I have been focusing on understanding how to grow SME businesses over the last decade.
I have found that growing a business is like growing a plant. For a plant to grow you need to give it water. The growth is the output and the water the input.
In business, revenue is output, and expenses are inputs. When business and the economy gets tough, SME businesses very often, start cutting expenses, aka inputs.
Cutting costs can only make sense if you have to much of it. A plant can also be over-watered and then drown. If you are however efficient with your costs, cutting it can have devastating effects. Giving to little water to a plant will slow down growth and may even cause it to die.
In my experience you cannot have outputs without inputs. Expenses are key to generating revenue.
As management our job is to put efficient inputs (expenses) in place, so that our outputs (revenue) can grow and flourish.
Mr Isaac Newton you are brilliant…..your theory even works in business.
