Wednesday
Nov252015

Why Can't I Continue To Maintain That Large Profit I Made Last Year?

Do you often wonder why you are not able to replicate the good year that you had some time ago? Generally, the causation is not that your marketplace has changed so drastically, but you just “got lucky” in spite of yourself.  Our business mindset is the variable factor that most times allows us to prosper at different levels.

We often forget that when we “got lucky,” it involved increases perhaps in expenses for more employees, more inventory and a change of facilities to accomplish this ”luck.” No plans were made during this lucky moment except to put out fires; as opposed to thinking of this as a new adventure for the company at continued, higher levels of activity and profitability.

Again I use the old rule; go into the closet, talk to yourself and think about the fact that “good luck” does not have a long life. It is you who must have the reserve capabilities to intellectually adapt your company to its new environment, its activities and the mechanisms needed to support this happening.

During the same time, your thinking process has to well comprehend that extraordinary expenses should only be borne after understanding your position in your marketplace. Be vigilant of present and future cash flows. Understand that rushing and utilizing extreme expenses, most times, is a waste of capital and has a lesser accomplishment than if thought out over time.  Plan expenditures and keep in mind that the goals for the usage of such need to be defined and risk calculated. 

With the above in mind perhaps you will “get lucky” again. With the nuance that it was planned.

That’s how we do it at Bone Robertson & McBride Inc.


With good health to you,

Don Bone,

President
questions 800-510-1095

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