Why Are You Waiting?

1375 Words3 Pages

Why are you waiting?

During the past several months I have been done several sales presentations to organizations about the services my company, Knowledge Capital Advisors, can offer them. While they all agree we have a compelling story, and our services would help them enormously, they all stop short of signing on the “dotted line”. The mentality in today’s economy is that companies are only willing to invest in services and products that will become revenue generators for them. Companies are not willing to spend money on services or products they perceive to be an expense – even if those products and services have a proven ROI. In today’s world, companies are only investing in products that will enhance their top line growth, while at the same time they are cutting expenses to achieve bottom line growth. Unfortunately, you can’t save your way to prosperity.

From a sales perspective, I found it frustrating that companies wouldn’t spend money for products and services that would increase their bottom line by giving them more effective and efficient processes. But as I thought about it, my perspective on their reluctance to spend on these services went from frustrating to perplexing. I couldn’t understand why they wouldn’t invest in something that would increase their productivity and margins.

Then it dawned on me - companies are not interested in putting forth a concentrated effort that will give them more effective and efficient processes. While they are willing to do the “easy” stuff, like cut hours, reduce marketing costs, and stop investing in new equipment; they are very reluctant to invest time and energy in making fundamental changes to their workflow and processes that could make them more competitive and efficient. And...

... middle of paper ...

... The article’s premise is that to sustain a healthy economy there needs to be a certain amount of money flowing through the system, and the only ways to achieve the right amount of money flow is by moving money faster (velocity) or increasing the money supply (printing it). The article’s premise is that today’s poorly performing economy is a function of the lack of velocity of money and not its supply. If we don’t increase the velocity of money then we need to print more of it – which will lead to inflation. The article was advocating increasing the velocity of money through consumer and especially through business spending.

So now it’s the perfect time for a company to invest in its future by transforming itself; while many think it’s a contrarian maneuver to invest during a down economy, I think it’s the smart, forward looking thing to do.

What do you think?

Open Document