Though there are seemingly endless ways to improve your profitability and cash flow, most relate to either growing revenue or cutting costs and so we asked some very wise business owners and creatives to talk to us about how they think about which matter more.
Patrick Bolanos
When we began seeing the increase in demand after the pandemic, we focused all of our energy on growth. This meant getting a new facility, hiring more people, investing in more machinery etc. It was important to sustain the growth. Then it shifted, the economy slowed, interest rates increased, financing our clients became more difficult. Our energy shifted to cutting costs. So we have been in 2 different economic scenarios less than 24 months apart. This question is important because knowing what we know now, I would 1000% always focus on costs without sacrificing quality or service first and then figure out if there are growth opportunities. This does not mean that we would eliminate growth all together but we would allocate our energy to controlling our cost, increasing our profits to fund a sustainable level of growth. Read more>>
Omega Smalls
That is a great question! To begin, I’m aware of the importance of growing overall revenue versus focusing on cutting cost & I’m an advocate for increasing sales to afford business costs. However, I am a very strong advocate for fluency, consolidation, & efficiency. Meaning, I believe the tools, software, & databases used to run a business should be well below a companies financial means & allow the business to run in a minimalistic yet efficient way. Nonetheless, this is my general opinion. Everyone has unique ways they like to run their business. Read more>>
Sandra Huerta
I like to focus more on growing my revenue, I believe there is always a possibility to grow even more when you seek for new ways, Like networking, being more involved in community, ask for advice from other business owners, be open to ideas, Open your eyes wide open for what can work for you, And always invest smarter. Read more>>