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A Few Months

by Lee Huffman

What a wonderful time of year...

It is that time of year again, the changing of the seasons, a time when you want to slow down the pace, kick back, relax a little.

Maybe for you it is the transition from summer to fall. For others it may be the shift from winter to spring or spring to summer.

In the Rockies, it starts in January, as hearts begin yearning for snowy nights followed by sunny days where we could hit the slopes. In the south, some people, like Wayne, slow down during the summer . . .

"Do you really want to make massive changes in all this heat?" Wayne would ask. "Let's just let things ride for a few months."

Wayne's Story

Looking at him, and listening to him, you would say that Wayne was a pretty successful business person. He started his own company a few years back and it was up to around 15 employees . . . well, between 10 and 15 . . . most of the time. Wayne took pride in keeping his employees gainfully employed. Then again, from time to time, if the demand was not there, he had no choice but to ask some of them to take a little time off.

But, he was still successful.

Last year his revenues grew by over 10%, breaking the $1M per year barrier for the first time. This year has been pretty good, too. They are averaging a 1% growth each month. So, there's no reason to push hard on the business until next quarter. Right?

Let's Look at the Numbers

With $1M in revenue last year and a growth rate of 1% per month, Wayne's company can expect to exceed $1.125M this year, $1.26M next, and over $1.4M in year three.

He's talked to his ACTION Coach and they feel that they can easily increase revenues by getting more customers through the doors, getting previous customers to purchase again, and by getting each customer to spend a bit more each time they come into the store.

It will take a little time to get everything that they discussed in their first discussion launched. However, if they focus, they should be able to increase month-to-month revenue growth by one or two percent for the first 4 to 5 months and hold a consistent growth rate from there.

Wayne's Plan: "Let's Wait a Few Months"

"Schools about to get out and summer is just around the bend. We can wait and start the new program in the fall. If we kick things off in September, we should hit about 2% in October, 3% in November, 4% in December, and 5% by January.

"We will exit this year with $1.13M in revenue. Next year we will do $1.75M and we will break $3.15M the next."

A Coach's Plan: "There is No Time Like the Present"

"If you focus, you can achieve 2% in June and ramp up to 5% by September. You can exit this year with $1.2M in revenue. Next year you can be over $2M and year 3 you can break $3.5M."

Procrastination Costs Real Money

Look at these numbers in a table:

Status Quo

Fall
Start

Summer Start

Last Year

$1,000,000

$1,000,000

$1,000,000

This Year

$1,126,842

$1,136,735

$1,202,877

Next Year

$1,269,754

$1,756,928

$2,052,228

Year Three

$1,430,791

$3,155,190

$3,685,506

Which revenue stream would you rather have?

Time IS Money

You may have heard someone say, "If you waste your money, you can always make it back again. But, if you waste your time, it is gone forever." Well, in this case, "Time IS money!"