Dennis Stearns: How to Future-Proof Your Business in a Rapidly Changing World

Dennis Stearns is the founder of Stearns Financial Group and a nationally recognized expert in ultra-high net worth financial planning. He’s been featured in the Wall Street Journal, NY Times, Kiplinger Finance, and more. With accolades such as Entrepreneur of the Year and Most Admired CEO, Dennis is known for his ability to forecast Super Trends and their impact on business and investments. He has led think tanks on financial scenarios and regularly delivers workshops for financial advisors on best practices.

We spoke about the techno-industrial revolution and how it's reshaping business landscapes. Dennis explained the convergence of globalization, technology accelerators, and demographics, highlighting that it’s moving at "ten times faster and 300 times more powerful than the first industrial revolution." This collision, he said, is creating massive changes, not only in business but in personal lives and politics. For entrepreneurs, the question becomes: "How can I surf those trends, and how can I make sure I don’t get crushed by them?"

One of the standout stories he shared was how Empire Level, a company struggling with declining sales, reinvented its core product by introducing an innovative design that captured the market’s attention. They took an old construction tool and transformed it into a sleek, aircraft-blue product that made it onto the set of Iron Man 3. "That reengineering of a core product," Dennis said, "put them in a growing sales mode… and resulted in an exit at many multiples of what they originally thought possible." It’s a lesson in how product reinvention, combined with savvy marketing, can turn a business around.

Dennis also delved into the importance of staying close to the customer. "As your business grows, you may be getting more distant from your customer." He illustrated this with the Epps Logistics story, where persistence in building a relationship with Starbucks ultimately led to a lucrative deal. After an initial meeting went awry, the team stayed in the Starbucks lobby, working and talking to the staff until they got another opportunity. This persistence paid off when their contact moved to another major company and brought them along. "Sometimes it’s those little things that make the difference," Dennis remarked, stressing how crucial relationships are in business.

Here are a few takeaways from our conversation:

1. Super Trends Are Reshaping Everything: The rapid collision of technology, demographics, and globalization is forcing businesses to evolve faster than ever. Businesses that can’t adapt will struggle to survive.
2. Strengthen Your Business Moat: Dennis uses the metaphor of a “moat around a castle” to emphasize the need for businesses to protect their core strengths before expanding. "Before you go off on a knight’s quest to grow the business," he advises, "make sure you’ve got a healthy moat."
3. Get Close to Your Customers: Strong relationships with customers are a competitive edge. "Even as your business grows, staying close to your customers is key to maintaining success."
4. Luck Favors the Prepared: Dennis points out that while skill plays a role, sometimes you can "make your own weather patterns if you play the game smart." His work with a company on increasing its valuation from $2 million to $4 million is a prime example of this strategy in action.

This episode offers valuable insights into how entrepreneurs can not only survive but thrive in an era of disruption by staying agile, strengthening their core, and building meaningful customer relationships.