Qualified vs Quantified Problems
Most business owners define problems and solutions that are QUALIFIED but rarely QUANTIFIED thus failing to optimize their profits & value of their business. A QUALIFIED problem is one that a business owner suspects in their head but never puts down on paper. Examples are statements such as: "I should be making more because my sales are higher, but I don't know why". Or "I'm spending plenty on marketing but not sure what return I'm getting for it". Or "I'm profitable but I constantly miss payroll and not sure why". Usually a consultant is brought to address "the problem", and it gets compounded because not only is the problem not QUANTIFIED but so isn't the solution. I have yet to run into a consultant who quantifies their value. That's not to say they don't generate value it just that it's rarely QUANTIFIED & measured.
Let me ask you what sports team would perform better: One that tracks and measures its stats or one that doesn't? The answer is obvious. So why do most business owners fail to model/forecast their business so it can be quantified & measured? Instead choosing to put out fires as they start vs planning so as to prevent them.
When a problem is QUANTIFIED it gets measured so that its solution can be measured. If it's not, how does a business owner prioritize the problems that exist, what resources to use and how much investment should be dedicate to solve them? For that matter, know for sure if the problem is fully resolved?
If a business is modeled and forecasted correctly and then monitored most problems won't rise to the level that inhibits a company to grow. Why? Because the problems will show up in the numbers!