Friday, February 24, 2012

What Caused the Collapse of Mayan Civilization?

Subtitled, why your business should dig a well.
I just read an article about what caused the Mayan civilization to collapse. While there may have been many additional reasons, the main one discussed in this article was climate change and lack of water.  

Due to the lack of rivers in the Yucatan, the Mayan relied on the seasonal rainfall to refill their fresh water storage. While these reductions amounted to only 25 to 40 percent in annual rainfall, they were large enough for evaporation to become dominant over rainfall.

Let’s just replace the words water and rainfall with money and cash flow. Are you too dependent on cash flow from one particular segment of your business? Would that 25 to 40 percent cut cause your extinction?

The rain of money that comes from cloud bursts are great, however you have to have a drought proof source as well. Grandma might have said don’t put all your eggs in one basket.

How does this fit with your business philosophy? Do you approach your market in a narrow focused vertical, gaining deep penetration, or a broad based approach doing a little of everything? There are ways to create different revenue streams in both of these models. Find recurring revenue, one time sales, and services revenue across all your business divisions.

So while the rain is falling, you may want to dig a well.

No comments:

Post a Comment