Operating a business

Operations are where the magic happens. 

How you operate a business combined with + good/lousy making decision = the length of time you remain in business. 

Once your business foundations are clear, and you have answered the three fundamental questions around ( Financial, Time, Energy), it is time to achieve your goals by doing. 

The number one thing to remember is. You are in charge of this journey and the path is never straight.

Setting the Strategy 

Some questions to ask to be clear on your strategy. 

  1. What does your business want to achieve? 
  2. What are the necessary steps to take? 
  3. How will you communicate this message to your staff and customers?

Next, putting the correct procedures in place. 

Having the correct systems and procedure will help save time, money and energy

A flow chart is an excellent place to start. 
What path does a customer take? 
How will your service or product be sold? 
Are there areas showing where there is excess costs, time, energy?

Review the 4P’s (Product, Price, Place, Promotion) additional three for Services (People, Process, Physical evidence)

Review the procedure to look for improvements. 

The collection of data 

Any improvements in operations will come as a result of good data collection.  

  • Sales are data. 
  • Costs are data. 
  • New followers/likes are data. 
  • Monthly email click opening is data. 

Questions 

How will you use the data collected? 

Useful financial data is to predict tax liabilities. To meet sales targets, to figure out if a product or service is taking too many resources. 
Knowing when you need to hire staff.
Knowing how much you can take as a wage.
Knowing your profit.

Marketing data can be collected, paying for social media ads must equal a return on investment to the business.

Technology is allowing a business owner to gather data. However, action on the data received is critical.  

What data do you need to operate your business and what ways can you use it? 

The resources available 

If you had unlimited finance, time, energy, you could pursue everything. 

Ray Dalio. “I learned that if you work hard and creatively, you can have just about anything you want, but not everything you want. Maturity is the ability to reject good alternatives in order to pursue even better ones.”

Look at the resources you have and use these to achieve the best possible outcome. 

Compare your data to your KPI’s ( Key Performance Indicators)

What are KPI’s? And how to use them? 

A KPI is a set data point you need to achieve the strategy of the business. An example The sales budget is €150,000 for the year, having benchmarks (KPI’s) along the way is an excellent way to finding out if the business is on the right course. 

Other KPI’s are this year profit Vs last year. Gross margins % operating expenses % customer numbers period on period. 

If you want to make better business decisions?

Book a call so I can understand what your operational problems are, and to give you a clear plan on how to address them.

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