The Idea of shrinking services

Seth Godin is a business writer and thinker, and he writes a daily blog. I would encourage everyone to subscribe to it, it is just a kick in the pants much of the time. Here is what he wrote today:

Death spiral!

You've probably seen it. The fish monger sees a decline in business, so they have less money to spend on upkeep and inventory, so they keep the fish a bit longer and don't clean up as often, so of course, business declines and then they have even less money... Eventually, you have an empty, smelly fish store that's out of business.

The doctor has fewer patients so he doesn't invest as much in training or staff and so some other patients choose to leave which means that there are even fewer patients...

The newspaper has fewer advertisers, so they can't invest as much in running stories, so people stop reading it, which means advertisers have less reason to advertise which leaves less money for stories...

As Tom Peters says, "You can't shrink your way to greatness," and yet that's what so many dying businesses try to do. They hunker down and wait for things to get better, but they don't. This isn't a dip, it's a cul de sac. It's over.

Right this minute, you still have some cash, some customers, some momentum... Instead of squandering it in a long, slow, death spiral, do something else. Buy a new platform. Move. Find new products for the customers that still trust you.

Change is a bear, but it's better than death.
*******************************************************************************************

Don't you think this is applicable to our situation at Cascades? We need to help Bill see that we can't shrink our way to success as a development or a country club!

Rick