The easiest way to make money is to stop losing it......

One of the major challenges facing a number of my clients and most businesses right now is responding to the economic situation in the appropriate manner.

After several years of growth and largess, sales are diving but many businesses have been caught like rabbits in car headlights. How to respond? What to do? One thing is clear, they need to continue with a positive cash flow and preferably profits are paramount. If sales can't go up then costs must come down and in many cases drastically. To enable businesses to make the right decisions they need accurate costings allocated to products or service streams.

Where are we making or losing money? What is a must and what is a luxury we can no longer afford? Some managers are good at growth, others excel when the going gets tough. The problem is that they are usually not the same people.....

So get the facts, identify your winners and cut out losers. Do it now before it's too late! If you're waiting for government policies, better economic conditions or a lottery win you are deluded.

JFDI!

How to improve your business by being consultants to yourselves

Here is a tried and tested way to improve your business which I use regularly with clients:

1. Select a small team of 3/4 people who are really up for it. Not the 'experienced' nay sayers but younger recent recruits with an open mind, wanting to make a name for themselves.

2. Create an innovation culture. Ensure you join the group as the CEO or MD but not as the boss, as a facilitator. Tell the team you are going to work on the business together and make some significant improvements.

3. Brainstorm for improvements. Where are the opportunities to significantly boost sales, profits, services or efficiency?
Tip: Follow the money.

4. Identify 3/4 areas to focus on which hold potential for significant gains.

5. Get team members to analyse the areas by getting the facts, trends, stats, KPI's etc. What is really happening here?
Tip: No fear or favour, get the facts not opinions.

6. Identify opportunities for improvement. Where are the quick wins? Where will we get the biggest improvement on the business with the least effort?

7. Try fixing problems, installing new rules or solutions.

8. Celebrate success and learn the lessons! Remember to say thank you!

Not rocket science, but if done well can produce results beyond expectations!