A company that grew its overhead expecting expansion hit a 40% industry downturn and watched revenue drop back to $5 million. To survive, it needs to push revenue up and cut costs at the same time, not one or the other.
So this is building for a company that's growing. You're putting in overhead and stuff like that for new growth and all of those things. And there was no growth. As a matter of fact, the industry is down. The industry is down overall, 40% across the nation. That's data from suppliers. That's data from. Then all of a sudden, it just started dropping, and it continued to drop. And you're back here saying, hey, I'm going to be a. That's called a $5 million company. And when I grow to a $7.5 million company here. And so when we do that, we take on a lot of overhead there, and bam, everything dropped off, and I actually ended up being a $5 million company again, or maybe even worse. And so you start to have that line dropping, but you also, at the same time, have this line rising. So think of that arrow moving that way and this arrow moving this way and everything in between here. Everything in here, that is your profit. And as you can see, those profits were really healthy, really healthy. And now they're starting to squeeze down. What we have to do, we must do. This is not an option if we're going to stay in business as a viable business, is we have to do two things. We have to drive this number back down and we have to lift this number back up. We have to drive our revenue back up to where we want to be as a company, but we absolutely have to drive our cost down.
