Everyone’s talking about how the new reality is here so we’d all better do things differently if we want our businesses to survive. But what exactly do we need to do differently? Here are a few ideas:
- Review performance metrics more often. Smart business owners are embracing the numbers like never before. Where they used to review reports monthly, now it’s weekly. And in addition to reviewing the standard financials — historical information — they’ve added reports to help forecast the future with information on sales, collections, cash flow, and more.
- Communicate more often and more in depth. In 99% of the businesses I work with, staff numbers have been cut. Everyone has additional responsibilities, so they must work with increased productivity and efficiency. One way management can help is with a disciplined approach to meetings — both team meetings and individual huddles. In these sessions, managers learn to delegate effectively while employees are able to ask questions, greatly reducing the potential for mistakes. And fewer mistakes mean greater profits for the company.
- Analyze options closely before spending a dollar. I’ve heard many company owners saying that since trimming the fat, they’ve discovered they can live without things they once thought essential. This new attitude has opened many remodelers’ eyes to how they spend their money.
- Invest in sales training. This will let you better compete with the low-priced companies that have cropped up since the downturn. You can’t compete on price; you have to win by building value, showing that the higher price will deliver the best result.