How will your business evolve over time to survive and thrive.  If you wish to be in business 5, 10, 15, or 20 years from now you have to consider how the business will evolve over time.

All businesses that are in existence for over 10 years had to adapt to make their products and services relevant to today's customers.  Customers come of age and their taste and preferences change over time.  New technology is introduced often and you have to keep up to stay on the cutting edge and achieve efficiencies.    Doing the same thing today that you did 10 years ago will erode your market share and give competitors an advantage.

The question is how do you evolve your business.  Let's look at some examples:

Microsoft:  Microsoft started out as a software company that develops and sells software for the personal computer  before the Internet was invented.  Today Microsoft not only develops and sells software for personal computers, they also do so for businesses, they got into the cell  phone market by developing operating systems for phones; they also ventured into the hardware market by creating the XBox and bought the Nokia phone business; they got into the online video communication business by buying Skype; they went into the Cloud service business by creating Office 365; they also went into the Internet Search Engine business by rolling out BING; They also came up with a specific life cycle timeframe for their software products;  etc. 

Google:  Google started as just a Search Engine for the web.  Over the years they evolve the company to providing email services;  they rolled out software for phones and later got into the hardware business by buying the Motorola phone division; they went into the online video upload business by buying YouTube; they went into the Cloud service business by creating Google Drive;  they ventured into the online advertising business; they ventured into Social Media;  and many more areas.

Restaurants evolve their businesses over time to offer carry out, catering, and delivery.

The question becomes how can you help your business evolve over time.  Evolution has two key elements Opportunity and Necessity.

Opportunity:  Opportunities to evolve a business arise when certain factors exists:

  - Buying Opportunity:  A buying opportunity could present itself when another business offers itself for sale.  You're looking for companies that bring new technologies, new services that is in line with your business model that can add value to the customer.  This is one way your company can evolve.  This is one of the methods used by Microsoft and Google and many other companies.

  - Playing Field Changes: Opportunities can present themselves when the playing field changes as in the case of the birth of the Internet.  The Internet provided a platform for things to happen very quickly.  You can communicate and share information much faster.  The birth of the Internet drove the birth of new companies that created new products and services that didn't exist before. The introduction of the Internet also fueled rapid growth in technology.  All of this created a new playing field that fueled new innovations and created new opportunities.

Necesity:  The need for their businesses to survive drives entrepreneurs to evolve and grow the business.  If you want to provide generations of your family with a source of income and wealth, evolution is a necessity.  Many entrepreneurs go into business with the idea of continuing to own the business in the forseeable future.  If this is your plan then you have to evolve and grow the business so that it can survive into the future.

Different way in which you can evolve the business:

- Offer New Products Or Services On A Regular Basis:

Over the years Microsoft offers a new operating system.  Some of them included Windows Operating System for personal computers, Windows Operating System for Server computers, Internet Browser, Search Engine, Email Server Operating system, Word Processing applications, etc.).  Over the years Apple offers a new device (iPod, iPhone, iPAD, iPAD Mini, MAC, etc.).  Amazon.com regularly offers new services.  These are examples of how companies have evolved their businesses by offering new products or services on a regular basis.  You should pick a timeframe (every one or two years) and plan to offer a new product or service.  You should sit down now and map out what new products or services you will offer 1-5 years from now and start working towards that goal.

- Offer Improvements/Upgrades To Existing Products Or Services:

Microsoft and Apple make upgrades to their existing products and roll them out as new products.  For example, Microsoft makes upgrades to the Windows operating system for personal computers such as Windows 3, Windows 3.1, Windows NT, Windows 95, Windows 98, Windows Vista, Windows 7, Windows 8, etc.).  Apple  upgrades devices such as the iPhone 3, iPhone 4, iPhone 4S, iPhone 5, iPhone 5S, etc.  You can do that to your existing line of products and services.

- Target New Demographics:

Targeting new demographics means reaching out to new groups of customers.  It could mean a new age group, a male or female population, an ethnic group, a group that speaks a certain language, etc.  Targeting new demographics may mean that you have to communicate in their language  or in a way that would be receptive to that specific group.  You may  have to change the packaging of your products in order to use certain images and colors that appeals to that specific group.  More importantly, you have to target the new generation that will continue to use your product going forward.  You have to continually introduce your product to the new generation going forward.

- Expand To New Locations:

Opening new stores in new areas could expand your customer base and help to offset slow growth in other loations.  When a business has many locations and some of them don't achieve the target profit margin the business as a whole can continue to be successful if losses in some store locations are offset by gains in others.  Having multiple locations also gives the business the opportunity to try new products and services in local makets to gauge the response before making a major investment in a new product that could fail.

- Expand To Overseas Markets:

We live in a global economy where innovations and competition comes from all over the world.  Hence, if you want your business to survive into the future you have to consider expasion into overseas markets.  You don't have to physically establish a business overseas in order to reach customers overseas.  The Internet is one way you can reach customers worldwide without having a physical presence everywhere.  However, you may have to market to people overseas so that they can become aware of your brand.