Wyse thoughts for November

Stuck in the Mittelstand with you…
Reflecting on the past four weeks it is clear that with constant turbulent news – whether it be war, recession firmly on the horizon or political leadership failures – that there have been some big questions about growth that required urgent answers, from how can we make the right or safe choice in a constant storm, i.e. ‘do I still want to do this?’ to more opportunistic queries, such as ‘how can I grow effectively and should I?’

Opening up Specsavers in the Netherlands in the great recession of 2008/09 I couldn’t help going back to a conversation I had with Doug Perkins, co-founder of Specsavers, AKA Dad, about the foundational structure of the German economy. I know, fun times… but if you’re looking for a successful recession sturdy business model – which I certainly was – then you can’t go far wrong with the German Mittelstand. Often cited as a model of economic success and the very backbone of Germany’s economy, the Mittelstand refers to a group of stable business enterprises, of which 99% are small to medium-sized and family companies. Making up 57.6% of employment in the country and 34.4% of national revenues*, they cover all branches of trade, crafts and the service industry. Many are manufacturers – we all know the big names like Bosch, Volkswagen or Siemens of course – but the key element of Mittelstand members is that they are all specialists in their areas, delivering high-quality products and services, which has formed a German niche known around the world for quality and fine workmanship.

Just like so many entrepreneurs they are very niche and truly understand what their customers want and deliver that. Crucially, the Mittelstand companies also appear to be surviving despite the impacts of the pandemic and the global economic downturn.

The nesting instinct
Not that nesting instinct… Niche comes from the latin word nidus meaning ‘to nest’ and in today's turbulent world, seeking your unique nesting place puts you in a clearer position in your industry and brings greater power in clarity for your customer, enabling you to stay close to their ever changing needs. This is also important for your future growth in a world that is building strength from ecosystems: how do you, or more importantly, how can you “nest” in an ecosystem to position yourself to lead or to provide greater customer value? A niche helps you position yourself clearly in your industry so you can be found and discovered by those that need you most, whether it be your peers or the customer themselves.

So how can you take inspiration from the German Mittelstand?
First of all, take heart from the fact that providing niche products or services is a vital part of every economy and usually greatly appreciated by the customer base. Niche does not have to mean small or weird (well, maybe sometimes but weird can be good!); think of it instead as strength and power in a changing world and you are the opportunist always looking for new partnerships and new ways of doing things.

So as we face another period of uncertainty our niche positioning could prove our advantage. As my mother always said: “stick to the knitting” and knit your way into a stronger future, your way, in your niche..

Agnes discovered for herself that finding her niche could turn a broad wish into a clearer opportunity: It didn't make her smaller, it gave her the freedom she was looking for. By understanding what Agnes was truly passionate about she was able to find a clearer path for her company, Mended. Her story is interesting to read if you feel frustrated that you are not connecting with your business in the same way you once did and are wondering whether the love has gone. By Agnes understanding her true passion and translating it into a clearer personal purpose it was easier to drive the business towards her customer needs. If you are confident with who you are, you seek to grow your business from the eyes of your customer and their needs and not from what you think the answer is.

Finding your right next step
Wyseminds was created to keep good business ideas alive. Whether you’re feeling stuck, frustrated, maybe even a bit on your own we’re here to support you in bringing back the joy of running your own company. There are many different ways we can support your growth journey, one of them is to start the free trial of our online support programme, Your Journey, where you’ll be able to take our growth evaluation. When you receive your personalised report, I hope you’ll start to understand how ready your business is to grow, where you are now and ideas of what to do next. There are other resources there too for you to make the most of your guide - all for free! No strings attached.

Join Your Journey in time for the final growth workshops of 2022! 17th November 10-12pm, 24th November 10-12pm and 29th November 4-6pm.