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By Marce Rodriguez • June 15, 2018

Cost of NOT taking action in your business (it's more expensive than you think)

The cost of not taking action in your business can have many negative consequences ... what do I mean? Simply by not making decisions and implementing actions, on time, that put an end to our company's problems and / or help us to take our baby (our company) to reach its full potential.

To mention an example, let's get into the following situation: your company is not reaching its sales goals because not enough people are interested and the one that arrives does not seem to be encouraged to buy even if you try to convince them; your company is looking more and more concerned about the numbers ($) and they try to be as cautious as possible in their purchasing and investment decisions. This causes any decision to take even longer than usual ... and believe that any advertising and marketing option are off the list, what's more, they consider it an expense, not an investment ... but have you really put to think about the following ..?

Consider the risk and cost of not taking action:

1. The time:

At this point there are 2 very important things that you have to consider,

  • Do you already have clear how long your company is suffering this problem? Even if you do not believe it, this is a point that companies do not always consider and, without knowing it in a "conscientious" way, sometimes have months in a role of "I decide not to take action". So sit down with your partners (or any decision maker in your company), and patiently analyze all the symptoms that have arisen until they get to the root of everything. This will help them to know if the problem is really the one that they think it is, and in the same way, it will help them start to trace their plan of action.
  • How much longer can they survive with this problem? This is SUPER important! if you do not analyze in time what is the real problem that your company is suffering, the numbers and all the consequences that this entails, you may find yourself very late for how long you can take it without doing anything about it. Remember that "a prolonged flu can mean a bigger problem", so treat any abnormal symptoms in your company before it's too late ... remember that the cost of not taking action can be very huge.

2. Not everything is about money. The affected: (moral, satisfaction, competition)

Not everything is about money, people play a very important role in companies and everything that is lived in them; so you should stop to think seriously about:

  • The satisfaction of your customers: the fact that your team is somewhat distracted by the problem they live in the company, can be reflected in the satisfaction of your customers. They should be 100% focused on their work, and not only that, but also motivated to ensure that everything goes perfectly. They can not lose sight of the fact that an essential piece is, and will be, the clients; and if they stop receiving good attention and start to feel dissatisfied, at the end of the day your problems will only get worse, because apart from not having new clients, you will lose the ones you already had.
  • The moral of your staff and partners: as humans we tend to discourage ourselves when obstacles arise, and this is reflected in the performance of our tasks, we are more distracted, other tasks do not usually go as well as they used to, etc ... We must detect quickly when this starts happening in our company, and take action as quickly as possible; you must remember that every action triggers a reaction, so you better be positive ...
  • Competition stalking: have you heard that "the business world is full of sharks"? For something they say ... and is that as soon as our weaknesses begin to become visible to the world, there will always be someone who wants to take advantage of this (sad, but true). So I reiterate, the fact of not taking action only aggravates the situation making you vulnerable to your competition.

3. Money:

And well ... at the end of the day what companies are looking for is making money, right? The cost of not taking action can literally be money ... have you thought of ...

  • ... how much it is costing you? Have you seen all the money that is leaking? Maybe you had to hire new staff because the previous one was demotivated to the point that you had to leave the company (or you had to let it go); maybe you have to pay to be able to "patch the leaks"; maybe you invested in spectacular as a desperate measure when in reality your problem is that you are not focusing on your market ... I do not know, there can be many expenses that a problem can entail, but you really must analyze it seriously beyond what you can see on the surface, or you can repent when you discover, late, the cost of not taking action.
  • ... how much are you losing from winning by not taking action? The opportunity cost is something that companies do not always stop to think about. Imagine this situation: not enough people interested in your business and your sales are low; if you implement a strategy of attracting prospects with a Microsite (Landing Page) with a $1000.00 MX budget, you could attract between 200 and 600 new prospects in a month (depending on the turn of your company), and you will be able to close the minus 5% of these in the month, how much are you not winning by not investing in attraction strategies?! .. and how this one could give you more examples, but I think you got the point. 

 

In conclusion, you have to deeply analyze what is the root of the problem that your company is experiencing, I remember that not always the obvious is reality. The fact that you lack money in your company does not mean that "saving" is the solution. The cost of not taking action can mean the death of your company, do not take a risk so high and make sure you are doing everything in your hands to take it to its full potential.