Archive for August, 2015
The question of when to “grow or go” faces every business owner. You stand at the precipice and ask yourself if you want to
expand the business or sell. How do you decide?
The questions come down to priorities. The quantifiable ones are the easier ones.
Are you making money?
Are you making money? Seriously what profit are you generating on a consistent basis? Look at the focused hours you are investing in order to generate that profit. What is your time and effort worth?
On the good days when business is flowing and you are receiving the emotional satisfaction of achievement, the monetary amount seems less significant but on the bad days when customers or employees are unhappy about something, the significance changes dramatically. At 8 am this business may feel like the best idea you have ever had, but at 2 am when you awake from a restless sleep wrestling with a problem, it seems like the worst idea.
Is it enough?
On a strictly quantifiable basis, is the amount of money you are earning enough to pay your bills, save some money for your future retirement and support the lifestyle you envision for yourself and your family? If you just felt the twinge or a knot in your stomach, then perhaps this calculation deserves a more serious analysis.
I remember when this very dilemma arose in my business. The first time it arose, the industry was growing, my market share was growing and the potential appeared strong that my income would be increasing. I streamlined a few details with the operations and overhead to improve the current service to my clients and staff.
My business was property management. At that time I was working primarily with executive clients (non-rental clients who were absentee owners) and owners and tenants in long term rental properties. Since my company was located in a ski resort, the decision was to expand into vacation rentals as well.
Vacation rentals required considerably more employees to handle housekeeping, reservations and maintenance. It also required expensive marketing and an entirely new segment of owners who wanted to rent their homes to vacationers. The increased cost to the company was enormous but so was the profit potential. Vacation rentals generate a much higher profit margin for the company and the owners when everything works: the snow, the flow of renters and wise management decisions.
The risk and initial company capital outlay was scary high. The reward potential was also temptingly high. My decision was carefully weighed from all angles. The decision was to go for it. Thankfully, it exceeded my most optimistic projections.
How long will the profit be sustainable?
At that time the profit potential appeared to be increasing. 15 years later when the same decision of “grow or go” arose, the
decision was to sell.
- Profit – amount, trend up or down, consistency, and potential for the future
- Hours – total personal hours, rate per hour actually earned, potential for the future
- Industry- trend for the industry locally and nationwide
These are quantifiable considerations. Numbers are absolute. If the decision is to sell as mine was 15 years later, these are the numbers which a potential purchaser will also scrutinize.
What is your personal passion level? How passionate are you about your business? This is the intangible which weighs heavily on the decision. Even if you are not earning enough money in total or enough money per hour, the personal passion factor can outweigh the quantifiable. If you are so passionate about what you are doing that you would do it even if you were not making any money, then by all means continue.
The emotional factor weighs heavily. What are your priorities?
- Financial needs
- Future planning
- Personal satisfaction
There comes a time when we look at what we are doing and determine the future potential. If you continue on your current trend, will you reach your retirement goals? Even more pressing is the question of paying your current bills.
Deciding to grow or go is not easy, quick or non-emotional. You invested your hard earned capital, brain power, precious time and emotions. The economic climate changes as does your personal situation. Deciding to “grow or go” is intense.
Are you seeking more success in your life and career? Inquire about hiring Elaine Love for your next sales training, executive meeting or personal growth presentation. Let me inspire you to reach your potential. www.Elaine4Success.com, www.Elaine4Success.com/contact.
With the world spinning at a crazy pace, what can we actually control? Probably not politics other than to exercise our right to vote. Probably not the economy other than to pay close attention to our personal income and expenditures. Probably not the weather.
What can we control? We can control our own thoughts, words, actions and our personal attitude.
A bad attitude is like a flat tire. Change it or you are not going very far, very fast or very smoothly.
Situations happen and not all of them are exactly the way we anticipated or desired. We cannot always change what has happened but we can always control our attitude. We have the right, the ability, and the responsibility to control our personal attitude.
We can choose to growl, grumble and complain – none of which will be likely to achieve any positive result for anyone, including ourselves. We can choose to ignore it and hope that it goes away; that may work for an ostrich which sticks their head in the sand, but not highly recommended for humans. We can choose to adopt the attitude of “what good can come from this?”
When you intentionally look for the good, you are far more likely to find it.
You apply to refinance your house. You go through all of the hoops, loops and mountain of paperwork with assurances that all is well and everything is going forward. Days, weeks and perhaps a few months drag by only to be ultimately denied. What can you do? You can apply to another financial establishment, you can plead your case with this one, or you can go to work correcting whatever element caused you to be denied. If your credit score was too low, start working on raising it. If your income was low, find a way to earn more money. You can adopt the attitude of being appreciative that they flagged you on the items to make your life better. The situation is the same; it is your attitude which can find the positive now and for the future.
Adopt the same mindset for a big sale, relationship or promotion. You may have had your heart set on the achievement. You were already dreaming
about the future with as a fact. Take a moment to adjust. What good can come from this unexpected result? Could it be that something better is just around the corner? In any case what benefit is there to you or anyone else by adopting a negative “oh woe is me” attitude? None.
What good can come from this?
Though it may feel like it for a short time, no sale, relationship or promotion loss is fatal.
No matter what happens in your daily life, the one element you can always control is your attitude.
“People may hear your words, but they feel your attitude.” John C. Maxwell
Are you seeking more success in your life and career? Inquire about hiring
Elaine Love for your next sales training, executive meeting or personal growth presentation. Let me inspire you to reach your potential. www.Elaine4Success.com, www.Elaine4Success.com/contact.