the urban prospector

Searching for Golden Opportunities in America's Cities


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Plan for Replacement

One of the several small shops next to available space in the Grand Rapids Downtown Market. The ability to rent kitchen space as well as retail space as small as 100 square feet is allowing new companies to be created.

One of the several small shops next to available space in the Grand Rapids Downtown Market. The ability to rent kitchen space as well as retail space as small as 100 square feet is allowing new companies to be created.

Everything comes to an end. The dinosaurs of the Jurassic, the Pony Express, Google, and even the chair I’m sitting on either have or will come to an end; if I do not have a replacement for my chair when its time is up, I will be left sitting uncomfortably on the floor. Organizations will falter. Businesses, no matter how well run, will at some point in time fail. Bands will break up. Even the most powerful and respected organizations will at some time cease to exist. Atrophy is universal. In the long run, preservation will not work: the only long term strategy is replacement.

While replacement has different requirements depending on what needs to be replaced, it is almost always an incremental process. Multi-national corporations do not appear overnight. Bands, even the most corporately devised, have small beginnings. Effective community organizations take years to grow into an established force. Rather than focusing on creating large existing organizations, there needs to be a focus on creating the right conditions for small organizations to emerge and organize. The best way to do this is to remove barriers to entry.  Barriers to entry, is defined by Investopedia as “The existence of high start-up costs or other obstacles that prevent new competitors from easily entering an industry or area of business.” Barriers to entry can be removed or lessened in many different ways. Continue reading