About Us

Correct These Two Business Mistakes And Watch Your Profits Soar

By Larry Andrew

Here’s the dilemma: You spend sixty hours a week or more

working on and in your business. You know you have good

employees. You know you have a good location. You advertise

regularly. You know there is a need for your service or

product. But, your business is still floundering. You may be

making one or two critical mistakes.

Many businesses make these mistakes. Some succeed in spite of

the mistakes. Most close their doors after a few years.

Correct both of these mistakes and your business will flourish.

Your profits will increase.

You must realize that both of these mistakes are dependent on

each other. You cannot correct one and expect success. You

must correct both of them! If both of these problems are not

corrected, the business will continue to flounder. The two

mistakes are:

1. Improper organization of the business

2. Improper marketing strategies.

1) Improper Organization: As your business grows, you add more

personnel to take care of certain areas of responsibility.

Everyone working in a given area reports to the person “in

charge” of their area. That sounds very good on the surface, but

from an operational standpoint, it is a major mistake. This

mistake is only compounded as the business continues to grow. It

causes reduced efficiency, duplication of effort and poor

communication.

How to resolve: First, the business should look at its

organizational structure. It should identify all the processes

that are currently being used. Each process should be thoroughly

documented and evaluated. Then, the relationship between the

various processes should be examined. The business must then

identify what process must be done first, second, third, etc.

Areas of duplication should be eliminated. Non-productive

processes should be eliminated. Organizational structure should

be reassigned according to the business processes.

The best way to identify and resolve the organizational

processes of a business is through the use of a committee. This

committee should be composed of employees from different areas

of the business. It may be two employees for small businesses or

it may be ten for large businesses. It will require some extra

time on the employee’s part, but the potential benefits far

outweigh the additional responsibilities.

2) Improper Marketing Strategies: Many businesses don’t know

how to correctly market their products or services. They pick a

location, put up a sign that says, “Open for business” and

expect people to come piling in. This is along the lines of the

“build it and they will come” mentality. Or, they may simply

send out an announcement to homes in the surrounding area to

drum up some business.

Frequently, a business will hire a professional marketer to

consult with their business. Often the professional marketer is

able to create a marketing campaign, which does in fact increase

the business sales. When the sales begin to multiply, the

business is usually elated. But, here’s the paradox, you can

increase sales by ten or a hundred fold, but if the business

cannot handle (fulfill) the increase in sales because it is not

properly organized, the business will only cause more “ill will”

with potential customers and again will fail to reach its

maximum potential.

How to resolve: After the business has begun identifying its

step-by-step processes, their marketing should be examined and

evaluated. The business should review all of its current

marketing campaigns and procedures. An analysis should be done

to address marketing concerns such as: who are their customers,

what are the needs of the customer, what benefits do the

business products or services offer their customers, what market

testing procedures are being used, how does the business market

to current customers, how much money is the business spending to

get a new customer, how much money is being spent on current

customers, what related products or services does the business

offer, what marketing has been successful, what areas of

marketing need to be improved, how many sales can the business

currently handle, etc.

Once a business has addressed both it’s organizational

structure and marketing strategies, it will begin to achieve its

potential. The objective of every good business should be to

organize correctly around its processes and create customer

focused marketing. This will achieve maximum profitability and

customer satisfaction. They go hand in hand.

About the Author: Dr. Larry Andrew is an educational and business consultant. He created his own business and used these techniques to grow it. He is also the author of multiple affiliate marketing websites including www.ez-printer-ink.com and www.ez-software-review.com. If you would like to contact him about a free consultation with your business, you can email him at contact_us@ez-software-review.com. Source: http://www.isnare.com

Permanent Link: http://www.isnare.com/?aid=1811&ca=Business