I sent this email to the President of a company I am consulting with. See if it can help your thinking during the slow economy.
1. Whether or not the note comes due doesn’t change anything for the next few months. The money is still due and deserves a return. More investment money will only enable you to limp along longer without accountability.
2. The economy is not an excuse for 4 years of no growth and no profits. The purpose of every successful company is to grow and make a profit. The more sales and profit, the more valuable the company.
3. The sole purpose of a real company is not to sell it, but to grow it. Entrepreneurs grow companies. Small business owners own a company that barely makes them a living.
4. CEO’s of companies who don’t steadily increase the value of their stock and/or grow their revenue get replaced fast. No excuses. They make it happen or find another job.
5. The meeting we had was the same meeting we have had at least 4 times over two years:
- No growth and not profit.
- No positive sales results.
- Not enough sales activity or impact to attract new customers.
- For whatever reason, you have not hired more sales people to close enough leads
As you know, I study entrepreneurs and small business owners. 95% of them get stuck and can’t grow beyond a certain level that leaves them short of successful. Good intentions, hard workers, work 80 hours / week, care about their product, and very convinced their way is the best and only way. But these 95% of all small businesses don’t move beyond the owner’s ability to control all the work. This keeps them stuck at a level they can’t get beyond. They don’t know what to do next except try to work harder themselves. They get frustrated when questioned because they value working hard over getting results. They never can find any good help they can afford. They are slow to hire new people who will help them grow the company. They don’t put strong people around themselves because they think they cost too much. They can’t let go, can’t delegate, and micro-mange everything that happens every day.
The only way to break the cycle is for the owner to change their habits or be replaced by another manager who knows how to manage instead of doing the work. For example, my friend has started 6 companies and eventually gets replaced or fired by the investors when the company gets stuck. With new direction and leadership, the company gets back on track.
Now what is your solution?
I DON’T want to Survive for another year. You have a great product that saves companies money. The economy is not the reason for the lack of sales. It is a lack of enough excellent and qualified people selling. You can’t do it alone with weak players surrounding yourself. You must reshuffle your staff to make way for at least 1 more fully qualified sales closer to get the revenue back on track. Time is too short to hope for a big deal or another loan to bail you out for another 6 months. I will close this rant with one of my quotes:
“The results you get are a direct indicator of the leader of an organization.”
It is time to face reality. What BIG change do YOU need to make (and your company) to get different results.