Pay good salaries and only offer benefits that your people value. Any bonus, any perk that becomes “automatic” no longer has value as motivation and becomes an instrument of maladministration, not good management. Bonuses, rewards, and punishments are significant, with bonuses being more effective when granted on a case-by-case basis and at irregular intervals. Grant raises whenever they are earned and never otherwise.
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First, keep in mind that your primary focus should be profit. To increase return, you need to work on three major pillars: culture, costs, and sales.
The primary concern of any business must be lucrative: a profitable company has the money to reward employees, offer exciting careers, and in...
The first step in reducing costs is to see all values as, at best, a necessary evil. Every cost is something that must be ruthlessly and as far as possible banned from any firm. There are no off-limit costs, and they are obstacles to the company.
Ask yourself: if you eliminated an individu...
You should understand that when selling, you should not see the customer from a company’s point of view. You should see the client as a person and, as such, emotions are critical when closing a deal. Whenever you make a sale, be sure to ask why the customer is interested in the product.
Cutting costs should be taken very seriously. You have to be among the best in the world to make businesses run better at a lower cost.
Costs should be categorized between strategic and non-strategic. Strategic costs are spending on things that apparently add to the business and improve in ...
The company needs to follow two main rules for managing its costs: overcoming competitors about strategic costs during good and bad times and not pulling any punches when it comes to cutting non-strategic costs.
It is important to analyze costs to succeed in reducing non-strategic ones. It ...
It is imperative to be someone in a higher position because suppliers are already used to dealing with buyers and know how to negotiate with them. Have a director or a manager analyze the costs of each provider thoroughly.
Also be concerned with research and development. Often, executives l...
It is important to rely on meritocracy and use the philosophy of continuous improvement to increase your profits. This philosophy should be part of the company’s culture, creating and encouraging a culture of excellence among all stakeholders.
To create a winning culture, employees must hav...
Firmness and ability generate respect, not resentment. It is the combination of toughness, incompetence, and mediocrity that engenders resentment. Therefore, if you demonstrate competence, your firmness will be accepted.
There is an almost immediate way to increase profits. Send a circular to all vendors, saying that times are bad and that from now on (or in the next twelve or eighteen months) you will not accept price increases, so there is no use in insisting.
A busy employee is forced to set priorities and does what is important. When it comes to staff, micromanagement or lack of oversight may inevitably lead to slow and ineffective employees. The only way to promote efficiency and eliminate unnecessary work is to keep human resources scarce.
Managers make the mistake of being cautious in cutting costs. Cut first and ask later. An advantage of reducing costs is that if you make a mistake, someone will be ready to tell you almost immediately, and you’ll be able to fix it.
Another important point of attention is the decision-makin...
Plan a saving of 15% in product purchases and 30% in contracting services. If you cut too much, some people will complain. Let them complain and wait. If they complain too much, rethink that particular cost.
It is impossible to convince them that you believe in a meritocracy if those whose performance is small can keep on the job and receive the salary. Firing a bad employee encourages others to produce more for the benefit of the company, and that is a meritocracy. It is possible to reduce up to 25%...
An easy method to favour your company’s balance sheet this year, although it only works once is to delay your payments. Most vendors prefer to wait to receive it to permanently losing you as a customer. Never pay a bill until the supplier covers your company at least twice. Some providers may tak...
The most difficult part of cost reduction is resistance to stakeholder change. Often, the people involved do not see the importance of the process.
Therefore, it is vital that the company’s culture be responsible for showing the importance of reducing costs for the company; make it a part o...
Which entrepreneur does not dream of multiplying profits? It sounds like a distant dream, doesn’t it? Bob Fifer, a leading financial advisor, says that this is possible and brings us a clear plan to get there.
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