SGIA Journal November/December 2013 - (Page 45)
Making Big Decisions:
Will Doing Nothing
Destroy Your Business?
The ideal situation is to have two options, with concrete consequences resulting
from either decision. Acquire enough quantitative and qualitative data to recognize
your options and their consequences.
Here's the scenario: You're the head
coach of your favorite NFL team, and
you're in the fourth quarter of the Super
Bowl. Your team has the ball, and it's
fourth and one at the goal line. You have a
very big decision to make.
Now you trail the game by three points,
so you could kick the field goal, get the
tie and force overtime. However, there
are 50 seconds left on the clock, and the
opposition has been moving the ball at
will. If you kick the field goal and give it
back to them, there's a very good chance
they'll move the ball right down the field
and kick another field goal for the win.
You call a time-out, and all eyes turn
to you. It's time to make a decision. What
do you do? What if you did nothing?
Just sat there, crossed your arms, or
even got in your car and drove home?
It's unthinkable that a coach would do
that. The consequences would be severe,
but that's not the case for many business
owners faced with a big decision.
For many, doing nothing is the
preferred option to making those big
decisions. Unfortunately, in almost every
case, it can be disastrous. Let's review how
"doing nothing" can impact every area of
your business, from your business strategy,
to financials, to your operations. Then
we'll learn how you can make the right call
But what if you chose to do nothing?
- and guide your own team to victory.
How will it impact your financials over
the long run?
How Doing Nothing Impacts
No business can stand still. You're either
growing or you're losing ground. "Do
As Ron Castleman noted, sometimes, doing nothing" long enough, and from a financial
nothing actually makes sense. Castleman, perspective, you'll find your revenues
a corporate and business attorney and dropping, your profit margins dwindling,
LaManna Alliance senior financial advisor, and your lender knocking on your door.
once owned and operated a nursing and
Just like the football coach who refuses
rehabilitation facility. There came a point to make a call, you'd eventually suffer the
where he had to decide if he should invest same fate: You'd lose your job, or in this
over $2 million in a new treatment model. case, your company.
His team presented him with a number
of positive outcomes from the investments, "Big Decision" Financial Considerations
but there were nagging inconsistencies as For consideration in terms of your finances
well. The numbers just weren't adding up. as you make a big decision, these questions:
In the end, he did nothing. "It is perfectly * Will you have cash flow? If you're
correct for a businessman to say, 'Let's do
considering an equipment purchase,
nothing' until the facts or the situation is
or pursuing a new product line, what
clarified," he commented. However, don't
will be the impact on your cash flow?
use that quote as a cop-out for making the
This data will benefit you in multiple
ways: You'll know if you can cover
The ideal situation is to have two
the payments for the new endeavor,
options, with concrete consequences
as well as your current costs. It may
resulting from either decision, just like
also influence your negotiations with
in our football coach scenario. Acquire
enough quantitative and qualitative * What will your
data to recognize your options and their
profit be? Do you
really want to take
on a big initiative if
Rock LaManna, President/CEO, LaManna Alliance
Visit SGIA at SGIA.org
SGIA Journal ■ November/December 2013 | 45
Table of Contents for the Digital Edition of SGIA Journal November/December 2013
How to Survey Your Print Customers
Nanography™ and Nanotechnology: A Primer
How to Select Your Next Wide-Format Printer, Part II
Determining & Nurturing Your Areas of Opportunity
UV LED Printing: Will Your Business Be Left Behind?
Making Big Decisions: Will Doing Nothing Destroy Your Business?
MIS: Is Your System Working For You or Against You?
Sustainability and Media
Standardization and Process Control in Wide-Format Printing: Why It Will Change Your Life (And Make Your Customer Happy)
Test the Water Before you Commit with SGIA's Digital Equipment Evaluations
How CorelDRAW® Can Help Transform Your Sign Shop
A Time for Leadership: A Survival Guide for the 21st Century
Extracting Lessons from SGIA’s 2013 Industry Data
UV LED Technology & the 2013 SGIA Expo
The Ins and Outs of Color Management
SGIA Bestows “Product of the Year” Designation on Top Entries at 2013 SGIA Expo
SGIA Journal November/December 2013