After founding Akasha Crystals in his apartment bedroom in Detroit, Adam Kasha quickly grew it into a $15 million a year company. However, his journey to profitability hasn’t come without its share of pitfalls and challenges.
In October 2002, Adam met a business man from China by the name of Rex Wang. The two quickly clicked, and within 24 hours they were drinking and chatting about their businesses, trade, and the beauty of deciding to do business in China. In the midst of their conversation, Adam was caught off guard when Rex quoted supplier prices. Rex’s quote for black river rocks were the best deal Adam had seen.
Though he hadn’t even known Rex for a day, Adam’s gut instinct was to trust this businessman from China. Within the next two years, the two visited suppliers, warehouses, and were able to quintuple the value and revue of Akasha Crystals. All seemed well, so Adam officially brought Rex into the business.
By 2008, revenue boomed to $10 million. Then things suddenly went downhill. The first disaster happened in 2009, when Adam and Rex’s visions didn’t mesh together. During their tension, a deal between Akasha Crystals and Walmart had been made – but there was no way that Akasha could satisfy Walmart’s large demand for orders. Then the giant retailer began pursuing legal action for damages.
While Rex played a huge role in Akasha’s staggering growth, his business practices were also a large contribution to the struggles that ensured. According to Adam, none of this would have happened had he taken a more logical approach and worked to protect his interests in China. Instead, he trusted his from-the-gut approach to business.
What CFOs Can Learn
While most CFOs may claim they trust intellect over their gut instinct, research shows us otherwise. In fact, it’s estimated that nearly two-thirds of executives only consider one solution instead of listening to other options. While trusting your gut instinct is a valuable asset, not considering the facts can be damaging. To avoid potential pitfalls such as the ones Adam faced:
- Look at decisions from different angles
- Conduct thorough research before coming to a conclusion
Move to institutionalize good decision making practices in your company