The Revenue Paradox

If you haven't seen the Insurance Journal article Bad Economy Not Impacting Essential Insurance Coverages it's worth looking at if only as a bit of encouraging news amid all the bad.

The results of this survey shouldn't be surprising - and I'll bet a similar survey of businesses would produce similar results. It highlights what I call the "Revenue Paradox." You must be willing to reduce revenue to retain accounts. And, in fact, you must expend resources to reduce revenue to retain accounts. Ouch!

Managing expenses is more important than ever. There just isn't any room for waste. We're working on tools to help with expense review and reduction as well as a rolling cash flow tool to highlight critical issues before they get to be disastrous.

The good news continues to be, if you manage your business well in tough times, as things get better, you have a distinct advantage over companies that think business as usual is good enough.