I’m working with a magazine CEO who has seen revenues fall 45% over the last five years. Until last year, she didn’t think she had a problem because she cut costs enough to keep profits flat. Then last year, the bottom fell out. Now, the company is at risk of going bankrupt.
While it’s important to keep lean cost structures in our industry, let’s not forget that cost cutting is not a long-term strategy! The only truly long-term growth strategy includes innovation and new product development.
New products are the lifeblood of an organization. If you don’t innovate, you will die. Don’t believe me? Out of the companies that were in the Fortune 500 in 1955, only 61 are still on the list. What are you doing to grow your top-line? [Read more…]