If you are not growing you are shrinking

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No business is stable; you are growing or shrinking. Money is an accelerant; it does not care if your business is growing or shrinking. It will make either one happen faster.

No business is stable; you are growing or shrinking. Money is an accelerant; it does not care if your business is growing or shrinking. It will make either one happen faster.

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  • 1. IF YOU ARE NOTGROWING YOUARE SHRINKINGFROM “FIRE SOMEONE TODAY”BY BOB PRITCHETT
  • 2. THERE ARE TWO KINDSOF BUSINESSES1. Growing2. ShrinkingA business is like a hot-air balloon • It is going up or it is going down • It is never standing still
  • 3. GROWINGBUSINESSESYou know when it is happening: • New employees • New customers • More money
  • 4. SHRINKINGBUSINESSESThe shrinking can be invisible in the early stages • People think there’s a temporary downturn • People think it’s a seasonal variation • People blame the economy • People think things are “stable” • There are no stable businesses
  • 5. A STEADY TOP-LINE IS ASHRINKING BUSINESSSteady top-line revenue doesn’t offset rising costs • Competition erodes margins • Your customers want to pay less • Your competitors want more of your business • You may not be getting more efficient, but someone is • Inflation continues • Even a couple percentage points a year adds up over time • Employees want raises • Employees can increase in cost faster than inflation • More experience, education, and ambition gets more pay • Growth creates new internal job opportunities • Stable businesses have to absorb cost or turn-over staff
  • 6. DON’T BUILDPRICING WALLSRetain the ability to change prices quickly • Be careful what you label and how • How long does it take to re-price everything? • Do you have to scrape sticky tags off every item? • Avoid overly-memorable price points • If you have a “99 Cent Menu”, you’ll have a hard time changing pricing to reflect a 3% increase in costs.
  • 7. GROW PROFIT ANDCASHYou can grow in lots of ways: • Gross revenue • Employee headcount • Product line • Floor space • Customer base • Locations • VisionAll good growth should be growing profit and cash, too • Profit is why • Cash is how
  • 8. MONEY IS ANACCELERANTMoney doesn’t help a business growMoney helps a business move faster • The money doesn’t care which direction you are moving • Money helps growing businesses grow faster • Money helps shrinking businesses shrink faster • Make sure the plane is aimed up when you accelerate itMoney is like gasoline • In an engine, gasoline means more power and more speed • In a building, gasoline means more fire • Your building burns down faster
  • 9. WANT MORE?Follow me on Twitter @BobPritchettRead my blogJoin my mailing list at http://firesomeonetoday.com • I’ll mail you when I write moreRead my book • 5 stars at Amazon.com • Free chapters and summaries onlinehttp://about.me/bobpritchett