A refresher to allow you or a colleague to PRUDENTLY take greater risk
to scoop up some of the opportunities underway. Why, prudently?
Because, unfortunately this is an evergreen topic which too
many organizations only remember or learn after very expensive costs.
Growth missions and goals cyclically go out from on-high like
“Grow from 80 to 100 million dollars”. Add or subtract
a zero for the size of your organization. The CEO meant grow AND add profitable business with at least the gross margin on existing business so the bottom line swells to newfound levels of prosperity.
Laugh or cry based on what version of this you have seen or heard about. Personally, I still hear leaders ( including board members) and employees commiserate about how their former 30-, 100- or 800-million-dollar organization makes less money after toiling to reach their revenue goal.
Grow profitably sounds simple, basic and even American Apple Pie simple. Until communication and execution challenges occur, as always happens.
Remember what happens? One or more things like:
1. Sales and business development hear sell, not sell profitably.
2. The incentive plan is not updated to reward profitable sales for all departments, whose support is needed.
3. An acquisition adds revenues with bottom line losses.
I stop at three past examples, all of which I have seen (and some more). Please share your stories offline and I will compile anonymously for the benefit of all in a future mailing.
Forewarned, your organization can eliminate these 3 major problems inexpensively.
1. Make sure the strategy soundbite mandates sales at existing or better gross margins.
2. Update the incentive plan or bonus structure for the new strategy.
3. Shine the spotlight a little brighter on the proposed M&A target.
I always have time to help a friend or colleague on a discussion or project. Thank you for considering these comments. Please call me at (678) 319-4739 with your questions or an associate you may want me to contact, or you may want to give me input about this email.
You can still email me at [email protected]
www.FiscalDoctor.com
Thanking you in advance, Gary
Gary Patterson
FiscalDoctor, Inc.
678-319-4739 www.FiscalDoctor.com
PS. Currently helping two very narrow very crucial niches:
Helping assisted living and eldercare facilities earn found money versus in an area where almost all only receive token money now.
And
Helping Physician Practices generate recurring annual reimbursements per patient of $500 to $2,100 cashflow positive day 1 and NO CAPEX, and improving health of patients.
Appreciate your advice, insights, and recommendations.
