Top Ten Ways to Increase Your Profitability
1) Go back to basics.
Take a couple of steps back and address the fundamental facts or principles of your business. Going back to basics can mean cleaning the slate and focusing on basic elements that create success.
2) Come from a place of Integrity.
As the saying goes " Honesty is the best policy." Base all your decisions and actions on integrity. What do you know to be true?
3) Look for Profit holes.
These are expenses or areas where money is often spent unnecessarily. Don't ignore the intangible profit holes. Examples may include : Unproductive staff, wrong media, wrong message, wrong agency. Others includepaying late or missing discount deadlines.
4) Constructive Communication.
Miscommunication cause's misunderstandings. Encourage your team to communicate clearly with each other and with clients. Ensure that all communication is constructive and supportive.
5) Apply the Pareto Principle.
The value of the Pareto Principle for a manager is that it reminds you to focus on the 20 percent that matters. Of the things you do during your day, only 20 percent really matter. Those 20 percent produce 80 percent of your results. Identify and focus on those things. When the fire fighting of the day begins to sap your time, remind yourself of the 20 percent you need to focus on. If something in the schedule has to slip, if something isn't going to get done, make sure it's not part of that 20 percent that counts. 80 percent of your clerical time is wasted of activities that produce 20% on your income. 80 percent of your sales comes from 20% of your existing client base.
6.) Focus on what is working and capitalise on that.
Where is there a natural flow in your business? What works well for you? These are your strengths and if you keep doing what comes naturally, you will have success. Take the path of least resistance, Don't reinvent the wheel - less can be more.
7.) Think outside the box Think differently!
If what you're doing now isn't working, change direction -explore. Look at alternatives and keep asking " What opportunities have we available to us right now?" If you do something different you will resolve the problem quicker. If you keep doing what you have always done, you will keep getting the same results.
8.) Create some short term wins.
Identify areas within your current environment that need to be focused on to achieve your desired end result. Create three short term wins to be achieved in a specific time frame. What three short term wins can I put in place for the immediate future ? How do you feel when you win ?
9.) Look for your "Acres of Diamonds".
There is a story about a farmer who lived in Africa and through meeting a visitor became tremendously excited about looking for diamonds. He was so excited about the idea of millions of dollars worth of diamonds that he sold his farm to head out to the diamond line. He wandered all over the continent, constantly searching for diamonds and wealth which he never found. Eventually he went completely broke and threw himself into a river and drowned. Meanwhile, the new owner of his farm picked up an unusual looking rock about the size of an egg and put it on his mantle piece in his lounge. A visitor stopped by and in viewing the rock practically went into terminal convulsions. He told the new owner of the farm that the funny looking rock on his mantle piece was just about the biggest diamond that had ever been found. The new owner of the farm said, "Heck, the whole farm is covered with them" - and sure enough it was. The farm turned out to be the Kimberly Diamond Mine, the richest the world has ever known. The original owner of the farm was literally standing on "Acres of Diamonds" and he never knew.
10.) Accelerate your growth.
Hire a coach to help you facilitate this change. If you keep doing what you have always done , you will keep getting the same results. A coach acts as an independent catalyst for change and is an asset to any organisation looking to accelerate their growth.
I work successfully with clients who want more out of life and business. My ideal client wants more time, freedom, energy and focus, to name but a few. Working as an independent catalyst for change, I give clients direction, showing them how to work smarter and how have more fun in the process. Clients who work with me gain clarity on life and in their business, they are refreshed thus creating the momentum to bridge the gap between where they are and where they want to be.
Contact:
Melanie Donnelly Full Circle Coaching email: life@myfullcircle.co.uk web: http://www.myfullcircle.co.uk
028 90 761 966
|
|
|
RELATED ARTICLES
Used-Book Case Study
Dwight Payne and Gary Heap reside in Santa Barbara, CA, where they attend college and pursue their mutual hobby of science-fiction book collecting. They pooled their book collection of over 4,000 volumes, and sci-fi magazines going back over twenty-five years. All neatly catalogued and indexed, they estimate it would cost $20,000 to assemble the collection today.
The Business Leader as Ultramarathoner
Have you ever heard of an ultramarathon? A standard marathon is
just over 26 miles. An ultramarathon is usually on the order of
50 or 100 miles, though there are some that span one thousand! Imagine the endurance required to run such a race.
Mobile Car Washing Long Term Opportunities in the Market
The long-term outlook for the Mobile Car Washing industry is positive. It is ripe for savvy company to develop regionally or nationally to dominate the market. Currently in the mobile car wash industry there is no well-known companies as is the case with other service businesses such as Domino's Pizza, Midas Muffler, Thrifty Rent-A-Car, and Jiffy Lube. These companies will be able to develop revenues and market share sufficient to sustain franchisees as local leaders in their fields. The Mobile Car Washing Industry awaits a company, which can standardize the industry and allow for consumers to know what to expect.
Three Cs - What Startups Need to Get a Business Loan, Part 1
You want to get a good, solid overview of what it takes to acquire that business loan you need, especially if you are a startup. The essential element of what the lenders out there require of you can be wrapped up in the acronym, C. C. C. These are...
Why Every Student Should Start a Business
With the economic downturn, students in all the major business schools have been dropping out of their entrepreneurship classes and transferring back to classes where they think they have a secure future. Students and professionals who were once planning to start businesses now have decided to go back to their cushy jobs. Everything is going back to normal. Or at least that is how it looks. Below are nine reasons why any student should start a business:You gain experience. Owning and running your own business is an incredible way to gain experience and credentials regardless of whether you decide to stay in business once you graduate. Jaime Gonzalez of Oklahoma State University received the highest job offer in his entire graduating class. Now, there are two kickers: First, he was the founder of an IT consulting company, and second, he had a 2.4 GPA. Hmmm...I wonder if starting a business helps in getting a better job when you graduate?
You have nothing to lose. I think it's safe to say that most students dip into their parents' checkbook when it comes time to pay the bills. In general, students aren't paying child support, rent, utilities and many other expenses. The worst thing that could happen if your business fails is that you get a job, have an incredible credential on your resume, and have experience that will increase your chances of success in the future. The best thing that can happen is that you'll become the next Microsoft. I don't know about you, but I think that is better than choosing between no job and jobs that you're in just for the money.
Two-thirds of millionaires are entrepreneurs, according to Thomas Stanley and William Dank, authors of The Millionaire Mind. If it's the money you want, then consider entrepreneurship. You receive not only a salary, but also a lot of money if you're lucky enough to sell your company or take it public. Michael Furdyk, a successful young entrepreneur, was able to sell his business, MyDesktop.com, for $1 million when he was 16 years old!
You develop networking skills. You've likely heard that your network increases your net worth. Consider the fact that by running a business and constantly being in a business community, you will develop excellent contacts. If you choose to get a job after you graduate, you will have a great pool of people who will be more than happy to hire you or send your resume to somebody who wants to.
You increase your value. Put simply, starting a business in college increases the value of "the brand called you" and gives you more options. For example, an entrepreneur with a large brand value can publish a book, star in a documentary movie (i.e., Startup.com), or go straight to the top of another company. I recently met one of the founders of Diversity Planet, a job site for minorities. He spent a year working very hard on the company and has since left to take a reporting job with Dateline NBC at the ripe age of 20! People don't often don't get an opportunity like that until they are much older.
Operating a profitable business in the long term is less risky than being an employee in the long term. For example, just look at the recent economic downturn. Tens of thousands of people have been laid off. I can guarantee the owners of profitable businesses are still with the business. They will be the last people to go down with a ship. Business owners can have multiple streams of incomes from different customers. If you're an employee, you only have one stream of income and therefore are bearing more risk.
You will learn more about yourself and what they don't teach or prepare you for in school. Furthermore, entrepreneurship is the combination of all the disciplines of business. It includes knowledge of marketing, accounting, management and operations. Already having knowledge of these topics before you take classes on them allows you to see more clearly how everything applies. Also, you will be able to learn early-on what subjects you like so you can make better decisions on what to major in and what industries to target.
It is yours. You make the rules, create your own hours, work from wherever you want and choose who you want to work with. You can also pick what interests you the most in the world and then start a business that is related to that topic in some way. If you like art, you can start a design business. If you like marketing, you can create or choose a product and then market it. If you like writing, you can write a book and do your own public relations and marketing. If you like the Internet, you can start a Web development business.
You'll grow. I personally have grown a lot from owning a business. I used to be terrified to speak in front of others. Now I look forward to it. Before owning a business, I had probably read a total of five books outside of school, and I only read them because my mom made me. Since starting my business, I've probably read more than 100 books. The business has also allowed me to learn more about myself. I know that I will be an entrepreneur forever in some way, shape or form!
Youve Found Your Guru, Now What?
In my last article, "Follow That Guru", I told you about the one (1) simple technique I used when starting my home business, "A Name".
The Fear Factor
I recently conducted a lil' survey asking my colleagues what were their biggest fears when thinking about starting a business or running their business. The following are the top three fears that resulted from my survey and some ways to combat them.
Entrepreneurs - 9 Top Mistakes to Avoid
1. Isolating Yourself
When setting up a business, you can get so overwhelmed with the administration that you don't focus on building up your network. Networks can provide a way to catapult your business forward through referrals, joint ventures, or providing industry knowledge. Networking does not need to be through formal events but can come in many forms. Even using websites to become aware of who and what is out there is useful. Giving time for self development and training activities to grow your skills, can be one area that is given a lower priority which can often lead to unwise decisions.
Use Your Youth To Your Advantage
You should wait until you're older and have more business and real-world experience before starting a business. You should just focus on school for now. Nobody will take you seriously at this age.
Pre-Money vs. Post-Money Valuation
When a company decides that it must raise capital, a key question that must be answered is how much the company is worth. For example, if the business needs $500,000 to get started and/or grow, how much of the equity in that company should $500,000 command? Once this question is answered, the company will go out and try to find investors. When doing so, a key question often arises as to whether the valuation is "pre-money" or "post-money."
Ex-Yankee Pitcher Pitches Barter As Powerful Business Tool
Mission Viejo, CA - June 14, 2005 - Bob Meyer, a former major league pitcher in the 1960s who signed four-consecutive major league contracts with the New York Yankees, is now the most visible spokesman for the worldwide commercial barter industry.
Hearing That Entrepreneurial Voice?
Women business owners are our only clients, so naturally we celebrate and support female entrepreneurship. Operating in this market gives us the good fortune to learn about some of the deeper themes in the lives of women business owners. It gives us insights into what really matters to women, and to what contributes not only to their success, but more importantly to their happiness and gratification in their professional lives.
Curb Your Enthusiasm
Isn't enthusiasm a good thing? Aren't we urged to be enthusiastic
about what we do? To be committed?
Identifying the Right Venture Capital Firm Partner
Venture capital firms are comprised of individual partners. These partners make investment decisions and typically take a seat on each portfolio company's Board. Partners tend to invest in what they know, so finding a partner that has past work experience in your industry is very helpful. This relevant experience allows them to more fully understand your venture's value proposition and gives them confidence that they can add value, thus encouraging them to invest.
Are You an Entrepreneur That is Starved for Time?
Being an entrepreneur and running a successful home-based business is stressful at times, and can be hectic. Success within a home-based business though, absolutely demands time management skills, or the chores that need to get done will be left undone, and procrastination, as well as a serious "personal time deficiency" will occur.
Rx for Falling Corporate Profits
Once again the squeeze is on as renewed inflation worries slow the economy's growth and many companies resort to believing that cost cutting is the best means to scramble back to profitability in an uncertain economy. The problem with this classic approach is that it sends the clear message to your brightest and best talent that no matter how well they perform, today there is no job security. Not only does such a move have a serious impact on morale, but as the economy improves we will find ourselves once again in a very tight labor market. It will be next to impossible to replace laid-off workers and worse yet, your current work force, especially those brightest and best, may well decide that it is time to move on to greener and possibly more secure pastures before the next downturn hits. Is there a better approach than cutting off your nose today and spite your face tomorrow? Absolutely!
Are You An Entrepreneur?
With all the buzz about everybody being an entrepreneur these days wouldn't it be nice if you could really find out if you have what it takes?
Think - Dont React
How you think, your relationship with yourself is what decides how well you communicate with your customers and relate to your team.
What It Takes To be An Entrepreneur Series: Action
Many people have the professed desire to be their own boss, start their own business ecetera, ecetera...
100% of Nothing
What would it be worth to you to receive a steady stream of new customers with little or no effort on your part? Would you be willing to pay 10% of the revenue they generate? 20%? 50%? Or do you believe that you can't afford to pay anything?
|