Business in 3-D
February 5th, 2010
Maximize Revenue…Minimize Costs…Plan for the Future
All too often business owners abide by the old philosophy that increasing revenue will fix problems. That is a very outdated and one dimensional look at a business in a world that has become much more complex and…three dimensional. Focussing solely on sales to stop the bleeding is only part of the solution. It costs much more to go out and get a new client than it does to look at what you are spending in order to service that client. By overlooking inefficiencies in spending you will dig an even deeper hole with each new client. Making expense analysis part of your regular routine, you will ensure better security when the sales are just not there. Performing an expense analysis is a waste of time unless you really know what you are looking for.
Contingency based cost management consulting is not a new thing, however the value of expert knowledge being used to your advantage is much more appreciated now. We have witnessed the worst economic crisis since The Great Depression. The result is an amazing change in strategy. One of those strategies has been seeking the help of industry experts to assist in the decision making process. Business Advantage Group’s client base has grown significantly since the down turn. That growth is attributed to our clients’ need for cost savings…yes…but also increased efficiency. If we are using our years of knowledge in different areas of business, their employees can be focusing on driving sales and improving different areas of the business.
Increasing revenues and cutting costs will certainly bring success for today, but what is your guarantee for tomorrow. Investing in your businesses financial security will solidify your success in the future.
What would happen to your business if you were no longer running it? Do you have someone to take your place? How will you create an equitable situation with one child in the business and the other one not? If something happened to your partner would a spouse now own that part of the company? How and when would you transfer the business and would there be value enough that you could retire comfortably? What can you do to keep key employees? According to Dan Katzeff, Financial Services Professional at Lee-Nolan Associates, “The day you open the doors of your business is the day you should start exit planning.” Planning is the way to keep the promises you have made.
Have the foresight to use a portion of your increased revenue and cost savings to put plans into place to protect your business, prepare for succession and save for retirement. 3-D thinking will help your business thrive during economic highs, survive during economic lows, and drive through whatever may happen next.
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