Escalation of Commitment - Don't be Afraid to Start Again.

Start again.

Easier said than done.

I was painting a room in my house and the colour was somewhere between mustard and green pea baby food.

It had looked ok on the 2" paint chip, but was not looking so good on the wall.

However...given the 2 hours of labour already invested and the investment in the paint, I convinced myself that it looked ok.

My wife in a moment of pity also agreed that it looked ok and so I invested 5 more hours in painting the entire room.

The Alarm Has Sounded. You Need to Cut Costs.

When a business is in trouble and needs to cut costs, careful consideration is important. Often times, good managers use short term thinking that can cut a budget's nose but spite a business’s face. Many business owners get the cutting knife and do more of a hack job then applying a sense of purpose and goals based strategy to the cuts.

There is no one magic solution to easily reducing costs and if that were the case, it would have been obvious and performed already.

Here are some practical tips for cost cutting without creating massive disruption in your business:

Eggs, Baskets and Economic Diversity

Rachel Mendleson has put together an excellent article for the Huffington Post.

Of note is Canada's shift towards oil, gas and mining as a key driver of the economy.

The chart below (via Huffington) shows the decline of manufacturing as a percent of GDP and the increase of the natural resource sector over an 11 year period.

So is this a bad thing?

Too many eggs in one basket?

Doom and gloom?

No.

Business is simply going where Business goes.

As the US continues it's economic sputter, China has become a source of real opportunity.

Working with private business across the world, we see this situation Canada faces reflected in individual businesses again and again.  Do I follow the money trail?  Do I stay with what has brought us this far?

The answer is usually a diversified approach.

Completely abandoning a product or even a strategic direction may make sense in some cases, but many times a mixed approach of retaining a company's history, customer base and core while pursuing a new opportunity is the best recipe.

To read more about Canada's shifting direction read the full article from the Huffinton Post here.

To analyze your own business strength take the Wardell Business Strength Test. (free, online and private)

Sharing Wardell Insights Through Our New Blog

Welcome to the Wardell Blog. This area of our site represents our ongoing mission to share our insights and ideas with the business community. This blog will feature posts relating to our Wardell Program, new research and management techniques, insights into business management and leadership  and guest posts from our partners.

Our work at Wardell has always been focused on helping you do your best. Our mission statement is something we live by.

Wardell Professional Development is a progressive organization dedicated to helping people achieve their entrepreneurial dreams.

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“Wardell has helped me systemize my business so I can travel with my family often and live the life I’ve always dreamed of.”

— Brad Haima, Founder, Circle Graphics

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