Several years ago Ed Bastarache of Renaissance Executive Forums stated that “everything either works for you or against you.” The more I think about that statement, the more I believe it to be true. In business, there is no middle ground for those that want to have a better business, and so one very concise way to improve things is to decide specifically what things either working for you or against you. Once you determine where things fall, you stop doing the things that don’t work and you continue to do the things that work in your favor.
I offer a very quick way to improve your business. It is so basic, so simple, that if you take the time to do the quick analysis and then follow through, your business will be very different just one week from now. You will be more focused and results will come faster. Since fewer resources will be used, your business will become more profitable.
Day One-People
Make a list of all the positions in the company and vendors that supply your firm. Include any independent contractors used. Position by position, organization by organization, determine whether or not the contributions they make and the results they deliver are positive or negative. There can be no middle ground. When in doubt, the answer is they are not helping the business.
After you complete this analysis, make a plan to eliminate to eliminate those positions not contributing to the goals of the organization. Do the same thing for vendors that supply you. Next to each position or organization you must list a date that the action will be completed by.
Day Two-Strategy
Take a long hard look at the vision of your firm. Does it still work? Either it does or it doesn’t. If it doesn’t, change it. Review the mission. Does it apply? If it does, make sure everyone in the organization understands it and fulfills it. Write that down how you will communicate this vital information on the sheet.
What are your long term goals for the firm? Take time now to review them and to update them as needed. To those that no longer apply, remove them. Create new ones that you have been thinking about but haven’t taken the time to write down. Keep the list short and focused; no more than five.
Day Three-Marketing
Make a list of all your current marketing activities. Next to each program, determine if that activity is bringing in the desired results. Either it is or it isn’t. Once that activity is done, make a second list of only those programs that are working for you. Count that list and at the half way mark, draw a line; those programs that are above the line you continue to execute, those below the line are now eliminated. You have now focused your marketing activities on those programs that actually work the best.
Day Four-Financials
Rank your customers from highest to lowest revenue, then rank them again from highest total profitability to lowest. Review your financials. There should be a natural correlation between the two variables (revenue and profitability). Those that generate low revenue are hurting your business just as those who provide minimal profitability. Make plans to eliminate those customers who are more costly than they are worth, or plan to raise prices to improve revenue and profitability immediately. Write down the date when this will take place next to the name of the customer.
Review your financials, taking time to focus on expenses. Is the expense necessary or is it simply “nice to have.” Eliminate the nice to have as those costs are likely hurting you. Where have you increased expenses in the last year? Why did those costs climb? Where can you comparison shop to decrease your costs going forward? Contact your remaining vendors (see day one) and determine what they can offer you to decrease your costs going forward.
Day Five-Calendar
One of the most effective tools ever devised is the twelve month calendar, so today you will create one. Start by listing all company holidays, significant marketing events including trade shows and sales meetings, staff meetings and deadlines for advertising. Once the format is established, and it is used on a consistent basis, it is easy to update and the NITMA (non one ever tells me anything) excuse can be eliminated. “If it is not on the calendar, it won’t take place” should be your mantra going forward.
Everything either works for you or against you. Take five days to make sure that everything is on your side, helping you to achieve the goals of your organization.
Invest Five Hours in your Business
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