What a great, interactive, positive call yesterday. Thanks for all your participation. Your Biz Plans are coming together…and the effect is life changing. 🙂
After the call, Ty sent me this email. Thanks, Ty, for your sound advice.
I realized after the call that I probably wasn’t as clear in my comments about my concept of “saving your way into prosperity” with respect to budgeting.
As I mentioned on the call, with our previous company, we didn’t have Budget Line No. 1…and in the end, when the manure hit the ventilator, we just started cutting for cutting’s sake. No rhyme or reason to the cuts, no thought process or analysis as to the cut’s impact on top line sales. The only consideration was how many dollars. Our mentality was — sales are down, eliminate every possible expense. Shrink the company, fast, right now.
Despite the slash and burn cuts, we found ourselves at the point where we were trying to land Moby Dick in a rowboat…hence my conclusion that “you can’t save your way into prosperity.”
Had we had a true budget in place, a real understanding of the financials, and been at KFP, we might have realized which expenses were directly related to top line sales; and that cutting those expenses were simply an excercise in pulling the life support plug on the patient.
The high tuition lesson here…having the great team in place costs “x”
dollars, and they are the ones that got you there in the first place. Figure out the top line necessary to support that team, and sell your butt off to make the top line match. Offense, as you put it.
But, without the facts (budget & financials) in front of you…it’s not tough, it’s impossible.
You’re welcome to edit this ramble and share it with the group if you like.
As much as I hate budgeting, I won’t operate any longer without it.
That’s my two cents…