Toys R Us was a major player in the toy industry for decades. But recently, there have been whispers that the retailer will close all of its stores in the U.S. within the next several weeks.
What happened? Over the last several decades, the world changed drastically, but unfortunately, Toys R Us failed to keep up.
In the early days of the internet, Toys R Us signed an agreement that gave Amazon complete control over the company’s e-commerce business.
Amazon was responsible for building and maintaining the online store as well as shipping out the orders. The partnership was a huge success.
Toys R Us saved itself the trouble of having to learn how to build an e-commerce business, and Amazon profited off selling toys.
But then, Amazon ended the partnership, leaving Toys R Us alone to figure out how to build its online presence for the first time in the company’s history.
This was the beginning of the toy company’s downfall, and it could happen to your law firm as well if you’re not careful.
What Is The Lesson Here?
The lesson in this story is always think about the future.
Toys R Us never thought about what would happen if Amazon ended their partnership, and as a result, they were left behind without a clue as to how to build an e-commerce store on their own.
Think long and hard about where your business is coming from. Is this source going to be around in a year? How about five years?
Lawyers that relied heavily on YellowPages in the past learned the same lesson that Toys R Us did.
No one uses YellowPages to find a lawyer anymore, so law firms that relied on YellowPages to find new customers had to quickly adapt before their business failed.
This shows why it is so important to generate business from multiple sources.
Innovation Equals More Clients
Google, Facebook, and other referral sources are unpredictable. For example, a minor change to Google’s algorithm could make it impossible for you to generate new leads.
Because of this, lawyers must focus on generating leads from multiple sources so if one source is no longer effective, their law firm will not be affected.
Your law firm may be successful now, but that doesn’t mean it will be in the future.
To stay competitive, lawyers must continue to innovate, so they don’t end up like Toys R Us.
Focus on preparing for the future even if business is running smoothly in the present.