Bigger is not always better in your business garden

Size is not everything.

Over my time in owning and managing business across a large number of sectors - big and small, I have fallen into a trap of many business owners that size is everything.

True, a larger business should be in a better position to with stand the ebb and flow of business success, especially in small markets like Tasmania and even Australia, however it does depend on the type of your cost base.

If you have too large a fixed cost base, you are exposing yourself to changes in the business environment that you have no control over.

It is easy to get excited in the good times, see that that extra piece of plant or building will be able to allow an increase in production or output - the good times however do come to an end.

This also includes the manner in which you employ people.

The natural thing is to try to employ people in real jobs, full time with all the benefits, however this is an asset that is also fixed as compared to a variable asset as a part time or casual worker.

The huge increase in casual and part time workers across Australia I feel is due to the wider cyclical nature of the business environment and businesses have to manage this, rather than employers trying to rip off workers.

As an employee who at times had over 120 workers as team members - and truly good employers do see people working with them as team members, you want the best for them, so they will look after the business.

So in the excitement of building a BIG business, many business owners see expansion to be BIG becomes important, rather than the business and personal goals that you had set your self when you started the business.

Back to the garden it is like having a small garden patch to feed your self or a couple of chooks for a few eggs and then planting a couple of acres of peas or carrots because they grew so well in your small patch or suddenly having a couple batches of chickens and you have heaps of eggs to get rid off.

Today, August 21, 2013 there is a report on a Tasmanian company TASSAL who has a huge increase in profit by changing its business from a fish farming business to supply predominately International Market, to ONLY supplying the domestic market.

The company has failed twice before pushing growth and seeing that it could only happen into the International Market - mainly Japan, but only 12 months ago with the huge increase again of the Australian dollar, took the decision to only supply the domestic market.

Changing back to its core of making money for the investors and shareholders, rather than looking to be the worlds largest fish producer has seen this business be successful once again, while other similar business in this sector are struggling on that International stage.

What is success in your garden.

Tony Park
Head Gardener
Business Gardener
www.businessgardener.com.au

Before the Dawn

The Garden
Before the Dawn, is to try to understand those things that you need to do before you start to think of a garden.

• What sort of garden, 
• Where to place it
• How you manage the grow process

Are all STAGE 2 thought processes and are the things that people  focus on when they think of what they need to do first. They think of the process, the management, the vision of the result, before they really look at the first question ;

• Why you want a garden.

Do you want a garden to grow flowers because you love to control fresh flowers, do you want to have your own vegetables to eat or share with people or do you want to have enough to sell and try to make some extra money.

Why not just buy your vegetables from the supermarket or flowers from florists, why muck about with a garden, with weeding, watering, etc... to get a result, when you can just buy what you want so much easier.

 It's the same in business.Why not have a job working with someone, why have the stress and hassle of running a business.

You may be a great electrician, plumber, accountant or whatever, however you need skills to make the business work that is a different skill to being the electrician plumber or accountant.

There needs to be an understanding why you want to be in business before you look at all those things that will make it successful, without this understanding you will never know if you are travelling the right path or even when you have reached the result that you want.

When you climb a mountain, first you need to see and understand the mountain. Understand what you want to do - climb the mountain, find a path, learn how to climb etc... But also to understand what you want to achieve - to stand on the mountain , to be part of a team to get to the mountain, to engage and show others as you climb - its your success and you need to be clear what you want.

All the rest is process, but people tend to just see this process as the most important part and forget what they want to achieve and the final goals they want to achieve.

Without the thought process before the dawn, then inputs like sun, water, soil, seed and whatever will not mean anything and your garden will not grow to achieve the reasons that you started it.

Same with your business, you need to feel why you want to be in business, then the process will be created so you can achieve it.

Tony Park


PS     Its always colder before the dawn but was always the best time for armed forces to attack - same for you to start your journey to create your success. New information coming soon to www.businessgardener.com.au so you can create your future !


PPS   Next Blog is some "learning" opportunities that I have had along the way, for you to learn from.