When you own a small business, there are dozens of people and projects vying for your time and attention. It can get hard to figure out where to focus your resources and easy to become overwhelmed.
Furthermore, in my years of consulting what I have found to be the difference in success or failure of a business was not the amount of money, a business owner had on hand, nor the education level of the management team. It was his or her daily habits and beliefs, that determined success or the lack there of.
What is profit? It is simply, how much money the business makes after transaction and paying taxes is over.
Traditional thinking about profit says, Revenue – Expenses = Profit. However, this method fails to measure lost opportunity.
What is lost opportunity?
First, business has people performing activities each day. The lost opportunity is in not measuring, managing and leveraging those activities on a real-time basis.
Management fact, your company profitability depends on how well your people consistently perform specific activities minimizing errors.
The following are 12 tips to help your business increase operational efficiency, reduce costs, improve customer satisfaction, and stay ahead of the competition.
1 – Living a balanced life
A. Work and business are not the be-all and end-all of your life. Learn to have fun! Spend more time with your family. Take a vacation once in a while. Engage in activities that will rejuvenate your spirit and your life. Take care of yourself, and your health, exercise and eat fruits and vegetables. Your productivity and focus will improve if you are stress-free and healthy. Bad health and divorces has destroyed more businesses than I have room to write about in this article.
2 – The Destination: Goals, Themes and Vision
A. Go find your business plans and update it. Since your business’ inception, a number of factors must have changed – from the overall business climate to your product line. Take all those changes into consideration, consider the business and economic climate, factor in your and your family’s goals, and get a clear assessment of the direction of your business. Get in touch with your business coaches, if any. What is your overall vision of your business? What are your goals 5, 10, 15, 20 years from now? What is your business theme and brand to your customers? Is it relevant to your business and memorable and fun for your customers?