When Breaking Rules Leads to Innovation

Sometimes It Is O.K. to Break the Rules

“If you always do what you’ve always done, you will always get what you’ve always got,” Henry Ford famously stated, a quote that resonates strongly in today’s rapidly changing business environment. Evan Wise, the cofounder of Indie Insights, took this a step further by suggesting, “If you always do what you’ve always done, you will get less.” This statement acknowledges the intensifying competition brought about by digital advancements in retail.

Continuous Improvement vs. Change

Understanding the difference between continuous improvement and change is crucial for any retailer. Continuous improvement involves making slight adjustments to existing processes. It’s about refining and polishing what’s already there. Change, on the other hand, is a pivot or a complete overhaul of current practices. Both strategies play integral roles within a business’s overarching strategy.

Consider this: Have you been in business for over two decades and spent your time merely shining the apple? Or have you implemented some fundamental changes to adapt to the market’s evolving landscape? The difference between remaining stagnant and thriving often lies in the willingness to break away from established norms.

Rethink Your Own Rules

Is it time to reevaluate the rules that govern your business operations? Here are some areas ripe for reconsideration:

Markdown Strategies: When do you initiate markdowns? What is your strategy for first markdowns?
Inventory Transfer: If you operate multiple locations, what are the rules for transferring inventory?
Logistics Operations: How much inventory is sitting on a UPS truck each night? What are the associated shipping and personnel costs?
Reorder Criteria: When is it appropriate to reorder stock, and what criteria, including timelines, inform these decisions?
Marketing Strategies: How are your advertising and marketing efforts structured?

Too often, businesses base their strategies on confirmation biases—sticking with what has always been done because enough evidence supports maintaining the current course. But there comes a time when change becomes not just beneficial but necessary.

Share Your Journey

Every retailer has a story about a moment when they took a different path. Perhaps you can recall a time when you ventured off the beaten path, taking a risk that ultimately paid off. Share your experiences and insights with others who may be hesitant to change their ways, and help foster a community of innovation and growth.

Your Path to Innovation: A Checklist for Independent Retailers

Evaluate your current markdown strategies and identify areas for improvement.

Analyze inventory transfer processes across locations to optimize costs.

Assess logistical operations for potential cost savings in shipping and personnel.

Define clear criteria and timelines for reordering stock.

Revisit marketing strategies and explore new channels and techniques.

Host a brainstorming session with your team to identify areas for potential innovation.

Conclusion: Embrace the Change

Accepting change is never easy, especially if you’re in a business where traditions run deep. However, breaking the rules doesn’t necessarily mean discarding them entirely. It’s about evolving them to meet new challenges and opportunities. The journey from doing what you’ve always done to innovating for future success may require a leap of faith, but it also presents an exciting path towards growth and sustainability. By sharing your insights and adopting new strategies, you can transform your business into a dynamic player ready to thrive in a digitalized marketplace.

Take a moment to reflect on your business practices today and consider the areas where progress might require bending, or even breaking, the old rules. It’s often in these moments of transformation that businesses discover their true potential.

Marc Weiss

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