More isn’t necessarily better

A small company I am familiar with has decided to sell a small “division” that is currently making around $20,000 a month in profit. This “division” (it’s not really a division as it’s simply a web site that requires very little maintenance) is run on “autopilot” and other some minor upkeep and monitoring is self sufficient.

The obvious question is why would they sell something that requires very little work, makes $20k a month and has been doing so for years? They don’t need the money (the company is quite profitable), it’s not causing them any problems and it enhances their reputation.

When explaining the reasoning for the sale, one of the owners had a pretty simple explanation. This division doesn’t help their core business, they aren’t able to give the division the time or attention it needs to improve and because of this they feel they are doing an injustice to the division and their customers and someone who has the time to provide the proper attention can do a much better job for themselves and for their customers.

Are there things you are doing in your business that might be profitable but are costing you money when you factor in opportunity costs? Might there be things you are spending time and money on which you could get rid of and allow you to concentrate more on your core business?

It’s something that everyone should take into consideration and worth reviewing on a regular basis

Have a great day!

Lawrence

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