Doing the 5 right things in your business?
Or perhaps doing the right things but in the wrong order…
The optimisation ladder gives a quick view to getting your business sported in the right order.
1. Start with Margins. Without the right profit occurring selling or promoting products with low or no margins can be a recipe for disaster. The impact of discounting can be catastrophic on margins.
E.g. a 10% discount on Sale Price with a gross profit of 40% will require an additional 33% increase in sales to reach the same profit level
2. Productivity – Time Management audit on the whole team. Work out your dollar per hour rate, and what are the High value and Low value tasks. Discard and Delegate low value and repetitive work, and increase your Design work (high value)
3. Sales and Marketing – Get crystal clear on your Market Dominating Position, your mantra of difference. Then offer it to clients. Increase transactions by making more offers, upsell, cross sell, down sell and bundle your products or services. Build the Life time value of a client.
4. Systems – got a problem = systemise it. Systems are a core requirement to building business value, and improving all areas including profit and customer service. Create box flow chart of each process involved and examine the process to define, improve, documents, implement and measure….keep improving them. Document all business processes as your Business Operating system. Job roles, new employees, cross training all benefit.
5. Get scale – by making every process Teachable, valuable, and repeatable. The costs increase when scaling but the profits can also improve exponentially if the other parts of the ladder are in order and the processes embedded
This is one part of a 9 part process to build value in your business.