Devoted to Managers and those that seek to improve their management skills

"We had to keep expenses to a minimum. That is where it started. Our money was made by controlling expenses."

There was another time when Walton talked about controlling expenses alone cannot make the company money. So it seems that he's contradicting himself here. What's going on?

When he talked about controlling expenses not making the company money, he was talking about the importance of moving merchandise. If nothing is being pushed out of the store, it won't matter how great at controlling expenses we are.

But what he said above is also true, and not contradictory to one another.

What he was saying is there needs to be a foundation within a company of controlling expenses no matter how much merchandise is being pushed out the door; and that includes digital merchandise also.

When the discipline of controlling expenses is part of the foundation of a company, it can then go forth and market and merchandise in a way that moves a tremendous amount of product or services, without the fear that money is coming in the front door and going out the back.

In saying 'going out the back,' I'm not talking about theft, but rather am talking about controlling spending and strategically investing in things that help to streamline processes to the point that it is a money maker for the company.

What all of that does is provide a financial base where increased flexibility and readiness is there for when key moments arise in a company. In other words there will be cash on hand to make moves when the time is needed, and at very favorable terms and conditions.

All of this puts us at huge competitive advantages over our competitors, as we can not only do what is needed, but ride out slow times that inevitably come without devastating the company. Controlling expenses is one of the truly great disciplines that great managers and executives have as part of their business arsenal.

Other Sam Walton Sources:

Sam Walton

Sam Walton: 10 Rules for Building a Successful Business

Sam Walton - Retail Success Story

Sam Walton and Wal-Mart

How Wal-Mart Got Started

Sam Walton: King Of The Discounters

Sam Walton: Great From the Start

Is Wal-Mart Too Powerful?

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