A sailing ship needs wind to move towards its destination. The stronger it is, the faster the boat moves forward. However, when the wind is too strong, it jerks the sails and raises waves that can sink an entire ship. The situation of companies in our industry is similar. He laughs himself at how banal the analogy is! But true! And I mean the phenomenon of the collapse of companies as a result of their rapid development, at a time when the market is good – as it is now. It’s hard not to notice that we have a lot of work to do, that our competences are in demand on the market. Or maybe even that demand (eventually) exceeds supply. This is the time when many companies already relate or will soon achieve unobserved sales success. The speed and amount of money flowing through your accounts will increase – perhaps even several times. An ocean of opportunities, a sea of opportunities! Many boats sink in such waters.
Below, I have listed some good practices that will help you not find yourself with your keel towards the sky.
Take care of fluency. It is because of its lack that the companies in full swing break down. Avoid investing for your money. The amounts of the advance payments should cover at least the value of the purchase of materials. Because if you can afford to finance one or two projects at the same time, then five or ten – certainly not.
Quote and design carefully. While inflation is rampant and inquiries are much more frequent, it is very easy to get confused in a quick quote. If a customer orders an offer with errors, you will both lose. The point is, after all, to have a lot of experience – but good, not bad!
Be modest. After each hill there is a hole – I wrote about it in the previous issue. Be restrained in making unnecessary expenses, but also in rejecting customers who have been with you for years – because others are temporarily more profitable. Maybe you remember that recently, at the beginning of the COVID pandemic, I wrote exactly the same in the context of a customer who should be loyal to the supplier?
Be careful. Your company with a turnover of 5 million and 50 million are two completely different institutions. You may not be able to drive either of them.
Some of the above-described cautions come from the knowledge gained in college, but some from personal experience – unfortunately. I keep my fingers crossed for you, your companies and our industry.