Loss or Investment? Does your business suffer when you need to pay for errors?

Having a company is not easy, it takes a lot of care to make everything perfectly well done. Manage finances, people and also know how to deal with unforeseen events, which we know, sometimes happens!

The way you deal with the unforeseen circumstances will make all the difference in your company, as we know that in one of these situations the company cannot be bankrupt.

Do you know that product that was sold from a batch with problems that you could not imagine? or that service that for some reason gave trouble and you had to act? These are losses that you will deal with, and the big question is, how?

Many of these losses are due to the lack of experience of all involved and so face to face may seem to be considered detrimental, but sometimes evaluating well can be characterized as an investment.

In a company, it is interesting that in planning you have a spare balance for these eventual problems, 5% of all your billing is already enough because this should participate in the cost structure of your service or the products you sell.

This year, I got some experiences that I consider an investment, and I'll share with you:

Lack of Scope Notion

In the area of technology and service, there are many things that we can not predict, such as differences in scope. Technology companies that do not follow a scope or follow too strictly tend to have problems as they end up hurting not only the company as well as the customer as well. In other words, if it is not malleable, you may lose the customer, but if it is too malleable you take the damage for yourself.

In one of the projects that occurred this year, I happened to be too malleable (those who know me know that I love helping others). The project was very big and I was wanting to do everything correctly so as not to damage the partner company or the name of who indicated the project. That way, I assumed a number of errors that were not necessarily part of our service and this made project delivery much slower because it did not follow a scope, and in this case, if the deadline is higher than planned, the cost is well bigger.

In the end, it worked well for the partner's defense and the nomination, but I ended up hurting my company. In this situation I learned that scopes were born to protect everyone involved in the project, that old story that any change will change the scope requested is the plain truth.

So, despite the loss, it was a great investment in future projects because this kind of situation will not happen anymore.

Investments that did not produce results

During the year we invested a lot in people, we hired them to teach them because we believe in that phrase "to have the experience you have to have an opportunity first". But only 5% were successful, I learned that it is worth teaching but for those who have a lot of desire to learn.

Willingness to help others too much

I helped and helped a lot of people, but when you do it too much it impacts like an injury. What did I learn? That I really prefer to take losses than stop my life mission.

Lack of experience in contracts

All contracts must have a "risk" area. When you are too small you end up not seeing risks, after all everything is an opportunity. But when you start to grow, everything is risky and I did not anticipate it and had to pay.

Learning is expensive, so everything we did this year had a high cost on mistakes, whether with services, with people or negotiations. Everything you do to learn has the good side that in the future you will have the knowledge to go through similar situations dealing better with them.

In the opera summary, be prepared financially, as your company will have to pay to learn, but seeing the positive side of it will do you good.

So, did you also learn from your mistakes this year? Talk to us and let's talk!

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