Should you make small incremental improvements to your business or should you always be on the hunt for Moby Dick? A lot of people might say both, and I agree, but if you had to choose one which should you pursue? Does pursuing one distract you from seeing the other?
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I have been working on some projects lately that have really got me thinking about this. Where do I stand? Throw out Captain Ahab. He's only looking for glory and is willing to destroy the ship and lose a limb to boost and protect his ego.
If I chase a million dollar deal, whether it is cost savings, operational improvement, or whatever, but I waste $50k here, $125k there on small projects because I can't be bothered, "I'm going to catch a whale." I may destroy the ship and lose my leg and never catch the whale.
Think on it this way. A house is built brick by brick considering all costs because there is an anticipated sale price. If I'm looking to build and sell a house for $250,000 with a worthwhile margin I can't spend $300,000 on materials and $200,000 on labor. This is exceedingly true if comparable properties in the neighborhood go for $250,000 where a $500,000 home would be unheard of. You have to manage the build and probably install a toilet yourself.
Know any Ahab's?
Tim Symchych
Wednesday, July 16, 2008
I'm going to catch a whale
