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O P I N I O N
A pattern of inaction If you are you stuck in neutral, break out of the rut by asking questions, altering your approach, and accepting the possibility that there may be a problem.
S ome of us have a hard time taking action when it’s needed. Sometimes we deny that we even have to take action.
Like some firm leaders in our industry, this owner acknowledges that significant changes are needed to save the company, but won’t take the steps necessary to enact those changes. It’s frustrating for me, but even more so for the employees, because they can see where the company is heading. “This company is on the path to failure due to the owner’s pattern of inaction.” The owner has never had a business class and everything about operating a business has been learned through trial and error. There are some firms in our industry that started the same way. They began with a great idea, but never felt they
I’ve been a consultant for a retail business for most of the past year and have been frustrated by my client’s lack of action. Granted, I’m a consultant and don’t have a financial stake in the business, but I treat the company as if it were my own and I don’t like to see a company fail. This company is on the path to failure due to the owner’s pattern of inaction. The owner opened the business two years ago with a very small capital investment, no line of credit, and no business plan. As a result, the owner has no financial resources to rely on during the negative-revenue months. The business’ gross revenue has increased by less than 5 percent in the past year, but its net revenue has decreased by more than 10 percent. In short, the company is losing money almost every month, but the owner has not done anything to correct the downward spiral.
Bill Murphey CONTINUING ED
See BILL MURPHEY, page 8
THE ZWEIG LETTER June 27, 2016, ISSUE 1158
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