The Training Manual
When the opportunity of a big project comes along it's easy to be seduced by the potential short term gain but often not much thought is given to loss of stable long term growth.
In fact often the big project or mega sale can be the worst possible thing to happen to your business.

The graph above shows a real life example that Tradestaff experienced years ago. The blue line represents our expected growth path based on a real first 3 months, then historic growth for the rest of the year. The pink line represents actual trading when we won a very large contract which was the building of a stadium.
The initial boost made us feel fantastic and we increased our staff (adding costs) and were flat out busy. Of course that created some short term cash flow issues, but we were profitable so that could be managed.
But then the contract finished and business dropped back very quickly. To our surprise the business was now lower than it had been 9 months previously.
While we had been busy our service levels and contact with our old regular clients had dropped and some of them had been seduced away to our competitors.
Not only that but we hadn't been chasing the new business that was fundamental to our long term growth. Overall the graph shows quite dramatically that all the gain from the one off project was more than lost in overall longer term.
This doesn't mean you should turn away big projects; it just means that if you do take something big on that you have to carefully consider how it affects your longer term goals.
If the opportunity of a big deal does come along, ensure you keep doing what you were doing before, so that the big project is an extra on top of your existing business.
Many businesses fall over after their own versions of a stadium syndrome; don't be one of them. |