SGIA Journal November/December 2013 - (Page 45)

feature 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 Financials 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 big call. 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 a lender. enough quantitative and qualitative * What will your data to recognize your options and their profit be? Do you consequences. really want to take on a big initiative if Rock LaManna, President/CEO, LaManna Alliance Visit SGIA at 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
New Products
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