THE ENTRECODE BLOG
Finding Your Hidden Profits……
My job is to help my clients to find the profits which are often hidden away in their business.
You can divide my clients up into three groups:
- Those who struggle to break even every year or make a small profit. The hidden profits here are found by applying the principle ‘the easiest way to make money is to stop losing it’. Back to basics tools like Zero Based Budgeting, Fixing System Slippage, and ‘Moneyball’ type analysis generally reveals significant hidden profits which can be quickly liberated. This normally lifts them to their industry average.
- The second group flat line along around the norms for their industry often 1-5%. Some are happy to do this and that’s fine, others want to grow the business or prepare for exit and need to boost profits in order to achieve their goals. The key is to help them look at their business differently, the opportunities to boost profits come from in-depth analysis of where money is made and lost in existing products or markets. Exiting loss makers and refocusing on profit makers is a good start. Then a range of tools and analysis can be used to really drive up margins including customer perception surveys, efficiency groups, better alignment between goals and strategy and an array of others. A number of businesses have become market leaders in profitability in their industry using these approaches.
- Finally the third group consistently make profits 2/3 times the average for their industry (these are rare). The key here is to conduct a detailed risk analysis so they don’t go backwards. Most business failures are generally preceded by a period of sustained success, this unfortunately only becomes obvious after their demise.
I will be presenting a workshop at BizWeek 2014 in Hull for CEOs and senior managers on how their businesses can find their hidden profits.
Watch this space for more details…….
Five things you probably didn’t know about successful entrepreneurs
- A high percentage of entrepreneurs are dyslexic, but this does not stop them from being successful. If anything, it drives them to want to succeed.
- Many entrepreneurs left school early with no qualifications. This seems to provide the energy to want to prove to themselves and others that they are OK.
- People often become entrepreneurs because they want to be independent and be in control of their destiny, not usually to get rich quick.
- Many entrepreneurs are quite introverted and shy but they come alive and become animated when you ask them about their business.
- Once successful, many are keen to contribute to their community or industry sector.
HOW TO BECOME A ‘ROCK STAR’ ENTREPRENEUR
Great entrepreneurs think and behave in unique and idiosyncratic ways. Getting and staying in the zone enables them to be innovative, focused and inspirational. One tool they use is personal mantras to help them control their self-talk and to keep them going when the going gets tough. You can do the same and achieve results way beyond expectations. Here’s how:
Typical Mantras:
Getting into the Zone
- ‘Keep the eyes on the prize’,
- ‘Just do it’,
- ‘Stay focused’,
- ‘Get into the zone’
Staying in the Zone
- ‘Avoid the energy vampires’
- ‘Prioritise and sacrifice’
- ‘First things first, second things not at all’
- ‘Plan A didn’t work, so now to plan B’
- ‘You always get one of two outcomes, success or learning – and I value both’
- ‘Keep it simple’
So use these mantras or get your own to help you get and stay in the zone. You will become much more efficient and productive when you do.
