Archive for July, 2009

be careful promising the farm
July 28, 2009

When we started our business a year ago, we were desperate for opportunity. We knew we could do a great job but getting a seat at the table in a crowded market is really tough.
So we went about promising things to customers that would have been ludicrous for our competiton to match: free delivery, razor thin margins, savings of 10 percent compared to the next best nid, etc.
The gamble worked; we ended up building a healthy customer base and we have successfully started a profitable business in a bad economic climate.
That said, we still have customers that receive the same “specials” from a year ago only now those specials cost us a lot of money. For example, we offered free delivery because our staff had enough free time to drive orders to customers. Now, we are so busy that we have to hire a courier at $30 a trip to keep the promise we used to get the customer in the frst place.

When you’re getting started, its understandable to do whatever is necessary to earn business so you can live to fight another day. Just be careful in promising too much. You’d hate for your earliest customers, the ones who made all of this possible, to end up as drains on your bank account due to your early desperation.

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growth v stability
July 9, 2009

Growth takes money. No way around it. To grow your business requires cold hard cash.
On th flip side, when growth slows down you might find yourself with some cash in the bank. While it may be tempting to see the bottom line inproving and celebrate, the truth is that growing your business as long as possible is always a great thing.
Yes, if you own a small shop or niche firm you may turn down business andquit growing. But the real goal should be to swallow up as much marketshare as you can. So you must find a way to not only sustain but promote growth.

As an aside, did you know that john paul wahtshisname from john paul mitchell os the majority owner of patron tequila? He makes 3x the money on alchohol as he does o shampoo.

growth v stability
July 9, 2009

Growth takes money. No way around it. To grow your business requires cold hard cash.
On th flip side, when growth slows down you might find yourself with some cash in the bank. While it may be tempting to see the bottom line inproving and celebrate, the truth is that growing your business as long as possible is always a great thing.
Yes, if you own a small shop or niche firm you may turn down business andquit growing. But the real goal should be to swallow up as much marketshare as you can. So you must find a way to not only sustain but promote growth.

As an aside, did you know that john paul wahtshisname from john paul mitchell os the majority owner of patron tequila? He makes 3x the money on alchohol as he does o shampoo.