“Never in my lifetime did I expect this would be so severe!”
“The value of my business evaporated 30+% before my eyes. I couldn't stop it! I don’t have time to figure out what went wrong. My banker can’t or won’t help. Cash is short. I am tired and it is no fun anymore. I have no clue when this will end".
Sound like you and your business?
All types of distributors are expressing the same type of bewilderment at the loss of business value that they have witnessed during 2008-2009. Tough choices were made to survive and some have hunkered down. Others relish the challenge to rebuild. Which are you?
But, first things first! Generating cash and profits should be at the very top of your list as you move forward. Here are some rules you need to live by:
- When you sell product, whatever it is, you need to cover all your cost and make a profit! That may mean that you change the settings in your ERP system to establish a floor on gross profitability that you must have. Don't let your people hit the panic button and discount the whole order!
- Look at your operations in a profoundly different way. Why? The old way isn't working. You gotta change your back office if you want to rebuild your business. Can you do it?
On this lighter side, there is a time when you may recall the Miller Lite Beer ad: Less Filling….No, Taste Great Taste……What a mental argument and it is not about the beer right now! It is about how do you gain operational productivity (to grow GP dollars) and grow your business at the same time? What to know how?
Growth Wizards will offer up both sides of that argument….because you don’t want to grow your business without profitable productivity! Selling product for the sake of selling product, won't grow your business value.
Remember, you just went through adding variable cost in this last burst of what you thought was growth. Do you want to build your business on the same false allusions again?
comments
0 Responses to "“Never in my lifetime did I expect this would be so severe!”"Post a Comment