subject: Moving in the right direction: the Black versus the Red [print this page] Because when it comes to losing money; people lose sight of what really makes money. Yes, there is the need to stop spending and increase revenue; but how do you find the fine-lined balance?
Firstly remember that without targets or goals you are just driving around in circles'. So set up some feasible and concrete goals for the company as well as the major players internally. Look at something achievable like setting up three month, six month & 12 month goals for the company financially and growth-wise. Examples: cutting down on overheads by 3 month point, increased revenue by 3% for 6 months and/or a partnership with a supplier by 12 month point. Those are just some examples for an overall company goal where as those within should have goals such as the sales director should have 50 new businesses to contact and within 3 months a target of 5 to close. These types of targets help a business work towards some financially beneficial goals; versus mucking around in pointless exercises without a lead.
Drive sales, drive, drive sales. This is a two part category: new business and maintaining current customer base. In this highly competitive market when everyone is looking for business; it is so important to firstly; actively seek new business but to also actively pursue your current customers. They can easily be lost without the courtesy of fore warning. There are numerous ways to gain new business: online, supplier directories, and cold calls. To cover your current customer base, it is best to have a sales person on the road at all times. Puts a friendly face to your customer and up to date on whether your customer has been shopping around.
Define everyone's role. This ensures that every person has a place and a purpose; all tasks are covered with error or gap in the line. The production line theory works; and it works as no one is confused about their position and nothing gets lost. I personally do not like a production line where employees are not empowered to think for themselves and better their position. Finding what works for your business and employees is the solution; if you feel that you have a staff that is educated to only do as they are told- go for production line as you cannot change that about people and will only end up with mistakes and chaos.
Accounts- no one wants to be in the position of tight cash flow; the lack of cash can cripple a business. So having a finance department that understand this is of the utmost importance; it may be difficult and people may not be pleased with you but cash is king! So instead of an accountant hire a juggler' as that is what it will take to keep cash in the account.
The business practices discussed will not magically turn around your company overnight; but will push it in the right direction hopefully from RED to BLACK.
Moving in the right direction: the Black versus the Red
