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Recognise Your Tipping Point and Take Action before it’s Too Late! 

Read on for our 5 Action Strategies!

Tipping Point, Breaking Point or Boiling Point, terms most likely you have heard. Described by Cambridge Business English Dictionary as, ‘a time during an activity or process when an important decision has to be made or when a situation changes completely’.

This Tipping Point once reached can be the difference between success or failure. To go forward or stop! There is a reaction. One that takes you onto bigger or better things or is the opposite, the equilibrium unbalance causing you, the scales to topple over into a downslide or stagnation.

For Small Business: What does it Mean in Reality?

If you are a Small Business struggling with the current inflationary pressures you may be reaching your tipping point.  For example, how to respond to spiraling costs of supplies, wages and overheads. At what point do you tip over the edge.  Customers are becoming thriftier and more selective in their shopping habits, while still chasing value and quality.

In seeking solutions do you increase your prices and at what point will you tip the balance and lose customers. Alternatively, keep absorbing the costs, reducing and losing your profitability until closure.

Example:

Cafe 1, cup coffee $6 increases to $8 a 33% increase. 

Cafe 2, same cup $6 increases to $6.50 (16% increase), with gradual increases over two rises. i.e.incremental increases to reach the tipping point.

Alternatively, a lump sum increase can the tip point and lose customers.

What is your breaking point? 

What to do!  

Take action by understanding what a Tipping Point is and how to identify it.   

 A Tipping point is the turning point at which a product, brand, or company becomes either highly successful or faces failure.   The ‘scales’ will topple or tip over to positively or negatively! With the latter, reaching a Tipping point at which damage is irreversible or accelerating.

Better to see and heed the warning signs!  

• Profit margins reducing 
• Cashflow challenges
• Sales turndown 
• Customer complaints 
• Supply issues

5 Action Strategies: 

1. Identify the problem. Gather all relevant information. Avoid putting it off.
2. Bring your Team together. Put the issue on the ‘table’ to brainstorm problems and seek solutions.
3. Reach out to your Customers. Be upfront, connecting with honest and open communication. Don't apologise.  
4. Engage a Business professional advisor if needed.
5. Speak with Blackburn Accounting let us help you get on top of your Business matters