Only two Reasons Business Fail
As we try to break the code on how to more effectively and efficiently run our businesses, during these difficult Covid 19 times, following this old school saying may help: there are only two reasons businesses fail – not enough income or too much overhead.
Unlike many companies Capture Technologies, Inc’s survival doesn’t rely on customers coming through our front doors. We do have many loyal customers that have utilized our services for many, many years and know, that even during these difficult times, we are just a call away if they need product, supplies or services. Our biggest challenge, on the revenue side, is getting new business which is very important to staying viable year after year. For our entire seventy-three years serving California our main source of new customers has been our salespeople calling on business to secure new customers. This pandemic has made us focus on new and different ways to generate new customers. While maintaining current revenue levels and/or increasing revenues is very important addressing expenses and overhead is critical to make it through difficult times.
The last several years have been very good for most businesses and when business is good oftentimes expenses and overhead can get out of control. In good times it seems justified to make new hires or add services without the appropriate vetting to make sure those decisions are warranted.
When a downturn happens, and they have and will continue to happen, good managers will look at and adjust expenses and overhead accordingly. Start with staffing and make sure every position is justified, fulfilling the intended results, and still required. Can it be eliminated or consolidated? Once your staffing decisions are made start looking at all expenses starting with the biggest and working your way completely through the list. Remote working is here to stay. Consider reducing or consolidating your office space. How about outside services and especially auto pays? Do you need these services and most probably you may not even be aware that you are paying for unused services?
Yes, this will take time and effort, however, it will save you money. A penny saved is a penny earned. Watch your pennies and the dollars will take care of themselves. AND there are only two reasons businesses fail………..
If you found this helpful, please check out our products and services Capture Technologies, inc provides
Ed Wright
Author, entrepreneur, ultimate optimist who believes hard work - works!