Business in the XXIst Century, Part II

This one is a quick one - but it's pithy.

If you cannot sum up your business idea in a single, simple sentence, it's too complicated.  Corollary = change is not always good, even when it's unavoidable - it should be MANAGED intelligently, never diluting the core business plan.

Practical example:  I have worked for a few companies that could, when I started with them, sum up their entire business plan in a single, clear sentence.  Over time, scope and mission creep began to set in, as the brains of the operations began to expand into other niches. Different niches translated into different requirements, which translated into more overhead and more payroll and people.

One business expanded their way into arrogant extravagance and ultimately bankruptcy, the other one "took it to the next level" which saw payroll expand by a factor of 2.6 and saw it's brand diluted and revenue drop by 10%.

Change has to be managed, especially in the current economic times.  It is going to get more and more expensive to have employees in the future, and the constant / infinite growth paradigm is being shown to be a falsehood, born by a very specific set of non-repeatable factors.

Next up, Loyalty: a two way street...

Crazed American, OUT