“It does not matter how slowly you go so long as you do not stop.” – Confucius
We all know big results come from small changes, applied consistently over time.
But have you ever considered the opposite? That big failures come from small failures, endured consistently over time.
Last week Tim Thompson and I were walking an underpaid studio owner through the concept of The Splits, a.k.a. how strong firms “split” their revenues between direct (project) costs and indirect (business) costs.
The owner wasn’t convinced:
“On a $50K budget, if our producer lowers our Splits by 8% that will take another $4K from the project and give it to the business. Sure, we can do that… but it’ll be difficult. I’m not sure it’s worth it.”
Right. On one project. I was about to bring up the definition of insanity but the sound of a coin dropping in the slot stopped me as the owner had a realization:
“OK hold on just a sec…
If we do that for every project this year – knowing we’re going to do about $8 million in revenue – that would add up to $640,000…
Right?”
Bingo.
Keep creating the future,
Joel
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