New perspectives to drive your business

I enjoy talking to people — particularly smart, interesting people. There is always something to learn or a new perspective to see. It is easy to be focused on your own thoughts and talking to other people helps to get a different view of the world.

This week, I met with the founder of a local outdoor store to get his perspective on the local outdoor industry. I am in the process of outlining a research project on the subject, so I thought it would be useful to get his thoughts on what has changed over the past 30+ years that he has been in business.

We talked about the shift in what people do with their leisure time; for example: young people are spending less time outdoors and older people are looking for adventures that are more comfortable. The activities people participate in has changed as well; running, trail running and hiking are increasing in popularity while traditional outdoor activities such as paddling, camping and skiing are becoming less popular.

Another interesting trend is that people are tending to dabble in multiple activities rather than become fully invested in one specific pursuit. I expect this applies mostly to activities that are less equipment-intensive or have low barriers to entry (such as availability, cost and required skill).

These trends coincide with recent research by the Outdoor Industry Association. The most alarming trend noted in their latest Outdoor Recreation Participation Topline Report (2009) is the decrease in participation by 18-24 year olds — in some cases significantly — in the majority of categories. Of the 28 activities surveyed, the key exception was increased participation by this age group in almost all water-based activities, including board sailing/windsurfing (+27%), sailing (+40%) and triathlon (+55%).

Overall, alpine skiing, snowboarding, canoeing, kayaking, camping and climbing experienced low or negative growth while the activities that had the greatest increase in participation include telemark skiing (+22%), snowshoeing (+22%) and backpacking (+19%).

Industry research, such as that generated by organizations like OIA, will help you gain insight into the trends within your industry. It is also important to have a good understanding of how external factors, such as politics and the economy, influence your industry and your business. Even a down economy will create business opportunities. However, it is rarely a good long-term strategy to jump on every trend.

One of the “keys to success” that Wally mentioned during our conversation was to stay true to your roots. Sometimes, this can be a challenge when you seen a great opportunity you think you should take advantage of. To make the decision — on where to expand or what opportunities to pursue — focus on those that are related to your organization’s core business; use your expertise and passion to build on the reputation you have already built.