Here are a few basic truths to help ensure your success: It all starts with simple math. The formula is pretty straightforward: Revenue – Expenses = Profit. You need to sell enough of something and price it properly so that it exceeds your costs of doing business. Knowingly taking work at a loss is a […]
Imagine if someone was rushed to the Emergency Room of a hospital with severe symptoms of something wrong and then decided to tell the doctor that that it was no big deal and then selectively shared information about their true physical state. You would think this person was being irresponsible with their health. This happens all the time in business. Leaders let their pride and ego get in the way and it prevents them form being forthright and honest at the very time they need to be. I’ve seen many a business go down the tubes that didn’t have to because the leader was slow to act, slow to ask for help and unwilling to face reality. Avoidance rarely works in business or life.
Business is hard enough with encumbering it with seasonality issues. I’ve seen many talented and hard working small business owners struggle under the weight of non-seasonal business volume. It’s hard to staff properly, keep good people and manage your cash properly. If you’re not careful it can begin to feel like a “feast or famine” situation which over the years can start to wear you down. Of course there are many people who manage to navigate the “ups and downs” properly, but they are usually pretty disciplined about their business leadership actions. If you are in a seasonal business environment, I encourage you to consider the following:
Every company should be run profitably. A portion of this profit should then be saved for future emergencies or needs. This should become the standard approach to managing your organization’s finances.
…if you prune a tree too much it will die. It also requires proper fertilization and conditions conducive to growth. The same thing outcome invariably happens to companies.