Employee Reviews are no one’s core competency in small business. They can be time-consuming, sometimes awkward, and potentially polarizing. Done well, reviews can help your team grow, make you a better manager, and enhance company culture. Done poorly? I have seen good employees quit on the spot, dedicated employees give up, and poor employees continue to wreak havoc on your business.
I don’t often talk about how to get your price down. I’m more of a ‘how to get more money out of your target customer’ kind of coach. However, some of my followers are cost leaders and sometimes they need to leverage that advantage.
Too often we conflate our cost with price. There is a correlation: If your costs are higher so must your price be. But never forget that…
The marketplace sets the price for most of us.
Most of my clients have predictably busy and slow seasons. Of course they would prefer to have steady business year-round with no timing conflicts, but I will write a fantasy blog another time. Today I want to expose an opportunity many companies are missing.
It begins with a change in mindset: There are no slow months.
If you call me or any other business advisor for advice, sometime in that first 30 minutes you are going to express concern about a business outcome and we are going to ask you about the relevant budget.
It’s OK to say you don’t have a budget if you don’t. You are not alone.
When you factor in capacity, timing, and cash flow – no two companies will ever have an identical cost basis. So why do we focus so much energy on price?
Small business has a problem. Most of the time it is too busy to solve basic problems. The rest of the time there is no money to pay for solutions.
If one of the issues you need to address is a low profit, it is easy to see how the cycle of too busy and no money could go on forever.
No one is really talking about it yet outside of the financial planning circles, but it is not a secret: There is a Recession coming and it is going to sting because we have had it so good for so long!
How soon? How big? How long?
A couple of years ago I did a webinar called “The Ten Myths That Are Hurting Your Business.” It was probably one of the most poignant webinars I ever did and I still receive comments from clients about a “myth” they are living.
I want to expand on one myth in particular because with today’s low unemployment and strong economy, employee retention and advancement are more important than ever.
If you set out to improve your profit by one percent, will you succeed? I bet you won’t and here’s why: It’s too small a target to drive sustainable change.
That is not a reason to give up. Let’s just change how we look at the problem. To begin, there are three obvious places for companies to improve their bottom line.