Mike AndesFounder, Augusta Lawn Care and Homeworks · Founder of Homeworks and Augusta Lawn Care

Lose the contract... Lose your Business.

22 Dec 2024 · 0 min

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0:03

YouTube video (speaker: Mike Andes) recounting an anecdote about a snow-plowing business in Ontario that collapsed financially after losing key customers. The clip illustrates the danger of fixed/high operational costs (expensive equipment, trucks) when revenue falls — ‘‘million to four hundred thousand’’ — and frames a cautionary lesson for small-business owners about scaling costs to sustainable demand.

No sense in having a million dollar business if you spend 950 to get there.
I flew out to a business owner in Ontario and he was doing massive snow plowing jobs. But all of a sudden he lost one or two customers and that business went from a million to four hundred thousand. But he stuck with two hundred thousand dollar loader, a super fancy excavator and all sorts of trucks that were required for the million dollar business.