If you’re an entrepreneur, you’ve spent time in “the red.” You’ve used money, earned or borrowed, and invested into your business. Buy for a dollar. Sell for two. Eventually, you land in “the green.” What happens then?
Some folks buy an Armani suit, slick back their hair with 3 pounds of hair gel, channel their inner Gordon Gekko by proclaiming, “greed is good,” and pocket the cash. However, greed and profit are not the same thing.
What do I mean? Check out this business slice before ethical bankruptcy causes literal bankruptcy.
Click to tweet this: Be careful not to let greed get in the way of profit. @DaveCrenshaw
Video transcript:
Have you ever worked with a company that got too greedy? For instance, Amazon switching its shipping from UPS–which is very reliable–to the less expensive and less reliable USPS; or the local restaurant watering down their soup.
Whenever businesses do this in an attempt to save some money, it often ends up hurting them in the end. Here are three things to avoid with your business:
- Number one is never cut anything that is a profit-generating activity. You don’t make money by saving money. You make money by making wise investments.
- Second, never pay less than a fair wage for your employees. Your employees must feel that they are being compensated at the same level basically the people around them are being paid. Otherwise, you’re going to have a huge problem with turnout.
- And lastly, never diminish the customer experience. Your customers have come to your business and they’ve experienced something, and they keep coming back with the expectation that that will continue.
So my question for you is simple, name one company that you’ve worked with that got a little bit too greedy.
Also, if you have any questions you’d like me to answer in a future video, ask that below as well.
Thanks for watching and remember—greed isn’t always good.
Join the conversation: Name one company that you’ve worked with that got a little bit too greedy.
I respond to every question and comment. So, please, join the conversation!