Most of us hear the various figures, data, models, and tendencies passed around in ever before more superior manners that promise new insights and new ways to fantastic business success. However, none of them – absolutely none – of these analysis or “expert” models get at or even speak about what has been, according to my tracking data of my organization over the last 15+ years, the main killer of growth through far the single biggest problem for cash circulation and functions management: the divorce rate. Queensland has highest divorce rate in Australia
The popular statistic concerning the divorce rate is that 50 percent or thereabouts of all marriages will end in divorce. I tend to accept that statistic but what this statistic markers – or what the media fails to survey on – is that there are in very many cases children engaged in these divorces who are themselves signed up for things like interlude classes and other economical activity generators like private school, music lessons, cellphone use, such like and so forth. The real problem then is not merely that divorce happens but that when it occurs, at least 90% of that time period, the two “adult” parties do not conduct amicable process and so the child(ren) are caught in a vortex of uncertainty, as are any and all businesses that interfaced with this family or really children.
Years ago divorce still happened but there seemed to be effective, deliberate efforts to decrease the effect on the children. This is paid for out in our stats because we show clear divorce trends back into the early 1990’s but it is within the last 5 years especially that the trend has gone from “stealth” or “smooth” divorces (wherein our organization would find the divorce but only after it had happened and been settled but suggest while the children of the family had extended their activities, had taken care of a proper focus, and would not appear traumatized) into “nuclear” or “armageddon” cases of divorce where the proceedings are contentious, parents are clearly talking bad about the other person in front of the children because your children switch around and mention these items in class, the little one’s focus gets hazed-out and they become lackadaisical, and the financial structure needed to pay for hobbies like ballet class is totally disrupted resulting in at minimum ongoing bank account balances that are previous due and usually closing up economic failure and the student the need to stop lessons.
What we have determined is that on a year-to-year basis, completely 30% of your client bottom will discontinue. Normally about 40% to 45% development with new clients occurs offset this so our growth trend is still positive, but consider this: of that 30% reduction, at least 75% of it is directly credited to bad divorces. That is staggering. If the divorce rate took place to a more historically normal rate of 20% our year-on-year growth would not be 10%-15% but instead a lot more like 25%. That is a huge difference. The “divorce factor” as we call it up is at least as big a cost as our yearly insurance and power bills plus about 50 percent of our advertising budget combined. What is even worse is that unlike other cost factors which do facilitate business operations, this cost factor is very negative, no positive side results at all come from it. In fact, one could argue that as children are exposed to these “nuclear” divorces and the associated social injury, later in life they turn to be if not more susceptible then at the minimum more acknowledging of this as a normal status which in turn would serve to amplify this already nefarious trend in society leading to further increases in the divorce cost factor for all businesses and organizations.