Fraud and Failure are the two big F’s that represent the dark side of business. Both are rampant in on line and off line business models. This article addresses the risk of business failure in business with focus on an online Internet Marketing example since the true story included in this report is recent. It also provides guidance on achieving long lasting business success..
Nearly all marketing copy focuses on building revenue. Building revenue is required to build a business. Building profits is required to stay in business.
During a recent visit with the CEO of a company that markets physical products on line. This particular company has regularly recorded sales near $200,000 a week ($10 million a year.) They inventory nearly nothing and their gross margins are very good.
This CEO I met had no internet experience when he started. He had an idea and taught himself some web site design skills. With a very basic web site he began selling a few products that manufacturing companies drop shipped for him. From there, sales took off. With money rolling in, he hired people to help him and sales increased even more.
Today when you talk with him in detail about his business, you observe two things. He knows a lot about search engine optimization. He can tell you all the positives and negatives about each of the sites making up his VRE. The other thing you will notice is that he is very worried. He knows his business is in big trouble and he is hoping someone will help him fix it.
His business can be fixed. I am not sure who will be selected to help him, since once a person is “shell shocked” it is hard for them to pay attention to any rational discussion for more than about a minute. Others have already influenced his thinking on what should be done. My course of action would be different.
How does all this relates to you? Are you making as much profit as is possible from your business? Are you driving a proportionate share of each new revenue dollar to bottom line profit? What is your comfort level in running a business and I don’t mean just generating revenue?
How is it possible for a company to build online sales with decent margins to a level of approximately $10 million a year and be on the brink of total business failure? How is it possible for a off line company with sales of $1.5 billion to go out of business? Failure happens and the frequency is high.
Here are some things to consider. My FREE course “How To Increase Profits by 30% or More In 90 Days or Less” details the steps I recommend to all clients. Guess what!! This material is focused on the exact steps for achieving continual business success. For example, one of the products you receive with this course is a spreadsheet showing you how to maintain a schedule of cash receipts and disbursements on a rolling 8 week forcast. This ties to a financial flash that reports on your company’s financial strength. I use this very same template with every client whether it has $3 million in sales or $200 million. The course is FREE and you can register at my business consulting site.
A final note: if you are worried about the financial strength of your busiess, please call me at 727-587-7871. The initial consultation is complementay. It is possible corrective action is needed immediately to strengthen cash profits and protect your business. Most often with businesses that fail, the signs are not acknowledged soon enough and the corrective action is inadequate. Don’t let this F happen to you.
Wishing You Health, Wealth and Prosperity
Steve Pohlit, Business Consultant
