that is the question for OME right now. And probably a little microcosm of what is going to be a long slow recovery for UK rec economy.
Our head count maxed out in June 2008 and we trimmed back by 2 over the next quarter (sounds a bit cold as these were real life good people) - we then had periods of high activity but also a couple of months when the phones did not ring and we wondered how bad was it going to get...
So we now have had a solid 5 months of growth - an increase in margin on that revenue and some very stressed people including the MD. Also my major concern that when things are busy the new business generation goes v quiet and we concentrate on looking after our current customers (which is 100% how it should be).
So we should recruit at account manager level - yes? freeing up Directors to grow the business.
But...do we want to increase our fixed cost base? do we want to put ourselves in a position that we have to look at numbers again -as the market is very delicate?
I think 1 thing - my fellow directors think something different - i am sure we will make the right decision - as long as we all ending up agreeing with me.
1 comment:
When I asked one of my first bosses why he hadn't grown his successful business further, he replied:
"Because each time you grow you need to put much more effort in for a small return. You're always just chasing turnover, and as you grow so do your costs, reducing your margins"
That was his point of view, I think done right (good rapport with current customers, referral etc.) you don't necessarily need to increase costs that much.
I would bring in support staff and go from there. Just ensure the directors are flexible enough to "return to the floor" to help out if needed.
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