The Perils of Being a Lemming

How many times have you found yourself wanting to emulate a competitor or a benchmarking business that has a good idea? Do you kick yourself for not thinking of something that should have been so obvious? Do you really have to have the same lines as the competitor down the street? Is imitation really the sincerest form of flattery? What we don’t typically ask about a new line, new product or service that you want to acquire and/or offer is how do you know if it will be successful?
We often imitate others or replicate past practices without asking fundamental questions such as was the new line someone else acquired as good as projected or does updating what currently exists make the most sense? How well did the manufacturer or display perform? What was the quality of the customer service? How flexible is the offering? How are problems addressed and how quickly are they resolved? We tend to be enamored with bells and whistles and forget to ask the difficult questions.

Next time you come across a great new idea, don’t immediately jump on the opportunity. If it is a great idea today, will it be a great idea tomorrow? Ask what if questions. Seek out fellow BKBG Shareholders that may have experience with a line or other business colleagues who have no skin in the game and can take a less emotional view of the opportunity. Ask them if they see the same upside potential that you do and ask them what they see as the downside.

There’s something to be said about acting impulsively and taking action. However, when major investments of either time, expertise or resources are involved, a shoot, ready, aim approach may not be in your best interest. The key is to know when immediate action is required and when you can take a step back to think things through.

Billionaire investment guru Warren Buffet may have said it best, “The difference between successful people and really successful people is that really successful people say no to almost everything.”