I know, I know  … you were expecting something about food.  Well … I’m a food entrepreneur.  Feel any better?  Besides, I’ve just got to get this off my chest.

I was asked to sit in on a meeting yesterday with a man whose business is struggling.  His particular business is in an industry that requires the customer to pay a monthly service fee.  He recently lowered all of his prices in the hopes of attracting more customers.  When I asked how he had decided what they were going to charge  he shared that they had simply picked a number lower than the competitors.   Hmmmm…..   He then explained that his competitor is a huge national corporation.   Another hmmmm….  As we sat and visited, this business owner didn’t seem to understand that his competitor could make less per sale because their sales are many, many multiples of this man’s small, one city company.   If the big company only makes a couple of dollars per sale it doesn’t really matter because a little bit times a big number is a bigger number.   In the small business owners situation, a number that almost doesn’t even cover his costs times a small number of monthly sales equals a proportionally small final number.   My heart felt bad for the man, but how do you tactfully say, “You have no idea what you’re doing.”?   I just haven’t found the correct formula for that.  Any ideas?

To be successful in business, do I dare say it … to be successful in life one must count the cost.  You hear it over and over, but how many of us actually do it?  I’ve had my Jerry Springer moments where I shake my head and wonder how-the-who did I ever get here.  Of those who say that they have figured out the “cost” of a certain activity, how many actually count all of the costs?  The business owner above hasn’t … his number of clients has increased – duh! … but he is still losing money.   Another duh! 

What activity are you in where you haven’t fully counted the costs?  A failing business?  failing relationship? activities that seem to be sucking you dry?  Count the costs!   And if you find that the scale is not in the activities favor and you are unable to come up with any method of turning it around … Stop!