Friday, October 7, 2011

The growth plan better extend beyond financial finagling

If the primary way your company can be profitable is by moving its headquarters, you're in trouble. If production costs have increased and operating costs have followed, and the best idea your leaders have is to reduce rent, update your resume because your company won't be around long.

Of course, saving on office expenses is wise. It should just not be the primary way a company alters its Income Statement. If you're in the movie business, figure out a way to make money in the movie industry. If you run an engineering firm, figure out how to be profitable in the engineering industry. If you run a bakery, bake some revenue-generating treats. If you're in real estate, move to generate income. But, don't be in the real estate industry if you're not in the real estate industry. If you can't make a buck in the business you're in, it's time to evaluate the business you're in.

Do not expect your shareholders and stakeholders to fall for financial finagling, even if it works short-term. They recognize when a company is at the end of its rope holding on.  

Be creative, be the expert in your industry, be innovative. Come up with ideas that inspire people--employees, clients, shareholders--rather than ideas that reek of last-ditch desperation. You might be surprised by what inspired, All-In, people do when they are invited to do more than pack their desks into boxes.




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