By Chris Guertin, EO Minnisota Member and and president of Sport Resource Group.
In 2008 our company, Sport Resource Group, had our best year ever in terms of sales, but a terrible year (by our standards) for profitability. We had been chasing the popular projects that would earn us plenty of media attention, but were short on margin. Additionally, we had fallen victim to many customers who had promised us large purchases if we could just give them a deal on their first purchase from us. After reviewing our year, we decided to make some drastic changes. Namely, we fired 25 percent of our customer base. That’s right – during one of the worst downturns in history, we made a concerted effort to stop chasing a certain type of client and re-focused our efforts on to smaller, more profitable customers. (more…)