Profits and Business Success - 5 Profit Traps to Watch Out ForLearn Management Articles on management-info.biz. Profits and Business Success - 5 Profit Traps to Watch Out For article will help answer your questions on Management Articles.We at management-info.biz specialize in Management Articles. Management Articles at management-info.biz provides the most up to date news and articles. If you have questions please do not hesitate to contact us.
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! 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. A Leadership Screw Driver: The 90 Day Improvement Plan 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: 648Summary: All leaders must eventually deal with poor performers. The author describes a method to help poor performers become good performers. It is based on developi… 2. Boost Your Leadership Skills By Disciplining Yourself In The Way Of The Question Mark By Brent Filson I'm often asked to come in to organizations and give a motivational speech to their employees. I reply that I'm not a motivational speaker. Never have been. Never will be. Don't want to be. I do something else. I teach their people how to become motivational leaders. That's a far more productive endeavor.The concept and application of motivation are misunderstood in most organizations. The motivational industry is based on a fundamental contradiction; because the focus of motivation is… 3. Better Manager Skills - How to Learn By Chris Anderson When you first take over a department, expectations are usually high but operations are sometimes in disarray. The staff is disorganized, goals aren’t being met, and hours are spent on unproductive tasks. Just when you think the company would never get on track, the CFO recommends that you learn more about something called operations assessment.Crucial Management Skills Help Avoid MistakesAt first, you aren’t sure how operational assessment skills would help you manage better, but you quickly … 4. Managing Monsters in Meetings - Part 1, General Strategies for Unproductive Behavior It happens easily. You're conducting a meeting and suddenly a small side meeting starts. Then someone introduces an unrelated issue. Someone else ridicules the new issue. Everyone laughs, except the person who mentioned the idea. Then someone insults the person who told the joke. Two people stand up and walk out. Others complain that the meeting is a waste of time.Now, what do you do?And how do you prevent this sort of thing from happening?Or what could you have done to stop it once it started?H… |
||||
