a family member was successful? Let us know in the comments section.
Thanks for tuning in to Makin’ It. Let us know what you think of the show and if you have questions about your business, send us an email at email@example.com or leave us a comment below. We love to hear from our listeners and we read comments on the air. We just might choose yours for next week’s show (so don’t forget to tune in!).
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Additional Resources for Entrepreneurs:
To learn more about Jeff Bezos, click here.
To learn more about Amazon, click here.
To learn more about Sears, click here.
Be sure to tune in every week to the Makin’ It Radio Show on your local station or listen to past shows anytime on iHeart Radio, TuneIn or the Makin’ It Now Archives section on our website at www.makinitnow.com.