FIX, don’t FEED the Problem...
If your contracting business has been struggling to make ends meet and having troubles with cash flow, the natural reaction is to try to create more income to fix the problem.
This sounds good in principle, but there’s a hitch...
The ‘obvious’ way to create more income is to take on more work. Adding more load to an already disfunctional business model is only going to make matters worse.
If your current business model isn’t performing, how can you expect overloading it will make it perform better??
Before the decision is made to take on more work, there is a need to identify the underlying issues in the business. They may be simple, they may be complex... But whatever they are, they need to be addressed before forging ahead and digging yourself a bigger hole!
In most cases, a band aid fix can be applied in the short term to get things rolling in the right direction, then further work can be done while you are still operating. This way, your bottom line is improved to an acceptable state, relieving immediate pressures while continuing to improve the business.
Once you’ve remedied the underlying issues and you are headed the right way, it’s then time to plan for the future based on your new model. This may be to grow, shrink or stay a similar size. Whatever it is, you can forge ahead with your new knowledge and keep those lessons learned in the back of your head to prevent you from going down the wrong path again. (Hopefully, without too much damage done in the early days!) While over time, you’d slowly lost control of your business and its direction, taking control is easier than you think and can be done relatively quickly compared to the long slow slope down. Get in contact with us sooner rather than later for a confidential consultation and review of your current situation.
From a slight tweak to a major overhaul, the answers might be staring you in the mirror, just needing someone from outside to wipe away the fog...