Las Vegas Small Business Profit Growth Management
Small Business Solutions for Growing Profit are described here!
PROFIT GROWTH : YOU COULD BE GOING OUT OF BUSINESS WHILE STILL MAKING PROFIT! How could this be possible, you say?
To make my point, let’s look at Trucking Industry history where many Small Businesses entered the market over last 40 years but only few grew to be Mega Businesses.
Three sentences for getting Success – 1. Know more than others 2. Work harder and smarter than others and 3. Expect more than others – Shakespeare
- Your Trucking Company was started many years ago as a Small Business. At that time trucking industry accepted only “Truckload” shipment to transport from Point A to Point B. Over time Your Trucking Company kept lowering the unit cost and kept on making profit. But their business did not change from Truckload shipping.
- ABC Trucking Co., a Small New Business, saw the hidden growing market need for shipping “LTL – Less than Truckload”. So, they became known for shipping LTL. Their business grew like crazy. As a result, their profit margin and unit cost decreased much faster than Your Trucking Co. unit cost.
- Then enters a New Trucking Company – XYZ Trucking Co. They saw emerging market need for small packages to be shipped all over the country. Because of their very innovative surface and air shipping management processes, their unit cost dropped way below ABC Trucking Co. unit cost. Their business grew like a wild fire.
- Finally enters UPS Trucking Co. – a Small New Business. They realized that market is in dire need for one to two day parcel and small package delivery. By integrating Surface and Air transportation, they created innovative “Hub and Spoke” network for delivering packages and letters in one or two days. Demand went sky high. Unit cost dropped like a falling star.
As shown in the Graph, UNIT COST difference grew so big that Small Businesses like Your Trucking Co. and ABC trucking Co., while still making profit, could not catch up to extremely low Profit Margin and unit cost of XYZ and UPS Trucking Companies. Most of them went out of business or they were gobbled up by companies like XYZ and UPS.
Your Small Businesses now could be in one of these three status:
- Supremacy: If Small Businesses could get in the Leadership position and maintain that position over long time, they will end up being a Mega Company.
- Survival: Small Businesses could barely survive for a while if they have a good business management team. But if the business management team is not visionary, Small Business will have tough time surviving.
- Sayonara: Company like Your Trucking Co., will go out of business while making profit or will be bought out by a Leadership Company who wants to quickly expand their business in new geographical territories.
Destiny is a matter of Choice, not Chance – Unknown
For any Small Business, it is possible to go from Sayonara status to Supremacy status or from Survival Status to Supremacy Status.