What to do when you have recognized you are in a dead loss situation.
Evaluating your purchases to minimize risk of dead loss. Part 4 of 4:
So you’ve done all your homework, evaluated multiple products and made a purchase. None the less, you’ve found yourself in a dead loss situation. Continuing on the path you’re on with this product may not lead to ruin but it will cost you much. You may lose employees, customers and more money if you continue.
The hardest part will be to admit that the investments made in the product, be that monetary or other, is a loss to your business. As I discussed in my other posts in this series, we tend to make a emotional attachment to the equipment we purchase and use. Having an objective view of the situation is what you should strive for. Note that the most successful businesses I’ve spoken to, have multiple people consistently scrutinizing processes, not just purchases. These business don’t rely on departments or managers that say, “that isn’t my position.” In today's businesses all business segments are closely tied to each other and any inefficiencies in one lead to issues in the other segments of the business.
Once you admit that it’s time for a change, you need to start the evaluation process again. Though this can be a more time consuming process, it’s relatively easy because you’ve identified what pain points you have. Look over my previous posts for steps to follow in your evaluation process. Here are the highlights for your evaluation process.
Stay Open to new technology and vendors. This ensures you’re not only getting the best but at the best price.
Understand the product TCO. Think about the entire life-cycle of the product within your business. How easy is it to setup? How easy is it to maintain? Are there any recurring fees? Will it accelerate other parts of the business? Can it envelope future plans you have?
Don’t stay satisfied with getting more of the same. Dramatically improve on performance, cost, ease of use, and footprint of equipment. This will also help in justification of the new purchase.
Starting with these points will get you on the path to selecting the right products for your business. Hopefully this series of posts have helped you think about how you purchase and maintain business equipment.
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Evaluating your purchases to minimize risk of dead loss series:
Part 4: What to do when you have recognized you are in a dead loss situation?