An excerpt from my recent podcast with Christina Foxwell, who is a speaker, coach, hope-giver, and straight-talker.
Alex:
Scaling back is a really interesting thing. How do you know it's time to scale back and what are the steps you take in doing that effectively?
Christina:
So if you are running a healthy business, you are looking at your PNL. I am just calling it out, you could be making as much topline as you want but if you are paying a lot of people’s salaries and those people are not able to truly contribute to the growth of the organization... If you're a founder, founders are crazy people, who work crazy hours and know everything. Which means we need time to coach people but our problem is as soon as we would spend time doing that revenue doesn't come in. okay? So it becomes a vicious cycle of throwing people in, hoping to God they will swim, hoping that it will be a return and it becomes really difficult.
And so I think what we have got to be focused on is not topline but profitability, and building cash in our practices and then being able to create enough space and peacefulness to do the work effectively with gravity. And with clarity and purpose. Honestly, if we don't do it that way we are just running on the surface. And it doesn't matter if your topline is a million dollars a year but you are not making any profit.