The EntreLeadership Podcast We Made $1.2 Million, But Took Home Nothing
6 snips
Aug 4, 2025 A business owner grapples with the challenges of running a niche antique car parts business, struggling with low profit margins. Insights are shared on transitioning from inventory management to liquidating excess stock for better profits. The discussion also dives into complex employee compensation models, balancing salaries and commissions to align motivation with revenue. Additionally, the sensitive topic of demoting underperforming staff is handled with care, emphasizing empathy while navigating growth strategies for businesses facing stagnation.
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Stop Buying and Sell Inventory
- Stop buying more inventory if you already have a large, unprofitable stockpile.
- Focus on selling existing inventory to improve profits and value your business properly.
Demote with Dignity and Apology
- Apologize and take responsibility when demoting an employee to preserve their dignity.
- Present the move as a reversal, emphasizing their strengths and offering a goodwill bonus if appropriate.
Scale Sales with Consistent Growth
- To increase revenue above $1 million, keep advertising consistently and hire new crews before current crews reach full capacity.
- Transition from fieldwork to leadership to scale and solve higher-level problems.
