Why one business
will do better
than another

I thought I would tell you the story of two businesses, Business A and Business B. They're both pretty similar, turnover around that five million dollar mark, shareholders and directors working in the business, both of them have around 15 or 20 staff and although they're in different industries they have to do similar things well for their customers.


So why is it that Business A is really taking off and Business B seems to be treading water? Well I think there's two things, let me explain what they are.


So the first difference is that the Managing Director in Business A is looking forward all the time, they are looking for the new opportunities, for new ways to do business, for new customers, really trying to push the business ahead, where Business B the Managing Director, whose skills are pretty similar to Managing Director of Business A is really head down, on that treadmill doing a lot of the day-to-day operational things.


So that's the first difference, in Business A the Managing Director is looking ahead, where in Business B they're head down, caught up in the day-to-day stuff.


The second difference is in Business A the Managing Director has actually employed someone to come and help do a lot of that operational stuff which frees them up to look ahead for the big picture things.


Business B for a number of reasons, a little bit reluctant to hire someone, happy to do all the tasks themselves, that means though they're not getting the chance to look ahead.


In the short term is there much difference, probably not. the owner or the Managing Director in Business B is definitely feeling under a lot more stress and a lot more pressure because they're having to do a lot of things, but over the longer term the Business A model is going to give them better cut through in the market, they're going to have more opportunities and they're going to be well off or better off in the future.


So a question to always ask ourselves, are we looking ahead and also do we need some resources around to help support us?


Thanks for checking out today's vlog, I hope you got something out of it, and if you have any queries please give me a call on 021 748 142 or fire an email to john@planaconsulting.co.nz