Measure Twice, Cut Once

Making Great Business Decisions is Important in Good Times Too!

Okay so I am using a metaphor. But the old saying "Measure Twice and Cut Once" does apply to just about every business endeavor a company can make.

Most of the companies I am dealing with at the moment have found themselves doing pretty well these days. Sales are up, operating revenue has maintained targeted goals for 2017, headcount is stable. Bottom line, companies are making money! I applaud you all, but caution that in this climate, poor decisions can be made if you are not careful.

Here is some valuable information I have learned over the years that may help you avoid making bad decisions:

• Putting a "Body" in an open slot is always a bad decision; If you find your company is lacking in head count due to an upswing in business, do not settle for just anybody to fill that void. Make sure, and then double sure, that you are filling that position with the correct candidate.
• Maintain manageable inventory levels (distributors and manufacturers of product): Make sure your company is sticking to its guns on inventory turns. With available capital, I have seen too many times that companies go on a buying spree to increase their inventory levels, especially on products that they do not turn "normally", in the hopes that the buying environment will support the increase. Problem with this theory is that if nobody needs it, then you certainly cannot sell it. Please continue due diligence. Just because you have the money does NOT mean you have to spend it unwisely.
• Maintain a steady flow of new business prospects: Always be filling the pipleine with new business prospects. When business is going well, we tend to rest on our laurels, and maintain our current clients because we see sales are north, and all is seemingly well. However, some of those clients are going away. In conjunction, some of the current business you are enjoying from your current client base is also going away. It is a statistical and logical fact. The business you have today will be different from the business you earn in the future. Errosion is real! Make sure your sales force is contacting new prospects and landing new business.
• Stay humble: There is nothing wrong with congratulating yourself and your organization when sales increase and business is going well. However, realize that the economic climate can, and will change on a dime at some point. Stay grounded. Keep working hard. Don't build yourselves up too much on a job well done. Be ever aware that you have to EARN EVERY ORDER!

I believe that the term "Measure Twice and Cut Once" is a great reminder of what can happen if we allow ourselves to take a "Ready, Fire, Aim" approach to any business decision. Stay the course my friends, and plan for a company that can both prosper in good times, and survive the climate changes.