Don't Let Your First Idea Be Your Only Idea

From the book Simple Secrets for Becoming Healthy, Wealthy & Wise, by David Niven:

'We begin our careers as almost empty notebooks, and as we progress, our mind fills with notations and observations. Take heed of experience, but realize there are situations where your first lessons no longer apply.

Schwinn Bicycle was the leader in the industry for one hundred years.

Edward Schwinn, the fourth generation of Schwinns in the business, took control of the bicycle company in 1979. Thirteen years later, the company was on life support, its market share down by 60 percent.

Analysts point to a refusal to live in the present as a reason for the decline of the company. Edward refused outside financing when the company began to show signs of weakness. Because Schwinn was THE name in bicycles, Edward had refused to spend money on keeping the brand in consumers' consciousness. Because it was always the kind of company that operated on a handshake, Edward agreed to outsource all Schwinn's manufacturing to the same supplier without adequately protecting the company's long-term interests.

By 1992, Schwinn Bicycle was going under. Product recognition among children had dropped to close to zero. And the supplier ended their deal with Schwinn and begain producing their own bicycles in plants paid for with Schwinn money.

The company declared bankruptcy the same year, and the Schwinn family lost all control over the family's business. Edward Schwinn's explanation for the fall: "We are where we are." To which on family member responded, "Where we are is out of business, because you were asleep at the wheel."'

Winners adapt to changing situations.