Hi, I’m Evan Carmichael. Welcome to another edition of Ask Evan. In today’s episode I’m going to answer a question from one of my newsletter readers Tony who runs a construction company and he found as he was starting up, he ran a successful company, wanted to offer more services so he partnered up and acquired a whole bunch of other businesses so he could be a one-stop shop but now is finding that it’s falling apart and people aren’t paying their bills on time and he’s losing money and wanted some advice on how to, you know, fix the situation and get back on track.
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So Tony thanks for the question, really sorry to hear about your situation. It can be common for a lot of entrepreneurs to try to grow too quickly or grow in too many areas and then be faced with a cash crunch. I think one of the most important rules in business is you want to build it around your customer.
And it sounds like you were trying to do that; you had your construction company, wanted to bring on partners and bring on other businesses to provide more value to your customers but I would rethink all of the different services that you have and see if, you know, maybe some of them are not revenue producing or they’re not really adding a lot of value to your customers especially for your cash crunch situation.
I’d look at your top customers, see what value they’re getting from you and you know, which services that you’re offering that you may have to cut lose and those are tough decisions because that’s money loss and employee jobs potentially as well but you want to make sure that you’re able to continue on as a business and I’d try to build it again, go back to that mindset of building around your customers and focus on only the services that are really adding a lot of value to your major clients.
So look at every business that you brought on and see, “Do we really need to have all of these businesses still as part of what we do? And can we trim the areas, cut them out that are really not adding a lot of value to the business. Remember that to make money you have to provide a lot of value and the more value you provide the more money you’re going to make, right.
So talk to your top clients, see maybe if there are still things that you’re not doing that you could to do help solve some of their problems and that could be another path of additional revenue coming into your business, help get your company up to the next level and also provide, you know, more value to your clients; they’re going to like you more, they’re going to give you bigger deals, they’re going to stay with you for longer, they’re going to refer more business to you.
So you want to tie your business around your customers and really focus on their needs, their pains and cut everything else in the business so you can get back to profitability. Hopefully that helps. If you guys like the video, please give it a thumbs-up below. If you have some thoughts or if you a question as well I’d love to hear it if you want to leave a comment under the video. And stay tuned for the next episode.
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