As an experienced consultant in both lean processes and management strategies, I see mistakes that business owners are making that are having a damaging effect on their business growth. Most people do not even realize they are doing these things that are bringing about a negative result to their business. Are you hindering your own growth? Addressing these mistakes now will make you more effective, reduce wasted time and energy and add to your bottom line.
Here are three things you need to stop doing now.
Listening to the wrong customers instead of your tier 1 clients
Be careful of the loud minority. These are customers that shout the loudest and, in most cases, generally there are no profits from these cohort. We get distracted by what they say and then do not pay attention to our core valued customers who bring us business and profit. Recognize which customers are valuable to you and concentrate your time on listening and communicating with them.
Giving the wrong incentives
Stop giving away things that customers do not need but that are eroding your profits. Discounts may be the last thing you need to give away. We often think that we need to lower prices, but in many cases that is not necessary to get the sale. If you are under pressure on price, why not offer a percentage off their next order or give something free that is of value to them but costs you little.
Spending time on the wrong areas
You already know about the 80- 20 rule. This is your reminder to spend 80% of your time in the area that gives the biggest bottom-line return. Too often we can end up spending a huge amount of time in areas that does not result in any significant returns but will drain our energy and resources.
If you now realize that you are making these mistakes it is time to stop and change those habits. When you are trying to be more effective in your business to enable growth, you must be strategic in how you operate. Being aware of these mistakes and acting is the first step. This could lead to the results you deserve.
Remember, your Local Enterprise Office offer funding to enable you to engage with a lean consultant. I have helped countless business owners become more effective and perhaps I can help you also. Feel free to get in touch with me to find out more.
