How Lego Focused Their Business On Profitable Parts Of Their Business

As Ben Franklin once said, ‘Beware of little expenses. A small leak will sink a great ship.’ ๐Ÿšข

Ever trodden on a Lego brick in the wee hours? Crikey, that’s a wince-worthy wakeup call, innit? But let’s chinwag about how those tiny torture devices, also known as Lego bricks, completely changed the game for a business on its last legs. I’m yapping about Lego, folks – the very same that kept you busy as a nipper (and occasionally made you howl in pain) ๐Ÿ˜’

Believe it or not, Lego was once on the edge of going belly up. Mind-blowing, right? The company had tried their hand at some ventures that strayed far from their tried-and-true model. They dipped their toes in pretty much everything – theme parks, togs, even video games! Looked brilliant on paper, but in reality, it was like taking a detour from what made Lego, well… Lego. The balance sheet didn’t mince words ๐Ÿ‘ˆ

Then, in 2004, up stepped Jรธrgen Vig Knudstorp. One gander at the finances and he went, “Only 30% of our product line is making any dosh? Blimey!” So he stripped it back to the bare bones๐Ÿฆด

Lego bid cheerio to their theme parks and trimmed their product range by half. They refocused on their bread and butter – those iconic, colourful bricks. They also spotted that their larger, intricate sets were selling like hotcakes. Up the production of those bad boys and flog ’em to not just the ankle-biters, but the big kids (that’s us adults) too ๐Ÿ‘ˆ

And the upshot? A complete turnaround. Lego didn’t just stave off bankruptcy, they tripled their revenue in less than a decade ๐Ÿ’ฐ

If you’re in the business world, you’ll have your fair share of hurdles. From marketing gimmicks to sales tactics, operational changes to number crunching – it can be a right dog’s dinner. But, just like with Lego, you need a clear roadmap – solid, reliable data. Imagine trying to knock up your Lego castle with fuzzy instructions or missing pages. You’d be left with a pile of bricks, right? And your dream castle? Just pie in the sky ๐Ÿช‚

Business is no different. Without accurate info, you’re just taking a punt. Your strategies are all over the shop and your goals stay just that – goals. So, take a leaf out of Lego’s book: don’t fly by the seat of your pants, bank on accurate data. This way, you’re not just piecing together a business, you’re building an empire – brick by blinking brick ๐Ÿ‘ˆ

Disclaimer: Paul Stankiewicz is the owner and principal at Paul Marks & Co Chartered Accountants which is the trading name of Paul Marks Ltd a Limited Company registered in England and Wales (registered number 4487645).This article is designed for the information of readers only and is the opinion of the author only. Readers should not act on any of the information contained in this article without seeking professional advice. Nothing in this article constitutes advice, nor does the transmission, downloading or sending of any information or the Material create any contractual relationship. Links to third party websites are provided as a convenience to the reader, Paul Marks Ltd does not control and is not responsible for any of those websites or their content. Paul Stankiewicz and Paul Marks Ltd accepts no liability or responsibility whatsoever for any loss or damage suffered by any user of the information contained on or accessed through this article or the Material downloaded.