OK, you’ve started your business, things are running, you’re making some money, but you aren’t quite where you want to be. You find yourself chasing things that aren’t productive, the bottom line isn’t consistently meeting expectations, customers are having issues with your product or services, you’re struggling with what the proper product mix should be for your business, and your pipeline isn’t staying filled.
It’s time to take a serious look at what’s going on within your company and start making some changes. A straightforward way to approach this look consists of five steps to get you started.
#1. Time is Thou
Time is your most precious resource – in a lot of cases, more so than money. Leveraging other people’s time makes you the most money. Set the stage for the day and for your employees, customers and vendors. Get up a couple of hours before or go to bed a couple of hours later than the people (employees, customers and vendors) who make you dance all day.
#2. Cash is King
Do you control all the cash disbursements and outflows (A/P, CC, Payroll etc.)? What items need owner’s/CEO’s sign offs? Payable policies are important not only for getting paid, but also for the sake of managing cash flow. It might be a surprise, but more money is leaking than you thought!
#3. Quality is Queen
Quality of your product and your people defines your reputation. Checks need to be in place to ensure delivery of quality products and services. Employees working on your behalf need to be performing to your standards. Maintaining and managing your internal services is a key part of this too.
#4. Get rid of Princelings
Some of your products, services, employees, customers and vendors are dear to your heart but are not making money for you. Understand what’s making you money, margin for each of your products, and make the decisions to keep focused on those that are profitable. Just because you could provide a service doesn’t mean you should. Stick to core competencies, and then find trusted partners to whom other ancillary needs may be referred.
#5. Heed the advice of your Trusted Chancellors
Your profitability depends upon your ability to focus on growth, cost savings, productivity, delivery, and customer service. Not to mention employee oversight, making sure the bills are paid on time, marketing, prospecting for new customers and closing new deals. A lot of different areas requiring specific skill sets – some that you possess, some that you don’t. That’s where you need to understand where you need help and then rely on those trusted advisors for assistance and insight on how to nurture and grow your company.
At the March 21st Small Business Advisory Board Lunch and Learn event, we’ll help you gain more insights on “5 Things to Make Your Business More Money”. Join us to hear our panel of business experts present great information on how to get started and answer any questions in our Q&A session.