One mistake that a huge amount of business owners make, along with managers, is to take on clients or contracts that go way beyond the ability for the company to service at the current time.
While getting a big customer sounds good, and may seem to be a dream come true, if you don't have things in place to handle it, I would pass.
You'd be surprised how fast these moments of euphoria can turn into a nightmare. Every decision at times like these needs to be made with the long-term success of your company in mind.
One example I know that happened was that a contractor for a company became a client of a retail hardware store. This looked like a great opportunity except for one problem: they established a corporate account that they go so behind in payments on, that it was hurting the business that serviced them.
The problem is that one big contract can give a huge windfall, but it can also bring down a company that can be disportionately relying on it.
If you're positioned for growth with a workable plan in place and the credit line available for backup while its being implemented, then this could work for you. I would make the decision based upon how many solid, smaller contracts the company currently had so that if any problems arise, there is a solid revenue base spread among a number of different sources.
This would be the deciding factor for me. To literally bet the business on the big deal is gambling, not building a business. Pass on it if you're not ready, in the future you'll look back and be glad you did.
Sponsored link: The outsourcing every manager requires - Tampa Locksmith
Comment Preview