Why do so many businesses go this way?
Most businesses start out as just an idea or a need to be fulfilled.
And with a bit of luck and a lot of hard work they grow and prosper. But . . .
. . . over time they quickly fall by the wayside, or they continue to grow.
And if they do . . .
They get more and more customers, sales go through the roof, infrastructure expands, etc.
Until they become too big for the original owner to manage, or . . .
they become an attractive takeover target.
The new owners saw a plump organisation, with lots of opportunity to cut costs and increase profits. Or they just thought that they could do it better than the original owner who made the business a success in the first place.
Changes under the new ownership include rationalising product or service offerings, cost cutting, staff reductions, etc.
You see this a lot in hospitality. A new owner buys a successful restaurant or cafe and the first thing that they do is change the menu, change the decor and cut the staff.
And quite soon you see the patronage drop off, and they are left wondering why that happened.
Or else the new owner makes the business grow so quickly that existing resources and staff cannot cope.
And if there are no business systems, or the existing business systems are not scalable for the growth, calamity follows.
It’s true that this is a widespread phenomena, not only in hospitality but in many industries.
We recently experienced it first hand with our website hosting company www.hostgator.com
We have had a strong and healthy relationship with Hostgator for about 4 years.
We chose them on a strong recommendation, and we were happy with the service for a long time.
In 2011, some 9 years after inception, they were bought out by another company and we started to notice a decline in services, to the point where we had serious issues in November that forced us to move to a new provider.
So, what is the point of this email . . . ?
- use Hostgator !
- If you buy an existing business that is working, do not assume that you can immediately improve it.
- Make sure that you business runs on systems, and those systems are scalable
Well, that is quite simple really!
Watch this short VIDEO
This brief video discusses why systems are crucial and when done correctly, create a performance structure as important as the organizational structure is to a business or organization.
A past event in 2007 with Micheal Gerber presents ” E-Myth Leadership”.
What should you do now?
- Does your business have good business systems.
- And are they being used and followed . . . and updated from time to time.
- Want some help or ideas? Just contact us at Hotpink Websites now.
In the run towards being a better human being, we must recognize that other people’s value systems are no less important than our own.
~ Senora Roy
Remember – Why do so many businesses go this way?