Why Capital Is Not Your Growth Problem

  Growth is one of the most crucial factors entrepreneurs face throughout the life cycle of their business. Many business owners experience stagnation and turn to the securing of capital as a remedy. However the lack of cash is not the cause of their stagnation but simply one of the symptoms. Do you find yourself constantly reacting to cash flow shortages? Does your productivity always require an increased effort in order to grow? Sustainable growth depends upon a scalable business structure and operation that will continuously improve profit while avoiding costs and input increase.   Plan your growth As a business expands its footprint, more and more opportunities present themselves but they are not necessarily the right ones for any given time. Also entrepreneurs are creative people by nature. Every day, before noon, they have probably come up with dozen of ideas for a new service or product. This kind of constant demand and creativity can distract them from their bread-and-butter business. The solution? Planning! Business planning is a comprehensive process for determining a business future and how it can best achieve its goals. It audits the full potential of a business and explicitly articulates the business’ objectives, the actions and resources required to achieve them. Desired outcomes come from intentional vision, intentional actions and intentional planning.   Make adjustments Making a few key adjustments can improve the scalability of a company. Reviewing business processes is a good way to ‘trim the fat’ by reducing unnecessary redundancies and increasing efficiency. The employees executing these tasks may provide interesting insights to improve the current processes. In a business providing services...

Stop Being Busy, Start Being Productive: Operations versus Profits

Managing a business relies on a network of systems and processes that are efficient yet flexible. They require careful scrutiny and evaluation to insure they include the right methodology and procedures. The art of accurately evaluating and tweaking your processes to improve your operations profitability is critical to building success and staying competitive. Systems and processes are put in place to keep companies on course toward their profitability goals and to minimize surprises along the way. They provide a clear and consistent blueprint for how business is done on a daily basis and how decisions are made. Inefficient systems and processes are costly in terms of dollars, waste, rework, delays, resource utilization, whereas ineffective ones are pricey as well because they are not reliable. They don’t do what they are meant to do.   Use the right metrics Management can’t comprehend the extent to which their organizations and processes are efficient and effective unless they choose and use the right metrics. The results of those measurements will help them improve the processes and the overall organization. This includes management processes as well as lower-level work processes. Some process efficiency measures are: resources (dollars, time, labor) expended per transaction of unit; cost of poor quality result and rework; percent of time items were out of stock when needed; percent of on-time delivery. Some effectiveness measures are: how well the output of the process meets the requirements of the end-user or customer; how well the inputs from the external suppliers meet the requirements of the process. By contrast, measures of ineffectiveness include: defective products; customer complaints; decreased revenues. For each of the metrics chosen,...
3 Strategies to Make a Financial Difference in Your Business

3 Strategies to Make a Financial Difference in Your Business

Business owners and executives have long sought ways to improve their bottom line. Usually their energy is focused on how they can attract more customers to generate additional sales. However, working strategically is the key to immediately boosting the bottom line. Business strategy is not only about how to be more profitable tomorrow but also how to immediately march more dollars into your business and onto your balance sheet! These tactics will help your business grow in any kind of economic climate, recessionary or otherwise. Here are 3 Strategies to improve your bottom line today: Implement or Upgrade Your Systems and Processes. Systems and procedures are put in place to keep companies on course toward their profitability goals and to minimize surprises along the way. They provide a clear and consistent blueprint for how business is done on a daily basis and how decisions are made. Inefficient systems and processes are costly in terms of dollars, waste, rework, delays, resource utilization, whereas ineffective ones are pricey as well because they are not reliable. They don’t do what they are supposed to do. The first step is to go back to the fundamentals: ‘why’, ‘what’, ‘who’, ‘where’, ‘when’ and ‘how’ questions. The first question about any process/action is, why do it at all? Often many steps exist simply because of the status quo: ‘We have always done it that way’. The second question might be, why do we do it this way? Then, what is being done? What should be done? What can be done? When should it happen? And so forth. The second step is to not only look...

Millenials: Changing Consumer Behavior

Goldman Sachs | Our Thinking – Millennials: Changing Consumer Behavior The Millennials – the largest generation in US history – are entering their peak spending years. Lindsay Drucker Mann, a vice president in Global Investment Research at Goldman Sachs, explains how companies are responding to their growing economic...

A Single Blood Test For All Cancers? Illumina, Bill Gates and Jeff Bezos Launch Startup To Make It Happen

A Single Blood Test For All Cancers? Illumina, Bill Gates and Jeff Bezos Launch Startup To Make It Happen Illumina CEO Jay Flatley What if a simple blood test could detect any cancer early, when it was still easy to treat? It sounds like science fiction. But Illumina, the $24 billion (market cap) biotechnology company that has pioneered cheap, efficient sequencing of DNA, says it could be a reality in a...