Dance Business Success Principles

What to do when you get in trouble

It's a rare business that does not get into trouble some time.  No one wants to, but it does happen.

When it happens, the key question is, "What to do now?"

There are many different sorts of answers to that question. I address a couple at this time:

• Save your way out of trouble
• Sell your way out of trouble

But then what?

But then of course, after the big business has done its cutting, it must get back to doing what is required for growth: selling.

Cutting costs is generally simply an interim move in preparing for new selling strategies.

Cutting costs is not growth or success

"Getting out of trouble by cutting costs" is not the same as "growth".

Selling, not saving, is necessary for growth.  And growth is necessary for success, and usually even for survival.

This is of course "obvious".  But many businesses, small and large, sort of deny the obviousness of it because they have not found a way to adequately do it. The need for growth is a monster problem.

Small business must "sell" it's way out of trouble

A small business, such as most social recreational dance businesses, can only sell it's way out of trouble. 

Yes, some costs can perhaps be cut.  But often/usually cutting the cost also means cutting the revenue or cutting the revenue potential.

In small business, since they normally operate fairly lean with little fat, cutting costs means cutting muscle; and thereby reducing the health and the heft of the business instead of improving it.

A small business trying to cut costs to get out of the hole is almost always just digging the hole deeper.

A social recreational dance business trying to cut costs is generally reducing its ability to generate new sales and revenue. But of course in some cases, that is what must be done.

But the first option if at all possible should be to seek to increase revenue, instead of to reduce costs