When business leaders are under pressure to improve the performance of business, their enthusiasm can somewhat cloud the less obvious gaps that will make the difference to a business running sustainably verses a business running at its full potential.
Those in control of the business will generally focus on the core functional elements of a business and refine the essential elements that are not performing well without placing too much energy on the less prominent gaps that often provide an annoyance factor.
New business entrants tend to be driven by enthusiasm more so than strategy over a period of time, as the new entrant wants to make a profit as soon as possible to prove the viability of the business.
Even with the most experienced business people, the desire for success can occasionally lead them down a pathway cloaked with difficulties, even when they know in the back of our minds that the path of high risk shouldn’t be pursued, yet the blind temptation of believing that such hurdles can be overcome is often too great.
The 12 steps to better profitability are a bit like checking the temperature of the water before diving in. The 12 steps focus us on progressing through the most common areas that cause a business to succeed, or falter. The benefit of using the 12 steps is to assess each step and act on the findings by pursuing actions that will promote profitability and uncover any gaps that may cause adverse outcomes for the business.
The 12 steps consider the critical elements of a business and the influences that may benefit or impact on the business.
- Affordable cost of business entry or operation.
- Getting the money to start or operate the business
- The right leadership, vision & workplace culture.
- The right team.
- The market.
- Price structures.
- The competition.
- An effective method of getting your goods to the right market.
- Ability to expand the range of goods.
- Product development.
- Harvesting revenue from the goods sold.
- Exit Strategy
The above is simply an overview of element headings that may support maximising business profitability. There are many ingredients that sit inside these headings to support better profitability that will be covered in more detail in separate articles.
If you would like any further information or support in the understanding of the 12 steps to profitability, or you seek support in working through the 12 steps, please contact us.