Our friends at Revitalization Partners share insightful messages that help businesses make the right decisions. Below are excerpts from two of their recent newsletters, describing business performance and competition. At Juniper Capital, we are committed to sharing valuable business advice and maintaining enduring business relationships through trustworthy private money loans. Let us know your thoughts on our blogs, so we can continue to provide you with quality information:
Is Your Business Failing? A recent study by the Brookings Institute revealed that U.S. businesses are failing faster than they are being created. The study examined the rate of business creation compared with business failures from 1978 through 2011.
According to the study, firms are dissolving at the highest rate since the late 70’s. In 2008, at the beginning of “The Great Recession,” businesses began dissolving faster than they were being created. This trend continued and, in fact, accelerated through 2011. While the economy has certainly improved since the study, business owners can still take measures to make sure they are not joining the ranks of those that fail.
Business owners can protect their businesses with a range of precautionary measures, including understanding the need to anticipate change, having a “Plan B” if your current business plan is not working, understanding the early warning signs of business decline, and regularly planning and managing cash flow. No company is invulnerable to oversight, regardless of whether a company is family-owned, publicly owned, funded by venture capital or private equity. It is the responsibility of the CEO and the board of directors to proactively manage the business and make course corrections as frequently as required. RevitalizationPartners can assist in securing your business in many ways.
And, what about competition? Haven’t we all looked at our businesses and thought: “Wouldn’t it be great to not have any competition?” Competition effects pricing, level of service, and customer satisfaction. Or does it? A review of disliked U.S. companies and their customer service indicates that while we dislike doing business with these companies, we are often forced into it.
Comcast, for instance, is the lowest rated ISP nationwide, the second lowest rated phone provider, and the third lowest rated telephone service provider. So, why do we do business with them? It’s simple. There is often no choice. If we want TV or Internet, it’s Comcast or nothing. Regardless of how poor the service is or how exorbitant the cost, we’re stuck with them. If there was competition, many people would switch in a heartbeat. But there isn’t!
And, of course, there is Bank of America, which ranks third nationally on the list of most disliked companies and is currently negotiating a twelve billion dollar fine for home loan fraud on top of a previous $6 billion fine. Yet, most of us have no choice of where our home mortgage is sent to be processed. For the consumer, there are no choices, and thus no impetus for better customer service.
As an organization that specializes in re-engineering companies, RevitalizationPartners recognizes solutions for poor levels of customer service. But, until consumers are willing to reward poor customer service with poor bottom-line performance and declining stock prices, these companies won’t even believe they have a problem. The solution to poor customer service is in our mirrors. And, so far, it just stares back at us.
Contact Juniper Capital to learn more about quality hard money loans in Washington, Oregon, and Idaho. We strive to help you reach your real estate investment goals.