Monday, March 18, 2013

If making money with your business isn't easy...

There are 5 basic principles one MUST follow in order to be successful in their business endeavors.  I know that each and every business model is different but there are unmistakable habits and principles that the great businesses apply to their organizations. Here is a breakdown of the five in order of importance.  After all if you aren't doing these 5 things making money with your business is probably more difficult than it has to be. 

1. Organization of your vision - One of the largest issues I find with people who run their own gig is that they lack a solid vision for the course of their company.  I liken the vision of a company to its soul, without a vision a company has no soul.  So the first thing to figure out is are you cut out to manage this company and come up with the vision for it and then apply that vision.  Every great company has this we all know their slogans.  As the head of your organization you should have the sight to be able to lead accordingly although if you feel as if you don't then you should hire someone else who has the drive and vision for the company.   Many business teachers will tell you to ' use your strengths and hire your weaknesses.'  A good leader will know what he is good at and were they are weak.  Strive to outline a vision and then never hesitate from organizing it throughout your business.

2. Raise your prices -  Yes, that's what I said.  If you are in an industry that has the leeway to fluctuate prices, I suggest you raise them.  I believe you should offer an excellent product or service with alot of customer oriented perks and charge a premium for it.  This way your profit margins will be higher and the amount of 'annoying' customers will be minimal.  That way you spend less time on the cheap customers who cause all of the customer service issues and have more time to dedicate to your best customers, who will most likely do more business when you give them more time.  It is simple Pareto's Law of 80/20 Principle.  Don't worry about what the competition will do, just make sure your product or service leaves your customer in awe, and that won't think twice about going to your competition.

3. Encourage your employees - This sounds like it is a no brainer but you would be surprised how many business owners do not spoil their employees.  When I say spoil I don't mean you have to lavish them with outrageous benefits or company cars, but what I am referring to is more along the lines of issuing raises that are based on performance, giving employees perks that they can  work for everyday, to add bonuses to their paychecks.  It's not that hard to think up ideas if you really try.  The extra expenses will add up in the profits, with greater employee attitude we increase customer service, in turn we increase customer satisfaction.  Then your getting more customers.  Win - Win

4. Let tradition die - Cubicles. Middle managers. Corner offices.  Company cars.  Those are all things of the past.  To grow your bottom line look at all of your revenue ad see where you can make the cuts, cutting wages is never a good idea unless you are going under.  These traditions are stale old leftovers from a time forgotten.  We need to think more open, as the boss have your desk right along with everyone elses that way communication and work focus can all be more open.  People tend to goof off less when the boss is around, plus if your working along side of them it breaks the barriers of worker - boss stereotypes and keeps everyone on the same level.    People can come right to you with a question or you to them it is just one thing that can transform your office culture from a stagnant cesspool with no flow to a river of productivity and communication, couple with teamwork and camaraderie.  You have nothing to lose but more money, so break some barriers.

5. Earnest desire for customer satisfaction - The best companies out there and the ones that grow the most consistent are the ones who shock the customers with outrageous customer service.  It isn't hard to do, sometimes it just costs extra time or a little money but in the end your company's reputation is on the line, I suggest you back it up with concrete proof that you care for your customers.  It will pay you in the long run.  So wow your customers and they will wow you back.