3 Basic Steps for Business Optimization
You have a business when your business works hard to make money and give you extraordinary quality of life. Business in this case is like a machine, is well buried and efficiently. If you have to work all the time; Keep your eyes a little detail and have your hand in every aspect of your business; Then you don’t have a business but business has you. If you are an experienced entrepreneur like me, then you know what I’m talking about.
Your goal from the start must have a business that makes money and gives you extraordinary quality of life. In that spirit, here there are only three simple basic steps that you must focus on:
1) Always stay focused on money. As they say in sports, “watch the ball”; And in our ball business is money. Follow your money and destination always to increase the company’s profitability when you streamline the operation. So; The first step is to map the money track and make sure there is no small hole on the ship. Small leak can make the biggest ship sink. Create careful analysis about where the money goes, to cents and where it comes from. You may need a bookkeeper at the beginning or a more experienced accountant to create your financial statements; But this one place you can’t be cheap. But anyway, make sure you have an accurate report and ensure it’s not a complicated report that doesn’t make sense to you. Place all your sources of income above. All of your expenses items in the middle. And then you can trace from where the money came from and where the money happened. At the bottom is an advantage. There needs to be a clear difference between fixed costs and variable costs. You need to make sure you save most of your spending variables and not repaired.
2) Every small to medium business must have a clear functional structure and in this functional organization each individual must have a clear and compact work description of the detailed procedures and protocols that they must follow. In this way organizational efficiency will be convinced and if there is a change in employees, the organization is not messy. Furthermore, if there are problems that have been identified, by following the procedure & protocol system that is enhanced and determined; Management can do shoot problems and identify exactly where in the process and by whom the problem has been made. Then you can decide whether it is a human mistake problem that causes problems or procedures & protocols that are wrong and may need a correction. In the last term, by changing procedures & protocols, future problems can be avoided.
3) Finally, it is very important that you do everything in business according to the reliable P & L (Untung and Loss Statement) that can guide you specifically for the correct answer. You need to know where to cut costs, reduce costs; Increase the sales and type of sale what is profitable maximally and less than value. You can also manage advertising and marketing, administrative fees and everything needed by business; All with careful views in P & L. There is no decision to be done without a clear understanding of P & L and financial statements. P & L like a map that must be followed by someone to pass through the forest. Running a business must be based on science and not guessing work.