Many of the decisions you make in the next few weeks and months could have a profound financial effect on your business for the entire year and beyond. Doing nothing differently and not making the potentially big, game-changing decisions your business might need leaves your business vulnerable. It isn't wise to just hope for things to get significantly better without new initiatives. Some rental businesses have been stuck in neutral for far too long.
There are so many opportunities (and options) for growth, efficiency and more profitability. For example, many rental business owners and operators know that their employee compensation system is not much of a real system and that there must be a much more effective way to motivate and retain their employees. Doing nothing to make it better should not be an option. Options need to be investigated and evaluated and then decisions should be made to implement the changes that make the most sense for your company.
Also, be sure to have appropriate analysis done before you make important decisions - and most of the decisions you will be making this year are important. It's too easy to make quick decisions without the benefit of adequate research and analysis. Great decisions require great analysis.
Even though it's said that timing is everything when it comes to making important decisions, it isn’t strictly a question of when to pull the trigger on implementing them, it is if you should implement them at all. In the equipment rental business, with all the possible paths to take, it's easy to be going full speed in the wrong direction.
It's one thing to be a risk-taker using good decision-making techniques, and another to just gamble by placing a sizeable bet on a number on the roulette wheel because of a strong hunch. Dramatically improve your likelihood of success by avoiding the trap of skipping important steps in the decision-making process. It's important to be thorough and methodical. Making a rash decision can wash away the opportunity. This is true no matter how successful and resilient your business has been in the past.
On the other hand, don’t put off making your important decisions too long. Some decisions are fun and easy to make while others are so important or so equal in “pros and cons” that they can be agonizing. So, it's natural to put off making the decision.
The wise decision-maker gathers information from a variety of sources before making the choice to proceed in one direction or another. History is indeed a wonderful teacher and always learning from one’s own mistakes is one of the costliest and most painful ways to learn. A professional rental business consultant can help you to analyze, decide and prioritize.
Be sure to develop reasonable, well-thought-out time tables for making big decisions. Don’t let huge, money-making opportunities stay in decision-making limbo too long.
In summary, the “let’s just wait and see what happens to us” approach to business is rarely the wisest for the health, growth and profitability of one’s business. All of us need to keep reminding ourselves of the importance of being proactive. I believe that many (if not most) independently owned and operated equipment rental businesses are at a critical crossroads. Deciding which road to take that leads most directly to growth and increased profitability should not be made without adequate analysis nor left to chance.
