How important is 8%?

How important is 8%?

  • When the US launched the first Rocket to the Moon, what if they had held back 8% of the launch thrust?
  • How about the next time you take a plane trip, your pilot throttles back 8% just before take-off?
  • Would it be wise if an Olympic Runner slowed down by 8% during the finals?
  • Or, perhaps your bank takes 8% of your bank balance at the end of the year.

Would you be upset if a burglar robbed your house, but only took 8% of your possessions?

Of course you would!

I probably do not need to use any effort to convince you, then, that 8% can make a huge difference.

But, how many business owners or even employees use “the Holidays” to delay decisions or actions that will move their businesses forward?

  • Investing in a new piece of equipment;
  • Hiring a new team member to fill an important gap in their capabilities
  • Bringing in a Consultant and/or a coach to start working on business improvement strategies and tactics.

In essence, that “8%” is 1/12 of the year that people lose when they allow the time between Thanksgiving and New Year’s to be an excuse for inaction.

To really get a sense of what this means, let’s take a fairly small business with just $100,ooo of business and growing at about 10% per year.  If, over the next 5 years, you use the Holidays as a reason to reduce your business focus by just 1/4, one calculation shows a loss of over $43,000 (FORTY-THREE THOUSAND DOLLARS).

That money could be used to:

  •  Hire another administrative assistant to help free up your time
  •  Invest in more marketing to propel your business forward
  • Give to a Charity of your choice
  • Take a few more vacations
  • Save for retirement

Or whatever (you get my point).

Now, I get that many of you want to enjoy the Christmas Season.  As a husband and a father of 2 children, I make time for my children’s events (just got back from my daughter’s Choir Concert).  But, as you celebrate the holidays, remember that this is still 8% of your year..so keep the momentum going!

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Comments

  • Dawn  On December 7, 2011 at 7:17 am

    Great perspective Roger!

  • armchairbusiness  On January 23, 2012 at 5:28 pm

    Great post Roger. Your comments are so very true. Funny, last month I wrote about the benefits of December in the office. Always two sides to every story:)

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