During my years as a financial advisor, I’ve seen firsthand how the ability to innovate and adapt can make all the difference, especially during times of crisis and unexpected events. In today’s rapidly changing world, the companies and individuals who are able to pivot and reinvent themselves are the ones who will not only survive, but thrive.

The COVID-19 pandemic is a prime example of this. When the world was turned upside down, we saw some businesses struggle to keep up, while others rose to the occasion and found new and innovative ways to meet the changing needs of their customers. Companies like Zoom and DoorDash, for instance, were able to capitalize on the sudden shift to remote work and online ordering, quickly adapting their products and services to become essential tools for navigating the “new normal.”

These are lessons that we can also incorporate into our personal lives. When faced with a crisis or difficult period of time, it is beneficial to be adaptable, tenacious, and resilient. We must also be willing to reinvent ourselves, if necessary (choosing a new career path, moving to a new city, learning a new skill).

The Importance of Diversification

The concept of innovation also applies directly to investing. If you are one of my financial advising clients OR you have read this blog for any length of time, you know I am a big believer in diversification. Not every business is going to be quick to adapt, and those that are slow to pivot or unwilling to change may struggle to survive during tough times. By diversifying your investments across a range of industries and sectors, you can help mitigate the risk of being overly exposed to any one particular area.

In short:

  • Diversification helps manage risk
  • Not all businesses will adapt quickly
  • Invest in a range of industries and sectors

It is also important to take a look at your portfolio from time to time (preferably with a financial advisor) and consider the companies and industries you’re invested in. It is possible some changes need to be made, given that not every business is able or willing to adapt or keep pace with the modern world. However, this “in the weeds” work is not nearly as important as simply establishing a diversified portfolio in the first place (read more in my article on long-term planning).

The Path Forward

Ultimately, the key to success in today’s rapidly changing world is the ability to innovate and adapt. Whether you’re an individual investor or a business owner, the willingness to pivot and reinvent yourself can make all the difference. By embracing resilience, tenacity, and a commitment to continuous improvement, you can position yourself for success, even in the face of unexpected challenges.

The businesses and individuals who are willing to step outside their comfort zones and embrace innovation are the ones who will come out on top. We are a nation of innovators, and I truly believe this is one of the keys to long-term success, both for businesses and individuals.

Leave a Reply