How do you answer this question, which contains pitfalls and opportunities? Many companies are locked into a self-perception of what they do, and this can be detrimental to a company's future.

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Did you, like me, think McDonald's made burgers? Many will surely answer yes to this question. But the reality is that McDonald's business success is largely due to the fact that after revolutionizing the way burgers are made, the company established a franchise model where the chain typically owns the real estate in which the family restaurants are located.

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The properties are leased to local franchisees who take the direct business risk on whether people in the area want to eat burgers etc. The rent has to be paid whether they do or not, and in this way McDonald's, by seeing itself as part of the real estate industry, has eliminated some of the risk of running a burger chain.

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Another example of a company that "does something different" than you might think is Tesla, not to be confused with a "simple" car manufacturer. The company's strength lies not in the cars it produces, but in the overall driving experience, including Superchargers, directions and the total experience you get when you drive Tesla.

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The car, technically advanced as it may be, is hardly better than many other cars, but the overall "travel experience" is the best available. Of course, in addition to the cars, the brand also supplies solar cells and batteries to consumers, creating an eco-friendly energy infrastructure - Tesla's real business.

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ALSO READ: Size doesn't always matter

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And why is the question of what you do so important? Well, both McDonald's and Tesla are examples of companies that have managed to develop a business that goes beyond the immediate conscious need they originally met and can evolve and disappear over time.

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Both have had visionary leaders or advisors who have dared to question the companies' industry view and reason for existence - and who have had the courage to expand their original business into new industry areas that complement their original business. Areas that can also prove to be the real business and the business that keeps these companies alive in the long term.

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ALSO READ: Are you creating your future or is the future creating you?

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The question is whether you dare to follow in the footsteps of McDonald's and Tesla and challenge yourself and your business by looking at your livelihood and asking the questions: What will we be doing in xx years and why should customers choose us? And are there any synergies we can gain by moving in one direction or the other? Of course, the industry movement must happen without losing the core of your business and without being unfaithful to your values.

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Those who dare have the opportunity to win big and secure their own and their company's relevance in the future, while those who do nothing will see their company lose relevance and die over time.

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The last question is: What do you dare?

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This column is published in FINANS on June 28, 2024.

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A powerful tool that ensures your strategy doesn't just end up in a ring binder on the shelf.

Henrik Engel

Professional board member