All too often I come across businesses that are looking to improve but are looking for the one big thing that will turn their business around. A new product; a new marketing strategy; a new piece of equipment or software, a new pay structure. It’s not that these don’t exist or won’t help your business, just they are rare. So people can spend years searching for the magical fix, during which time the business reaches a point of no return, profits fall, production decreases and staff become demotivated.
My approach is that whilst of course you should continue looking for these, don’t ignore the small stuff. The key to transforming any business is to look at every aspect and keep making those changes. Indeed once you start on the road of continuous improvement, it actually gets easier. The changes are small, incremental, easy to implement and often cost very little, either in time or money. It makes everyone in the business more aware, questioning things, and challenging the assumptions, and so becomes a good habit.
Consider a business generating £125,000 sales a year – not huge, but for a sole trader not too shabby either. If sales can be increased by 1.5%, Material costs and Overhead reduced by 1.5% the effect on the bottom line is quite staggering – almost 40% increase. The same is true for a larger business, and again an increase in the bottom line of around 40%
So how many businesses feel they couldn’t increase their sales by 1.5%, and cut material and overhead by 1.5%? Although these changes are very small the bottom line results are particularly impressive.
Advocate Business Solutions are specialists in transformational change, helping you to focus on what matters and by looking at your business from a different perspective we can work together toward a sustainable and profitable future.