I love the use of analogies. One of the prime examples I use is a owner of a contracting company as being the captain of a ship. As the leader you may find yourself heading towards “stormy business weather.” This storm is approaching as your sales revenue is lower than your overhead, field labor and material costs can substantiate. When this happens, you start to take on water. (Go into debt) Soon the whole ship is in danger of sinking.
When you finally wind up in the worst part of the storm the telltale signs are all around you as the captain. The rain of phone calls from vendors looking to collect on what you owe or the lightning of your having to consider a loan, line of credit or even take money out of your own pocket, just to make payroll this week are just a few of the signs that your ship is indeed in trouble. Continue reading “Are You An Engine Or An Anchor?”