All investments involve some degree of risk. Often, some of the most potentially rewarding investments are also the riskiest.
As it is the case with everything in life, investing in something new has its pros and cons. Choosing to invest in the right technology or service at the right time, can help you to achieve recognition. It also has the potential to promote your career and get you one step closer to achieve your career goals. Can being a first mover and investing in something new also help you gain a competitive advantage?
Drawbacks of being first
Being first is not always an advantage. First mover investments are often associated with significant start-up costs. Large startup costs are difficult to avoid in any investments, but it is easier to live with when you know the outcome of your investment.
Although first movers have an idea of what the end-result will be, it’s purely a hypothesis. Because they have taken a head start in investing in this new product, there is limited facts to support this hypothesis. There is always a risk of losing your investment. The new technology or solution may not live up to your expectations or in worst-case, it fails before your investment has borne fruit. And in the end, who will be blamed? The person who approved investing the product in the first place.
Being first – a way to get ahead of the competition?
Investing in new technology requires a potentially hefty financial commitment. In a world of increased competition, growing expenses and tighter margins, the temptation to be a little risk averse in your investments is only natural. But is it wise to refrain from investing in a new technology in a world that is getting increasingly digital by the minute? Instead of focusing on the risks, why not focus on the benefits?
By being first in line to invest in a new technology you can:
- Establish your product as the company standard
- Increase safety – an ongoing demand across industries
- Reduce costs – an ongoing demand across industries
- Make a strong impression on your customers which in time can lead to brand loyalty
- Establish your company as one who is willing to a take a risk and get a strategic head start when hiring talented new employees
- Gain an advantage when there is high cost for consumers to switch to other brands
Investing in an area such as new technology can be a great opportunity for you to get ahead of the competition. By providing you with control and the opportunity to rationalize, you can optimize your production and your general operation. Investing in new technology, also provides you the chance to establish your company as innovative. Ultimately, this can create an increased brand loyalty. Consumers generally tend to follow those who are willing to take a chance in improving the overall customer-experience. By being inventive and staying ahead of the curve, you can do just that.
If you wait too long, you risk being overhauled by your competitor – and lose the recognition as well as the reward.