Do you work in a business that delivers high margins? Why not?
We can choose to spend our 70 hour work weeks in small margin businesses or high margin generators. It’s really a matter of choice.
Either way, we’ll be working hard to accomplish goals.
As I watch the evolution of social media and see all the flurry of effort, I can only wonder about the R.O.T. I seriously question the return on time investment in social media as a marketing tool or business venture.
It seems to me there’s a lot of mud being slung upon the wall in hopes that something sticks. This blog is mud. It’s not a business venture but it is certainly a time investment. Someone needs to ask the question, “Does this time investment bring us closer to…or further from our goals?
The notion of penny profit works in the fast food industry because high volume transactions drive more pennies into the till. But because of a soft economy, heavy competition and starving owners, margins have tightened in just about all businesses regardless of volume. We seem to be working harder for less.
Enter the exit strategy. As I spoke to a classroom full of budding entrepreneurs yesterday, I defined an entrepreneur as someone who buys and sells businesses. The focal point of that definition is SELL.
What begins well ends well. I need to begin in an industry that has room for high margins and I need to heed Covey’s advice and have the “end in mind.” I don’t want to buy or operate a business that I cannot sell.
The key to high margins is high need. New and improved still doesn’t work without consumer need. We cannot ignore the driving power of need to create and perhaps sustain a business.
“Find a need and fill it” will always stand as the best marketing advice ever given…all said in less than 140 characters.