Proof

BUSINESS

GO LEAN AND DROP THE MEAN …

T he first quarter of the year can be tough for business, so take a look at some kick-start strategies from the National Small Business Council … Put your business through the washer “Start a new business with the one you have, before it’s too late,” is the advice from Mike Anderson, National Small Business Council (NSBC) Founder and CEO, in an article entitled ‘Now is the time to adopt the principle of lean’. Anderson views adopting the principle of lean as “the washing machine effect” - stick your business into the washing machine and clean it thoroughly - your strategic plan, forecasts, systems, sales, staff etc. “ Get rid of everything you don’t need - large offices, expensive cars, poor performing or unwanted staff. Be brutal on the money. This exercise alone will bring relief and a refreshing approach,” he says. “Everything you do should be subject to scrutiny and revision, including your vision,

business and marketing plans, budget, sales and expense expectations, and more. It’s now all about creating a brighter, less stressful view of the road ahead. ” Anderson offers these tips for giving your business a profit makeover: Reward your best customers If you have customers who are giving you the most profit, treat them like gold! Woo them, don’t lose them! Offer them frequent buyer rewards. Send them a small gift at their one-year anniversary. Give them a random call every few months to “check in,” thank them, and ask what else they might need. “Fire” unprofitable customers Sometimes, the highest-maintenance, most time-consuming customers are the ones who pay you the least. Analyse the profit margin or lack of profit margin that each customer, or perhaps customer segment, produces. Stop pursuing customers who are not helping you be profitable.

Build relationships This coming year, it’s time to overhaul your sales behaviour. Turn all one-time sales efforts into relationship sales. Secure relationships as opposed to a sale. Erase those expense lines Reduce your operating expense budget to the lowest possible number. If that means selling your car or closing an office, so be it. You can’t build a new profit base when you are still using yesterday’s expense model. Go through your expenses line by line and get rid of everything you can live without. Outsource Whatever type of skill or service you need, think hard before hiring a new employee or keeping an old employee. Look at each department or each person when you are trying to manage costs. Can you eliminate positions (perhaps through attrition), combine jobs, delete processes and outsource tasks? Outsource exactly what you need for the right amount of

20 FEBRUARY 2024