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What the Pet Technology Boom Tells Us About the Fourth Industrial Revolution

Posted: 19 Sep 2019 01:00 PM PDT

Currently, we're in the midst of what many are calling the Fourth Industrial Revolution, or Industry 4.0.

The Fourth Industrial Revolution refers to a number of technologies that are blurring the boundaries between the physical and the digital: artificial intelligence, the Internet of Things, 3D printing, big data and cloud computing are some of the most central elements. It's causing massive changes in manufacturing, technology, transportation and plenty of other sectors. Now, it's coming for pets.

The pet industry may be a traditionally low-tech space, but a slew of new companies are working to leverage Industry 4.0 innovations and create a burgeoning space that can only be described as the 'pet tech industry.' The products they're bringing to market may be a peek into the future of many other industries – and they show us how Industry 4.0 will turn almost every aspect of our lives into a quantifiable data stream, allowing us to manage everything from air conditioning to water consumption from one single interface. 

The rise of American pets

Naturally, this new wave of innovation didn't come out of nowhere. 

Pets have been on the rise in America throughout recent decades. Studies show that more than 85 million families have at least one furry friend, with pet ownership growing 12% throughout the past thirty years. And it doesn't seem to be slowing down. The past couple of years have seen a boom, and the industry currently enjoys a 14% CAGR. By 2023, industry sales are expected to reach $281 billion in North America alone. 

The growth is even more dramatic among Millennials. Millennials attach a special significance to their pets, and that's likely due to the differences in mentality and life choices they make compared to older generations. Millennials are getting married much later than previous generations and aren't having children at a young age. As a result, they're adopting pets instead of starting families, which has caused a spike in consumer demand both for pets and pet products and services. So much so that younger generations own more pets than older ones: of pets in the U.S., 62% belong to younger generations while only 32% belong to Baby Boomers. 

Millennials are also naturally more technologically inclined. They better understand how to use digital and software-based solutions, and it feels natural for them to look to software platforms and apps to run their personal lives. Pets are no different, and many are now seeking digital pet services. 

Finally, Millennials spend money on their pets. 84% of Millennial pet owners experience separation anxiety, frequently worrying about their pts when apart, and 92% purchase gifts for their pets on a regular basis. Combined with the fact that Millennials now own most pets, this creates an injection of new revenue in the pet services market that's ready to be claimed by innovative new companies. 

Pet companies become venture capital's pet companies

All these factors have triggered a spur of investment in pet technology. More than half a billion dollars were invested into the pet startup space in 2018 alone, and leading players like dog walking app Wag! have racked up hundreds of millions in funding. The pet technology industry is expected to match and raise that amount in 2019, making it one of the hottest sectors in the global technology industry. 

Most of this data comes from the U.S. and North America, but it's worth noting that Asian and European markets have also seen increases and are expected to follow a similar growth trajectory. This demonstrates that Industry 4.0 is infiltrating the pet industry on a global scale, and it also heightens the stakes for VC-backed companies: the sooner these startups are able to find product market fit and expand, the better chance they have at penetrating and claiming foreign market share. 

The secret future of pets

Money is flooding into the pet technology industry. So what is it funding?

Many of the leading pet tech companies are applying solutions and frameworks to pets that have already worked in other industries. Wag!, the previously-mentioned dog walking app, takes a cue from the sharing economy by establishing a platform that's essentially 'Uber for dog walkers.' There are even pet 'wearables' like FitBark ($125,000 in funding), an activity monitor similar to FitBit, but for your dog. 

Others are using technology to create new-and-improved versions of old products. CleverPet Hub ($1.4 million in funding) is a smartphone-controlled "gaming console" for pets that offers simple games to engage and train pets while their owners are out of the house, while Sure PetCare (acquired by Allflex Group) has created a smart doggy door that only opens when it senses your pet's implanted RFID microchip. Meanwhile, several companies have designed smart food bowls, water dishes and self-cleaning litter boxes that can measure, monitor and control your pet's daily intake (and output) of nutrition.

In addition to these piecemeal products, other pet tech startups are attempting to design a centralized, all-in-one solution for managing a pet's care on a digital platform. BabelBark ($8.4 million in funding) is an early leader here, with a fully four-sided digital platform aiming to offer a comprehensive, data-driven solution to pet care, complete with separate (but integrated) terminals for pet owners, veterinarians, pet businesses, and pet shelters. On one level, the platform helps pet owners keep track of important things like feeding histories, medical records, and medication schedules. But it's also built to connect and share data between different user groups. For example, veterinarians can see feeding history or data from a wearable pet health monitor, while pet-focused businesses can see individual pet and owner preferences to customize their service offerings. 

What the pet technology industry can tell us about the future

The significance of all this is obvious if you're a pet owner, and for entrepreneurs, all signs show that pet tech is a big, juicy market that's still young enough to have a wealth of new opportunities. But watching the evolution of pet technology, especially in this early stage, can tell us a lot about how we can expect the Fourth Industrial Revolution to play out in various areas of our lives – and that provides helpful goalposts for entrepreneurs.

First, smart pet products give us a glimpse into how the Internet of Things will soon come to rule our homes. We already have Twitter-connected fridges, and now even the dog bowl has an internet connection. This means virtually anything that hasn't been converted to 'smart' technology could present an opportunity: a smart water bottle that tracks daily water consumption, a smart coffee table with built-in digital board games, a smart kitchen thermometer that texts you once the chicken reaches 165ºF. If you can get the economics right, there's probably a market for making just about anything in a home 'smart.'

As these smart devices come online, the sources and volume of data we produce and interact with in our lives will skyrocket. The future is quantified: all those smart water bottles and wifi-connected dog bowls will produce new streams of data that we can measure, monitor and manipulate. As this explosion of 'everyday data' progresses, we may even expect to see predictive AIs or algorithms, trained on big data, that can alert us when our daily water consumption drops below the acceptable level or when our dog's feeding patterns indicate she may need to see the vet. 

And just like in the pet tech industry, we'll see many companies emerging with piecemeal products for Industry 4.0 – but perhaps the biggest opportunity arises from bringing all of this together. BabelBark wants to create one central hub that collects, analyzes, and organizes the many aspects (and smart devices) of caring for a pet. We'll likely see the same thing in other sectors: for example, a digital home management platform that allows you to monitor and control your air conditioning, electricity, water consumption, security system, smart fridge, smart water bottle, and any other smart appliances in your home. 

The Fourth Industrial Revolution is generating an explosion of innovation in the pet industry, and pet tech startups are designing new solutions to bring pet care into the 21st century. But this is just one small element of a much larger, broader change in how we live. 

Industry 4.0 and the new developments that are driving it will transform our homes, our cars, our possessions, and how we interact with all of it. Entrepreneurs who get in the game now have access to enormous opportunities – and if you're looking for a map of the future to base your plans off of, the booming pet tech industry provides a good one. 

5 Tips & Tricks That Boost Small Business Security

Posted: 19 Sep 2019 08:00 AM PDT

Small businesses often fall into the trap of lax security, both online and in person. However, it's essential for small business owners to consider how they can navigate the world of digital security risks and dangers. 

Many small business owners think they're safe from hackers. After all, why would a hacker take the time to go after a small business, when they could go after a company with millions of dollars? In reality, however, the ordinarily-lax data security policies of small businesses make them low-hanging fruit for skilled hackers.

Even if you follow basic practices – such as making sure that everyone changes their passwords regularly, keeping your software updated and priming workers on how phishing attacks work – there are a few other things that you can do to protect your business.

What's at stake for small business owners?

On average, cyberattacks cost small businesses over $50,000 per event, according to a study published by Continuum technology consulting. The losses for large organizations are much more.

In the Continuum survey, business owners that employ 10 to 49 employees revealed that network breaches cost them, on average, more than $40,000 for each incident. Companies with 50 to 249 employees reported losses close to $50,000 per occurrence, and business owners who employed 250 to 1,000 people reported average losses close to $65,000 for each incident.

Following are five tips and tricks that you can use to boost your small business's cybersecurity.

1. Take advantage of cloud security.

By keeping your data on a local server, you can ensure redundancy and maintain full control over your information. Also, you'll have complete control over the security features of your network. However, cybersecurity is a full-time job.

By leveraging cloud services, you can take advantage of built-in security protections. Moreover, cloud service providers are specifically in the business of securing and protecting client data. A reputable company will keep your data safe by ensuring redundancy and complying with the latest cybersecurity best practices.

2. Identify core employees and nurture their growth.

Business owners typically take on more than their share of responsibility. For several reasons, however, it's essential to focus on growing your organization and delegate other tasks to employees.

By delegating responsibilities, you provide employees with opportunities to advance their career. Also, you'll increase employee satisfaction and loyalty. That sentiment compels them to remain mindful of helping to protect the data of the company they've worked so hard to help grow.

3. Don't take paper for granted.

Don't make the mistake of thinking that hackers can't use hardcopy documents to compromise your information. Malicious actors don't need computers to steal your proprietary data. They'll use any method available to access your sensitive information so that they can sell it or use it to create a false identity.

Paper documents that contain sensitive company information are one of the easiest attack vectors for hackers to exploit. There is no data security, just your company information printed on a piece of paper.

Hardcopy security is vital in your offices, as well as at your exterior disposal sites. Accordingly, you should establish policies for making sure employees dispose of sensitive printed information properly.

4. Hire a hacker.

According to the Center for Strategic & International Studies (CSIS), 117 cyber-related incidents targeted U.S. businesses and other entities in 2018 – representing more incidents than any other country in the world. If it's in the budget, hire an ethical hacker to protect your company data.

Ethical hackers use the same techniques as malicious actors to protect your company information. They also use special network penetration tools to discover and repair network vulnerabilities. Many business owners employ these professionals to improve their companies' cybersecurity.

5. Know what BYOD means for your business.

BYOD stands for "bring your own device." Today, the practice is prevalent among companies of all sizes.

BYOD practices allow employees to enjoy the convenience of using familiar devices to help with their work, and employers save money on buying expensive technology. However, those savings come with added risks.

Unsecured BYOD devices are easy targets for hackers to compromise. Once they've accessed an employee's personal device, malicious actors may use that device to access a company network. Accordingly, business owners should establish policies regarding BYOD security.

Watch out for frequently-overlooked vulnerabilities.

If you think about it, simple office equipment such as your copier, printer and fax machines are also computers. Just as you would protect a computer terminal or mobile device, you must protect your office equipment.

Malicious actors look for any vulnerability. Accordingly, you must secure all your electronic office equipment. Make sure that you've enabled encryption and data overwriting on these essential devices. You should use any security features available for this kind of equipment.

Use password protection and change the password frequently. If you dispose of office equipment, make sure to erase any memory on the devices.

Also, don't assume that your merchant account vendor appropriately manages all your security for your point-of-sale system (POS). Make sure to use strong passwords for your POS accounts.

Additionally, set up a separate administrative account for yourself and user accounts for your staff members. Just like any other computer, use antivirus software and make sure to update the software for your POS terminal regularly.

Getting help.

Many small businesses can't afford to hire a full-time white-hat hacker, and that's fine. Instead, you can hire a cybersecurity consultant as needed.

A managed IT services provider (MSP) can help you protect your business from malicious cyber activity. An MSP can provide several proactive security services, such as:

  • 24-7 monitoring
  • Data backup
  • Data encryption
  • Employee cybersecurity training
  • Firewall protection
  • Network protection
  • Real-time threat identification
  • Threat elimination

As a bonus, in addition to finding and repairing weak spots in your company's IT infrastructure, an MSP will also help you optimize your network resources.

By partnering with a managed IT services provider, you can ensure optimal network performance and business continuity. Furthermore, your MSP can reduce network downtime, protect the data that is critical for ongoing, sustainable operation and help you plan and implement an information disaster recovery strategy.

As a small business owner, you may not need or have the budget for a full-time IT professional. An MSP may serve as a solution to providing the right level of service for your small business, allowing you to take advantage of all the benefits and knowledge of a full-time IT department, without paying a full-time salary. Your agreement with the MSP should equate to a dedicated IT team.

Small business cybersecurity matters

Data security is one of the most challenging responsibilities for small business owners. Many entrepreneurs seek the help of experienced professionals to help with cybersecurity. However, it's not a top priority for far too many small businesses in America.

New cybersecurity threats emerge every day. However, a little bit of learning can go a long way toward helping small business owners keep their enterprises safe from online criminal activity. By understanding the threats of the digital domain, businesses are better prepared to manage cybersecurity issues.

7 Ways You Are Stunting Your Business's Growth

Posted: 19 Sep 2019 06:00 AM PDT

You are working countless hours, sacrificing your time, being tenacious when things are not going your way and feeling exhausted most of the time. Unfortunately, being a small business owner can sometimes feel like a thankless job.

On the surface, when things feel like they are at a standstill, no matter how hard you try to grow, you might automatically think that what you need is just a little more time or just a bit more money and then things will finally turn for you. Knee-jerk reactions to this way of thinking may make you seek a loan to increase your cash flow or extend your operational hours to increase your capacity, but in reality, those might not be the things you need at all.

An honest self-assessment is crucial in understanding how our actions are impacting our success and what's need to end that cycle. The answer could be that some of your direct behaviors are contributing to your current lack of growth. Here are seven behaviors might be preventing you from growing your business.

Showing a lack of commitment


Are you committed to seeing your business grow and scale to the next level, or are you merely going through the motions? For your business to grow, you need to commit to making changes that lead to long term growth. Challenging the status quo and being committed is the first step in adopting the right mindset.

Behavior Change Science states that in order to secure success, it is essential for an individual to gain commitment and stay focused on that goal every day and every minute. All the actions that you do each day will lead you closer to the big goal. Remember, you are in control of your destiny. After all, it is your business, and your team relies on you as the leader to produce positive results.

Not setting clear financial goals


If you do not set goals, you are directionless and blown by the wind. Being directionless will see you changing your product or service offering and marketing to whomever you get the chance. Being directionless spreads you thin and wastes the resources you are trying to conserve for growth.

What you need to do is set modest, realistic and attainable goals for yourself. Start by establishing an annual one-year growth goal, think of a big goal. Your yearly goal should then be broken down into quarterly goals down to monthly to-dos and into weekly to-do items. Setting goals gives you clarity on where you are going, what are the actions that you need to take to get there and what you are trying to achieve. Then, prioritize your daily activities to get you closer to those set goals.

Not tracking your behavior and actions


If you do not know where you are, you can't see where you're going. Keeping track of your activities keeps you accountable for your actions. Accountability is crucial for you to build a profitable and sustainable business. To do this effectively, an accountability partner is preferable. If you don't have someone keeping you accountable, you will more than often cheat yourself into failure.

Rigorously tracking your behavior and action items will enable you to start making data-driven decisions, based on hard historical facts of what has proven to be successful for you in the past. We know, it might be easier to read about it than actually doing it. Start today by auditing your calendar and credit card statement, reflect on each minute of your time and every dollar out of your pocket. Are you using your resources wisely?

Having low self-efficacy

Self-efficacy is crucial to growing your business. Self-efficacy is one's belief in their ability to succeed in specific situations or accomplish a task. If you do not build self-efficacy, it will lead to chronic indecision, inability to prevent and overcome hurdles and ultimately perpetuate bad habits that are stunting your growth potential.

Resisting the need for coaching


Admitting you do not know everything and you need help is sometimes the most challenging thing to do. Your ego may get in the way since you are used to doing things your way in the past. Also, knowing the fact that it is your business might lead you to think that no one can give you valuable advice.

Your experience and education will make you believe that nobody can offer anything of benefit to you, which is not the case. It would be incredibly helpful if you were guided in strategy by an expert who has been through similar experiences and can offer valuable advice and insights as well as an outside perspective into your business health. Do not be afraid of asking for professional input. 

Isolating yourself


Isolating yourself is probably one of the worst things you can do. We are often our own worst critic. Most of us have a tendency of being incredibly hard on ourselves if we make the wrong decision and something goes wrong, or worse, we fail. Don't measure yourself against unrealistic standards, living under the constant weight of self-imposed pressure.

Having self-confidence in our abilities is incredibly important and helps us move things along. Seek support in others who have been through similar challenges. You will find comfort in knowing that you are not the only one who has struggled. You do not have to be alone, and you shouldn't be. We are meant to have people near us to talk about the good and the bad. Behavior Change Science outlines that you have to activate support in order to get the results you're looking for. Evaluate the support you have around.

Not instilling good habits


The first thing that is important to understand is that most of the time, it is your old habits that are preventing you from growing your business. You must be open to change, change for the better. Be purposed on every dollar or minute you invest and track your actions hourly, daily and weekly to get the results you want. You are the leader of your business and so, adopting the right mindset, a positive mindset, and instilling good habits both in yourself and your team, is at the basis of your success.

How Finding Your Purpose Can Help You Recession-Proof Your Company

Posted: 19 Sep 2019 05:00 AM PDT

The current market outlook makes now the perfect time to think about the future and identify new opportunities for long-term growth. Many analysts are pointing to signs of an impending recession. According to a survey of economists, 34% predict a recession will hit the U.S. in 2021. 

Many small companies won't prepare for a downturn. Instead, they will continue to do what they've always done. They forget that the market is cyclical, and they assume that demand for their products and services will always be there.

However, those companies that seek out and act on opportunities when times are good will find it much easier to weather economic storms.

Now is a good time to search out those opportunities. 

Nothing stays good forever 

Industry profitability life cycles are much shorter today than they were in the past. It used to be that firms could focus on one industry and never branch out.

Industries today are built out so fast that you could be pursuing something that's on the backend of its life cycle and not realize it until it's too late. This is especially true if your business, perhaps an architectural firm, for example, serves a specific geographic area. The Kansas City area has experienced a huge spike in apartment construction over the past five years. The market recently reached a turning point, however, and now there are more apartment complexes than there are buyers. The city is overbuilt. 

Let purpose serve as your guide 

There may be hundreds of industries that you could potentially tap into. How do you know which ones are the best fit for your business? Is there one particular industry or customer demographic that you get excited about?

A rule of thumb is to pursue those avenue or sectors that you're passionate about. For example, one architecture firm that served organizations in six different sectors found it was loved building learning environments. That realization allowed the firm to transition from retail projects, entertainment venues and churches in favor of projects that gave the team a greater sense of purpose and fulfillment. 

Let purpose be your guide when times are good. It will help you create a long-term vision that can sustain you when the competitive landscape becomes even more competitive. 

How to plan for lean times 

To avoid chasing projects in a sector that lacks fulfilling work or profit potential — or one that will soon be oversaturated — always keep one eye focused on the future.

Here are three strategies for doing just that. 

1. Research opportunities by sector and come up with a ranking system.

Write down all the industries that your firm or small business could be a fit for. Once you have that list, work with your team to rank how passionate you are — on a scale of one to 10 — about each sector.

You also want to rank the level of need for your services within that sector. You can include as many variables as you'd like: how much in-house expertise and experience you have in that space, how much impact projects will have on people, what growth potential you see in the industry, etc. Do this for each industry and then total up the numbers. 

It sounds like a simple exercise, but it requires far more analysis than what most firms conduct when pursuing new opportunities. Based on the data I've tracked, less than 20% of companies I've worked with analyze economic data when it comes to targeting opportunities.

Targeting opportunities is a data-driven decision, though, so you should seek out help if you need it. Most business leaders aren't economists. I've been analyzing industries for two decades, and I still rely on the help of an economist. 

Once you understand what industries you should target, focus on potential clients and opportunities that align with your organization's purpose and vision. 

2. Know what needs your company fulfills.

Imagine your company just got really clear on its purpose. ACI Boland, an architecture firm based in Kansas City, Missouri, exists to enhance people's lives through design. The firm, which is a client of Pioneer IQ, fulfills its purpose by building housing, schools, hospitals and commercial office buildings; it also serves owners who need help navigating all the decisions that come with creating such spaces.

When your company is fully committed to achieving a very specific vision and knows what it can do, it's easy to distinguish between work that's worth taking on and work that isn't. Don't waste time and resources trying to fulfill needs that you aren't committed to fulfilling. 

To gain clarity in your business, set an annual goal. Determine what percentage of that goal can be accomplished with your existing customers and prospects. If there's a gap, determine whether it can be filled by taking on projects in industries and geographic markets that you already serve. If not, it's time to think about entering new industries and new markets.

3. Be open to change.

Adapting and evolving are essential to achieving your vision. For example, a minority-owned engineering firm based in Sugarland, Texas, was growing rapidly and decided that it no longer made sense to participate in the state's disadvantaged business enterprise program. However, the firm wasn't sure where to channel its newfound resources. 

After internal interviews with employees, the firm made a bold decision to shift away from working for the Texas Department of Transportation – building highways, roads and bridges throughout Texas and Oklahoma – to surveying communities to prepare them for meaningful growth. This work was more aligned with its employees' collective passion for enriching communities. 

There's always an economic risk that comes with aligning your business around a new and greater purpose. In the case of this particular engineering firm, it went from serving one client (with many heads) to serving many, many clients while meeting the same revenue goals. When expanding into new industries or shifting your company's focus, it requires a long-term strategy. Leadership has to be prepared to weather the storm, lean on reserves and make tough calls. 

Planning for the future isn't rocket science. Steve Jobs once said, "The only way to do great work is to love what you do." Take the time to think about where you want to have the greatest impact. Start aligning your work around that vision now, and you'll be in great shape to move forward the next time the economy goes south.
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