Top 5 Signs your Company needs help

Top 5 Signs your Company needs help

Operations | Posted by YouInc.com - October 28, 2012 at 4:01 pm
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For almost 30 years we have been working with private companies to enhance their operations. We thought it would be valuable to pass on some of our experience and outline some top warning signs and common practices that just don't work.

Top 5 signs your company needs help/intervention

1. No one is to blame – problem is ______ (fill in the blank)
2. Running out of cash, especially without notice
3. Management making dysfunctional or self-interested decisions
4. Overhead costs too high – travel, marketing, office space, etc.
5. Always pinning hopes on the next big thing

Three things that won't work

1. Maintaining the status quo

  • Change is usually needed in money losing situations
  • The business model must be fixed
  • Communicate the problems and take aggressive action to fix them

2. Selling or growing your way out of losses

  • Must reduce costs first (or at least in parallel)
  • Costs don't go down just by increasing volume, it takes concerted effort

3. The Next Big Thing (NBT) as saviour

  • The big order or breakthrough product or large potential customer rarely comes through
  • Even less often does the NBT solve the company's problem
  • Once the company is profitable then you have time to properly develop that breakthrough product or successfully negotiate that big new contract

Tags: operations, process, company, help, indicators, costs, management, sales, breakthrough, product

Comments
Vanessa McWilliams
October 29, 2012 at 8:45 pm

My biggest problem is that my secondary business has me between a rock and a hard place. I have 2 young sons who I stay at home with, and run a Before/After school dayhome to make ends meet. My business is running on it's own as far as paying it's own bills etc, but I need to quit my dayhome and find childcare to increase time I have for my daytime appointments. But to quit my only source of income and 'hope' more appointments come right away is really tough. Its a catch 22, quit everything to fully pursue it full time with no wage, but to increase my wage I need to quit my dayhome to free up my time. It's so hard to know what the 'right' thing to do is, as I know whats right in my heart...but my heart doesn't pay my bills.

Kirchner Group
October 30, 2012 at 12:09 pm

Being an entrepreneur is all about being able to make tough decisions but understanding that you are never going to make the right decision 100% of the time. Do what makes the most sense for you, if that does not work then try another route.

darci que
October 30, 2012 at 3:49 pm

thanx for this ! i think i have your number 5! i'm an illustrator/author.mini publisher and many times a large corporation has entered into discussion with me about going big! to which of course i was ecstatic but at the last minute they always pulled away from me.once it got to the top ,i was rejected because they felt my content was too "familiar" so...i changed my stories to tales not truth and now i have serious interest in 2 chapters stores.now ,i'm thrilled except they take 45% of my sale so there's a tiny profit for me and they take months to pay! my next goal is to try to get them across canada but now i'm at "the scary point!" once the books are in there ,i need to push to get them in all the stores which would drive my costs down per book,giving me a better profit margin.i find myself now at the doubting stage yet again....any advise?

Kirchner Group
October 31, 2012 at 4:25 pm

While it is not uncommon to pin your hopes on the next big thing, it should never be what you are depending on. It is best to try and keep as many 'irons in the fire' as possible so that no 'rejection' really sets you back. An essential skill of any entrepreneur is devotion and dedication. If you believe in something don't doubt yourself - work at it until it is a reality!

darci que
October 31, 2012 at 4:51 pm

i've been "working at it "for a very long time! you kinda woke me up yesterday and made me realize that i need to be pushier! i'm not taking no for an answer! THANKYOU!

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