Cut Your Losses

There are some businesses or products and services that stick around way past their time. Sometimes it is better to cut your losses and move on.

Know When to Say When

You may have a company or product that has performed very well for quite some time. Then one day you look up only to find that either what you offer is losing demand or somebody else has something better. If you cannot revamp or rebrand to become competitive, it may be time to drop a product or product line. Though a more difficult decision, this unfortunately sometimes becomes the situation for an entire company.

Fads

Many times a product is a fad. Think of some of the toys that have been popular in years past that you know longer see. A fad can come and go very quickly. The key is to always be looking for a follow-up product or service, even if your current offerings are not a fad.

It is also possible that the way you market a product may change. A classic example is books. In the case of books there are two issues. One, the ability to order online has put tremendous pressure on traditional brick and mortar bookstores. Two, the emergence of E-books and print-on-demand have changed the way books are produced and delivered.

Keys to Success

There are several things that can contribute to the continuing success of your company:

  • Stay on top of trends in both products or services and delivery and marketing methods
  • Learn from both successes and mistakes
  • When possible, enter a market in a test mode. This makes it possible to both enter and exit a market quickly and for lower cost
  • Streamline operations by considering outsourcing some functions

Is your company being deliberate and active in planning for the future? If the old is no longer working, it may be time to cut your losses.

If you want to know more, contact AimCFO – Contact

As always, your comments are welcomed.

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