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Author: Don Monteith Article source: http://www.kabish.com/. Used with author's permission.
Second thought! Just in case. YOU or someone you personally
know may fit the following picture of success which may carry
too much risk for comfort.
You can sit back and simply enjoy the day. Let tomorrow
take care of itself. Can't you just hear it? I've got my
money "salted" away in a safe place. Getting great returns.
No risk! Where? I'm invested in the dot.com firms of
the future..... remember the bubble that burst?
YOUR BUSINESS
Obviously, you get the point. There is little need to bash
the dot.com failures. Our goal is YOUR business. Your
future expansions for growth.
EXPERIENCE is an expensive teacher. There are BETTER
resources. Some of us have learned in the School of Hard
Knocks. At least YOU can benefit by knowing some of our
mistakes which we freely expose for your perusal.
Yes, most of our mistakes were NOT smart. Could have
been easily corrected. Most 'goofs' are so obvious AFTER
the fact it's embarassing to tell anyone.
DIVERSITY Is KEY --
Is that just a nice "sounding" word? Only to those who
FAIL to understand it's HUGE impact. SUDDENLY! Almost
an Overnight kick.... your financial well being can be GONE.
Many of us have been there. All of our business LINKED to
ONE account. Are you in that position now? I hear you loud
and clear. You are saying, "I'm making good money and
business is great. Why should I change?"
If that is the case, YOU are NOT in control. Unless you
have a service or product without equal or competition, YOU
are at risk. Simply ask... if my ONE customer or my major
customer GOES AWAY tomorrow... what happens to my
business?
Are your equipment debts personally guaranteed? Is your
home at risk? Do you have a long-term office/warehouse
lease? Bank loans?
OUR EXPERIENCE
Yes, I was fortunate and survived. At the time, I had several
businesses not dependent on each other. Regardless,the impact and surprise income loss was real.
For 10 years it was wonderful. Profits were basically
guaranteed. A major Insurance company needed "outside"
typists. Large companies do strange things. Head-count!
Move staff (human resource) cost to "service" overhead expense.
Situations change! Buyers of services RETIRE. Management
gets promoted to a new location. Offices consolidate.
DOWNsize. UPsize. Go out of business! Bankrupt yet still
oweing you money that will never come.
Most of the above happened! Our "connection" moved. I
had no idea the company was going to suddenly NO LONGER
need our services.
It's happening around us every day. Technology! Yesterday
is gone -- history. New ways of doing business. Automation.
Push-button society. Home based workers.
In a FLASH! ONE day! Our business (95%) was gone. We had
NO warning at all before the doors shut in our face.
WHAT COULD HAVE HAPPENED?
To capsule, we were able to use the equipment in our other
businesses. Our lease on the space had NOT been renewed.
Our own staff was transferred within. We lucked out!!
However, I "shudder" to think of the consequences that
could have forced most folks out of business.
Had we signed another 5-year lease, the cost would have
exceeded our PROFIT for the prior 10 years.
Equipment leases would still hang over our heads.
Staff? Their jobs would have been gone in a flash.
YOUR CHALLENGE
Step back and look carefully at your business risks.
Don't assume anything. Your "good old" boy network has
NO guarantees.
Make DIVERSITY your #1 priority in 2005. Add new clients.
Add new products. Quickly reduce your RISK away from any controlling entity. Seek to make 10% a TOP line maximum
dependence on any one source of income.
Large buyers have been known to absorb ALL of a major
manufacturer's production. As an astute business executive, YOU can see the END in sight. Don't let it happen.
Your customer now CONTROLS your business. Profits are no
longer your decision. Expect the "squeeze" to intensify!
Too often, we can't see the forest for the trees. Same
experience happens to a small service business, too.
ACTION TIP: Best advice is simple. DIVERSIFY! Never allow
ONE client to OWN your business. 10% is a good MAXIMUM for any
single buyer. Reduce YOUR risk. Add new clients or new products as quickly as possible. Don Monteith spent 32 years in the Staffing Business. His firm placed thousands of job candidates in their dream job. Today, he shares his expertise. Learn more by visiting his website at:
http://www.HowToGetYourDreamJob.com
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