When confronted with huge debt payments, a legal case, and dwindling profits, Richard Branson’s Virgin Records was faced with a cash crisis.
In reflecting on his crisis, he said that there are two ways to deal with such a situation:
- Trim the fat. Shutter the windows. Close the back door. Let some people go. Cut expenses and play to the level that’s just below your current level. Or...
- Expand. Hire new business. Go into new territories. Build systems to handle new clients, sales, and territories. Hustle and find ways to grow.
The best way to deal with a cash crisis is to expand. You can always trim the fat and run things at a smaller level. But where’s the fun and growth in that?
I can hear many of you saying, there’s no business available! Easy for you to say expand.
The difference here is vision. Is your vision big enough to expand?
If not, you might want to start there.
And, Branson only paid himself 20 pounds a week. For years. Are you willing to make that long term sacrifice?
(photo via david seibold)
Posted on November 2, 2017
by Tim & Tommy filed under