Weighing the Costs of the Not so Free Puppy
“There’s no such thing as a free puppy” is a common saying heard when an appealing business opportunity presents itself and you begin weighing the risks. It’s true that puppies (i.e. great business opportunities) come at a cost, but they can be worthwhile given the right evaluation, preparation, and planning. All too often the preliminary leg-work and critical strategy for success don’t come to fruition and what seemed to be minor details become major impediments – when the cute puppy becomes expensive. Items such as local or regional trends, raw material quality or availability, delivery logistics, or internal staffing pressures need to be considered.
Knowing whether a product or service is in demand is not enough. Even what seems like the most insignificant decision can have significant implications on business processes. For example, an operation in the food sector might be set up for processing a fine grain and there is new demand for a grain of a “similar texture.” This seems like an easy opportunity for diversification so the customer is secured, materials are sourced, volume and delivery schedules are set, and the contract is signed. Familiar and simple, right? What wasn’t realized is the product does not handle the same and requires a finer screen, which requires time to install and clean between products. The product also cakes, creating slower processing and a much more intensive cleaning schedule between transitioning to the operations’ traditional product. The after-the-fact realization is that the transition time for cleaning and screen installation is prohibitive in meeting former and new contract obligations and in planning staff. The “new puppy” is now jeopardizing customer relations, causing employee burnout, elevating stress and ultimately impacting the bottom-line.
Pursuing new opportunities should be exciting and a strong growth point for your business. All Points West will do the heavy lifting in gathering the multi-faceted information that is needed specific to your business so you can make an informed decision, streamline profitability, and enjoy your new puppy.
