Are you elastic enough? Don’t snap in a crisis! Listen to this episode of #70secondCEO with Carl Gould.
Read full transcript:
Hi Everyone, Carl Gould here your #70secondCEO, just over a minute of investment per day for a lifetime of results.
You know crises, these are like any other external marketplace or otherwise pressure, like legislative or you know health or what am I trying to say, weather, event. These are external pressures and our business has to be ready to manage any external pressures. And so, you know what leads us into a crisis is we don’t have enough financial cushion or buying power, you know, we don’t have enough cash flow. We don’t have cash reserves. We don’t have enough buying power or lines of credit, funding to get us through six months of a storm. Whatever that means, right. When I say storm meaning six months of down time or disruption. You know, that’s one. The other thing is we might not have a strong enough understanding of what our client wants and we might not have built into our model enough price elasticity meaning the ability to charge premiums with our clients that gives us enough gross margin. So if we have to add some inventory and store it or if you want to put some people on overtime to service our customers, we don’t have the margin built in, so as soon as the world goes upside down a little bit, we’re so our business model so stressed out and running so close to the margin that we don’t have a choice but to participate in the crisis.
Like and follow this podcast so you can learn more. My name is Carl Gould and this has been your #70secondCEO.