Starting a Business Now vs. 1975 is Way Different … and Somewhat the Same
My recent blog on refirement vs. retirement received more attention than any blog I have ever written.
That was quite surprising, because my 500+ blogs over the years have covered important topics in supply chain and leadership. But people obviously are interested in refirement. They asked how I discovered enjoyment from work, and did I really think I was retired in 2020.
Many wanted to know about the differences between 1975 and now, along with what lessons still apply in 2024. What are the differences in starting a business? What are the differences in life, retirement and pace? What is your view of supply chain, then and now?
So, I thought it might be worthwhile to discuss some of these topics – not necessarily in the right order.
In Some Ways, the Song Remains the Same
I’ve started more than 15 companies, but I have spent 95% of my time at two. The genesis of Tompkins International was my kitchen table in 1975. Decades later, in 2020, Zoom and cell phones helped birth Tompkins Ventures.
A few business truths remain the same, no matter when and where you begin:
- You must have a clear vision of where you are headed.
- You must have a clear value proposition for your clients.
- Your team must understand your competition and have a clear path to winning.
- You must have an offer that is in high demand.
But the biggest lesson I carried over from 1975 to 2020? You must hire the right people. Organizations need a strong staff of people aligned with your vision.
Back then, my team’s average experience was one year. In 2020, the average was 15 years; by 2024, it’s 30 years. This experience has yielded numerous benefits.
The Then and Now – What Has Changed with Starting a Business
Other differences are just as staggering. In 1975, life was less complex, less hectic. My first clients were local.
But 1970s economic instability, limited technology and restricted access to capital posed significant hurdles. Securing financing was tough. Venture capital was not prevalent, and banks were leery of new businesses.
And the business tools available – typewriters, landlines and snail mail – slowed the pace of everything. Technology didn’t drive operations. You dealt with physical paperwork, face-to-face meetings and local talent. Fax machines, mobile phones and the internet were years away.
2020 and beyond have brought unprecedented global challenges, including the COVID-19 pandemic. In some ways, starting a business was tougher. But if you adapted to disruptions and leveraged technology, you could build a business. And that business could be agile enough to move along the waves of perpetual disruptions.
Financing remains difficult. But venture capital and private equity at least give you options beyond the local bank. Plus, supply chain financing can help you maintain cash flow without giving up equity.
A major difference? Businesses now move at lightning speed. Cloud computing, AI and remote work have fundamentally changed how companies operate. Geographic boundaries no longer restrict hiring, and a physical office is optional.
For Tompkins Ventures, building a team with remote, experienced professionals has saved time and resources. We don’t have to rent office space, buy real estate or deal with utility bills.
Plus, onboarding is quick because our people have a wealth of experience.
Geography no longer restricts your clientele, either. In 2020, Tompkins Ventures quickly secured clients a world away – without the grind of expensive plane rides, travel time, taxis and hotels. We became international almost overnight.
Refirement and Learning the Value of a ‘Good’ Mistake
No matter your level of experience, you’re going to make mistakes. But the decades change your perspective.
Back then, when I was green, I thought my mistakes were monumental. I often felt frustrated.
Now, I accept that mistakes are inevitable. In many ways, that’s how I learn. Today, in “refirement” mode, I view each mistake as more of a stepping stone than a pitfall. Mistakes excite me because they signal growth.
This shift in outlook allows me to adapt more quickly. I’ve learned to adjust strategies in real time, without dwelling on failures.
How Technology and Connections Reshape My Refirement
Another drastic shift? How I spend my time and how I communicate.
Back in 1975, I devoted about eight hours a day to conference calls, conversations and meetings. Eventually, I had to travel worldwide for consulting gigs, often spending four days a week on the road.
Now, I might spend eight hours a day on Zoom. But during busy peaks, which happen too often, I’ll spend 14 hours a day glued to the computer on Zoom, with the occasional cell phone interruption.
My writing and public speaking has also changed dramatically. In 1975, I was working on my first book and producing one article per month.
Fast forward to 2024, and I have authored, co-authored or edited 31 books. I write 10 or more blogs and articles a month. While some of those do go into magazines, many fill a medium that didn’t exist back then – websites and social media.
My public speaking engagements have also seen a significant shift. In the mid-1970s, I averaged just one speech per month. However, the 1980s saw a surge in demand, and I found myself delivering 10 speeches or seminars monthly. By 2020, this had settled to about five speeches per month.
The landscape changed again in 2024, with a pivot toward digital platforms. Now, I conduct 15 online presentations monthly, including podcasts, webinars and interviews, while maintaining a quarterly in-person speaking engagement.
This shift reflects new technology, new communication preferences and how we exchange information in our increasingly connected world.
Supply Chain: From Not Existing to Strategically Essential
In 1975, the term “supply chain” wasn’t even part of the business vocabulary. Back then, warehousing and transportation emphasized cost reduction. The goal was simple: optimize operations to save money.
Getting accurate data was critical but difficult. We made decisions based on the best available, but we knew that such data were often incomplete or delayed. Thus, the mindset in 1975 was very much about keeping things steady. Don’t rock the boat.
Businesses, including mine, were focused on our own success. Instead of continual innovation, we concentrated on optimizing what we already had in place.
Fast forward to 2020, and pandemic chaos forced the concept of “supply chain” into the boardroom. However, most executives still didn’t fully grasp how essential supply chains are to profitable growth. But they had shifted their focus from optimization to contingency planning.
Frankly, many businesses were just scrambling for survival. The VUCA (volatility, uncertainty, complexity and ambiguity) of the previous years had reached exponential heights.
And that continues now, four years later. In this decidedly non-steady state, more executive teams finally understand that supply chains aren’t just a cost center or a necessary function. Instead, they hold the key to resilience, value and long-term profitable growth.
The businesses that thrive in 2024 have embraced innovation. Today’s leaders understand that disruption is the new normal. The idea of “rocking the boat” is not something to avoid – innovation is essential.
Instead of focusing solely on tactics or short-term solutions, the winning businesses now prioritize optionality, allowing them to pivot and adapt to whatever disruptions come next.
Retirement Today is a Whole Different Ball Game
Now, back to that refirement vs. retirement thing.
In 1975, I and most others expected to retire at 65. Many expected to work for the same company for decades. Their pensions and Social Security funded their retirement, which people viewed as a time of leisure, with modest living.
Now, life expectancy has climbed to 79. Healthcare costs have grown beyond the provisions of Medicare. People expect to retire later or, like me, keep working. Many choose a second career. I chose to found a new company. Getting fired up about the future of Tompkins Ventures has me in refirement mode, not retirement.
Many are in the same boat. In fact, only 11% of Americans don’t plan to work at all after they retire, according to CNBC. They worry about rising healthcare costs, the sustainability of Social Security and the fact that they must fund most of their retirement via personal savings, investments or 401Ks.
Looking Forward to Continual Refirement
Luckily, I have the blessing of diving into refirement by choice, not necessity. The chaotic environment of 2024 suits me just find. It’s an era where operations demand resilience and adaptability – a far cry from the optimization-driven mindset of the past.
As I reflect on the journey from 1975 to 2020 and beyond, it’s clear that continuous learning has been the key to my success. Refirement, for me, isn’t just about staying busy; it’s about reigniting my passion, learning from both old and new mistakes, and embracing the exciting challenges that come with each new chapter.
Related Reading
- Refirement Beats Retirement Any Day
- For Hypergrowth, Cash Flow Often Beats Raising Capital
- Make Your Company Greater – Hire Older Workers
Jim Tompkins, Chairman of Tompkins Ventures, is an international authority on designing and implementing end-to-end supply chains. Over five decades, he has designed countless industrial facilities and supply chain solutions, enhancing the growth of numerous companies. He previously built Tompkins International from a backyard startup into an international consulting and implementation firm. Jim earned his B.S., M.S. and Ph.D. in Industrial Engineering from Purdue University.
Excellent as usual—-you forgot the Telex–LOL