Many businesses have been in business 3, 8, 12, or more years, yet each year is a repeat of any other prior year. Why? Because everyone is so caught up in the day to day work of the business (working IN the business) that they don’t take the time to step back and take an assessment of where the business is (working ON the business) and intentionally do things differently to move forward toward the vision for their business. Continue reading →
You get what you focus on. In business, it means focusing on profit.
A business without profit will die. Being passionate about your work may keep you in the game longer, but without profit you are still losing money. You have to keep business expenses in control. There isn’t a shortcut that allows you to succeed if don’t have a clear path to profitability for your company. Every business may go through short cycles when expenses exceed income, but allowing it to happen repeatedly without making adjustments is the definition of insanity – doing the same thing over and over without making changes, expecting a different result. Continue reading →
I find business owners have a hard time keeping the gross profit margins on their product or service in mind when establishing pricing. To be able to maintain your gross profit margin, you need to know what your costs are. Continue reading →
There is a primary problem with measurement. You can measure a million different things. Measure too much and you’ll drown in a sea of meaningless data.
Some measurements are more important than others. Key Performance Indicators (KPIs) are measurements of the critical parts of a system. Measurements that don’t help you make improvements to your system are worse than worthless: they’re a waste of your limited attention and energy. You don’t have time to pay attention to everything – just a few key measurements that actually matter. Continue reading →