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The old saying 'You have to spend money to make money' can be a dangerous one. Every business has it's costs, but not every business owner takes the time to distinguish between what is an essential expense, and what is a 'nice to have' expense. And on top of needless expenses, businesses can also lose potential profits through poor management processes and techniques. So let's have a look at 5 of the main culprits which contribute to lost profits and reduced success: Overheads Limit your overheads to 10% of your sales. If your overheads are significantly more than 10%, some options may include: reducing office size removing unnecessary travel - try phone or video conferencing stop trying to impress with an expensive fitout overstaffed - look at employee numbers and positions consider what you spend on office supplies - these are often 'nice to haves'. High inventory levels - insufficient purchasing controls Advertising costs - what are you spending and what return are you getting? Employee and Management Issues Happy employees work more effectively and productively. If your employees are unhappy then their performance is impacting on the potential profits of the business. What to look out for: staff performance - keeping unproductive employees nepotism - hiring family and paying them too much unskilled employees - training not provided, no opportunities poor morale - salaries, working conditions, benefits Processes and Systems Failure to update processes with technology can leave you out in the cold with your customers and suppliers. Older technology becomes obsolete and is no longer supported by the supplier. Do you have: old or no technology - processes take longer and are prone to errors up to date communications - email, web enquiries, voice mail, email you can check wile away from your office the right management information - are you collecting and useful data Cash Flow Cash is king. More businesses fail due to cash flow problems than anything else. These systems must be failsafe and monitored on an ongoing basis: acounts receivable - collections must be on time payment terms - don't create a situation where you provide the service now and customers pay later credit losses - from poor credit approval processes pricing - not charging enough for what you do/sell Not enough Planning Lack of an articulated plan can lead to poor (and costly) decisions: long and short term goals not articulated - business lacks direction employees not engaged - not involved, don't contribute, no ideas decisions are ad-hoc, and not taken with the bigegr picture in mind How does your business fare against some of these profit drainers? Are you spending money needlessly, or on items that aren't adding value to your business? There is always room for improvement when it comes to profit: spend carefully, save easily, invest wisely. Royalty Free Coaching Products. - Keep 100% of the profits by selling your own royalty free coaching products! Type At Home - Converts All Traffic Ez. - www.type-at-home.com/affiliates.html - Stop wasting your time for Tiny Profits! Try it and See for Yourself! Actor and singer Manabu Oshio was sentenced to 2 1/2 years in prison by Tokyo District Court on Sep. 17 2010. The court judged Oshio giving a woman named Kaori Tanaka the synthetic drug MDMA, which caused Tanaka's death. Oshio was accused of failing to fulfill a responsibility as a guardian when she took a drug and got very sick. Article Index: | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 | 22 | 23 | 24 | 25 | 26 | 27 | 28 | 29 | 30 | 31 | 32 | 33 | 34 | 35 | 36 | 37 | 38 | 39 | 40 | 41 | 42 | 43 | 44 | 45 | 46 | 47 | 48 | 49 | 50 | 51 | 52 | 53 | 54 | 55 | 56 | 57 | 58 | 59 | 60 | 61 | 62 | 63 | 64 | 65 | 66 | 67 | 68 | 69 | 70 | 71 | 72 | 73 | 74 | 75 | 76 | 77 | 78 | 79 | 80 | 81 |
More Articles:1. The Leadership Imperative: Making Your Leadership Your Life PERMISSION TO REPUBLISH: This article may be republished in newsletters and on web sites provided attribution is provided to the author, and it appears with the included copyright, resource box and live web site link. Email notice of intent to publish is appreciated but not required: mail to: brent@actionleadership.comWord count: 468Summary: The author describes a vision of leadership that you can use throughout your career. It's a vision that will also help enrich your life. The Leadership Impe… 2. Challenge of ERP Implementation: Q and A with Rick Maurer By Rick Maurer Question: ERPs seem like a good idea, so why is return on investment so low?Answer: Resistance often kills many of these new systems. Even though the promise of what an ERP can do is high, the planners often fail to look at how the users are likely to view this “improvement.” ERPs take away the old tried-and-true ways of working. Even though some of these cobbled together systems aren’t all that good, people understand them. When they are asked to give up what they know and what they can rely… 3. 7 Strategies for Sustained Innovation The need for constant reinvention is a given in today’s business environment. And while a breakthrough product or concept can catapult an organization ahead of its competitors, in these fast-paced times, that advantage is often short-lived. While major product or service breakthroughs make headlines, it’s the steady incremental innovations made by employees every day that give an organization the sustained growth it needs.Sustained innovation comes from developing a collective sense of purpose; … 4. Phone Sex is Bad for Business By Lee Raito On August 3rd/2005, Reuters reported that a German man had colluded with a phone sex operator to defraud his employer’s company out of approximately 16,000 Euro or almost 20,000 US dollars, by making 160 phone calls over a year and a half from work. He apparently split the profits 50/50 with the phone sex operator. The courts convicted the man and gave him a suspended sentence of eight months.Does your company have a written communications policy, and are your employees aware of its existence?… |
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