Your generosity might bankrupt your business

I went to visit the Malaysian Autoshow, and bumped into an old industry friend.

In between catching up on the latest industry gossip, and reminiscing on some of the dumb shit we did in the past, our conversation briefly touched about the 2008 American auto crisis.

When I was younger, I used to think, wah, this union workers all damn syok leh:  

• People working at GM, Ford, and Chrysler plants were getting USD 70 per hour (including benefits).

• Laid off also not scared ... union ensured that they still received 95% of their take-home pay and benefits.

• Meanwhile, the fellas at Toyota were paid USD 10-20 less per hour... and still building better cars.

But here's the real kicker: The American big three were already selling their cars for roughly USD 2,500 LESS than Japanese competitors. Even with lower prices, they couldn't compete.

So, the Americans were making less money per car, paying more money to each worker, and paying somemore money to ding dongs who were not working.

As a business owner, these kind of numbers make my legs shake.

Here's the brutal truth about business that the American auto crisis taught us:

No company is "too big to fail" when their running costs don't match reality.

Even giants like GM, Ford, and Chrysler - companies that dominated for decades - found themselves one crisis away from collapse. Why? Because they were carrying unrealistic fixed costs in the name of being "generous employers."

The irony? In trying to be too generous, they nearly lost the ability to pay their people anything at all.

I see this same pattern in smaller businesses today. I myself also was trying to be "good boss" by paying above-market salaries before my business model could sustain it.

I still believe in paying people well. But I've since learned that my first duty as a business owner is to be profitable enough to pay people sustainably.

Overpaying when you're not making enough is like trying to be a hero while drowning. You'll end up needing rescue yourself.

Question you may want to ask is, are you sure your business is getting enough profits to sustainably pay your people their current rates?

I've created an A.I. consultant that helps you:  

• Calculate the true worth of each role in your business

• Determine if your current trajectory can support your payroll

• Identify when you can sustainably increase wages

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Click here to get this consultant by your side today: https://www.paypal.com/ncp/payment/H3SJU8NKKM3BU

Always cheering you on,

Kon

P.S. If you're worried about whether you're overpaying your staff, this consultant will give you the clarity you need. Don't wait until a crisis forces hard decisions.