The Perils of All Stores in the Black!（Surplus）
Are loss-making stores really evil?
As you develop your business, you are bound to encounter loss-making stores. Management's response to this situation varies.
They may set a period of time during which they close the stores instantly, or they may manage the stores idly without a sense of crisis because the profitable stores compensate for the loss of the deficit.
Various.
My view is this.
The best managers are the ones who are assigned to loss-making stores, with a solid budget and a variety of projects and challenges. Give them the greatest praise and rewards for turning a profit.
This is because they are building the know-how necessary for the company's growth. When you run a company, there are bound to be loss-making stores.
Salaried store managers are happy when they are assigned to profitable stores. Store managers who want to become independent are happy when they are assigned to loss-making stores.
In physical terms, to make a surplus is to maintain blood volume in the body, to close a deficit store is to stop the bleeding, and to turn a deficit store into a surplus is to go out and get more and more food to make blood.
This is the most important thing!
Also, often there is no sense of crisis in a profitable store. There may be a sense of crisis in comparison with the budget, but....
Efforts and improvements are not generated; they are only generated in loss-making stores.
The difference is about the difference between Maslow's "survival needs" and "social needs.
It is always better to have about 3% of all stores in the red. It is there that the best managers will continue to create the know-how for the future.
Enter through the narrow gate!
Hard work is food for thought. This effort is absolutely necessary for the company's growth.
Without innovation and effort, a strong corporate entity will not be born.
And when all the stores become profitable, there will surely be another loss-making store born from it. In the end, management is a cycle. And it grows stronger.
A company that rides the environment and grows without hard work and effort is weak. This is because they cannot make improvements on their own.
A company with too strong a sales force is weak in terms of product strength. Because they can sell anything with their sales force. Companies with too strong a product line have weak sales forces. Companies with too strong a sales force are weak in sales, because their products are so good that they can sell them without any effort.
A company in a regional city that we support does not develop new business models in the city center. First, they develop in a local city with a small population.
This is a test to see if the new type of business will attract and satisfy customers without sales. Then, they will conduct various marketing activities in the sparsely populated cities, while monitoring the situation, and develop this into know-how. We will make it into something that can be used throughout the country. This is the gift of management.
There are many ways of thinking about how to make a company strong, but for your information.
Assentia Holdings Akira
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