Is Busines Ever Usual?

So, earlier this year, we celebrated the start of the 4th year of operations for Rutledge Consulting Group. It was quite an eventful year for the business. We experienced significant spurts of growth in the Summer, followed by several clients going by the wayside in the Fall. The downturn in the economy was to blame.

It was about one year ago, that Rutledge Consulting Group decided to find digs of our own. We had been sharing an office with a small graphic design shop - but we have obviously outgrown our space and it was clear our businesses were headed in different directions. We found an inexpensive space downtown Salt Lake that allowed for month-to-month rent. We were several flights up in the old McIntyre Building overlooking the Downtown City Creek Development. Other than the excitement of watching 5+ concrete trucks pour concrete & dozens of tiny construction workers run around & pour floor after floor of parking structure, it was good temporary location - but bad long-term fix.

After my wife & I bought a house in Holladay - I found a great office space in downtown Holladay, just 0.8 miles from our house. I walk as often as I can & love it.

Being mid-way through our 4th year, I have been thinking of a few lessons.

BEING DIVERSIFIED IS GOOD When some clients went away, we had enough business to maintain, without too much pain. At one point I thought, if I were employed by this business, I would have just been laid off. It was having a diverse mix of clients that helped us sustain through this brief period of contraction.

Additionally our approach of working with talented contractors was a positive as well, because we could more easily trim back those monthly budgets - it's a great system that allows us to more easily ebb & flow with the market conditions.

GROWTH IS GOOD - BUT ORGANIC GROWTH IS TOUGH We experienced significant growth in 2008 - doubling our revenue & client base. But, I've always heard it - and now have experienced it. Organic growth is tough. You have to be very thoughtful of your decisions & only make the move to add additional resources (liabilities) when the time is right. Otherwise, cash flow can become an issue. I know just enough to be dangerous & am pretty conservative with finance. It's the classic Chicken or Egg dilemma. How do I get the new business without the resources? Well, I'd hate to bring on someone I cannot afford, and make a big bet that later leads to disaster. Company's deal with this issue daily, but as a small business the stakes are much higher.

As we're looking ahead, the economy is stabilizing and confidence is growing. The demand to perform is very high & I feel like we're positioned to do this. Sometimes you have to retract to hit that next big growth spurt. We're ready.