Two weeks ago, I wrote in this blog that the chance of a recession being triggered by the COVID-19 as being “Probable.” This situation has changed very quickly. At this point, we are way past “Probable.” We are in the early stages of a recession. You heard it here second. The stock market, which is always about the future, was the first to tell us that a recession is upon us.
The questions, at this point and in my mind are, how bad will it be and how long will it last?
Businesses exist to make a profit. And price is a key component in profitability. Regarding businesses in the for-profit sector, it has long been said, “If there is no margin (no profit), there is no mission.” While other goals may exist, creating and sustaining profitability is critically important.
Outsourcing of various functions is not a new topic; it has been a trend for 20 years or more. It really started with the idea of sticking to a company’s ‘core competencies’ and outsourcing (or just getting rid of) things outside core competencies. What I’m talking about here is true outsourcing, not just making employees contractors to try and avoid payroll taxes and HR compliance issues.
Any function can be outsourced. I’ve heard of virtual companies that have only one employee, and that employee is the CEO and owner of the business. In the case I’m thinking about, the owner had outsourced product design, manufacturing, distribution, marketing, sales and accounting. I guess the ultimate step would be to find a company that offered outsourced CEO services and outsource that too.
Profits increase when you have engaged, passionate people on your team. Having the wrong people in those seats can be a barrier to growing sales and increasing the overall profit of your organization.
With the level of the talent available today in the marketplace, you can always replace someone if you don’t find the right fit the first time. After a quick hire, a simple plan of “wait and see for 90 days” seems logical with so many available. If the new person on the team does not perform in the first 90 days, terminate and hire the next. However, it's much better if you hire the right candidate from the start.
Much of the conversation focuses on how people can find a job. “How to get hired” is a question answered again and again. Employers still need to do their part, to hire the right people. Hiring doesn't have to be gamble. The right recruiting and selection process is one of the most important strategic plans your company needs to improve revenue and profits results exponentially.
Les McKeown, President and CEO, Predictable Success puts the responsibility of success on the employer in this Inc. Magazine article:
"It is time to lower the price." Competition, entering a new market, bad economy, and lack of success are all reasons you might have this thought. Is it worth the risk to lower price knowing it will impact your profit margin?
Moving forward, instead of lowering prices and firing staff, consider what it takes to increase profitability with SMART Revenue.
As your business begins its annual climb up the revenue mountain there are four steps that are essential to achieving profitable revenue growth.
Your company can increase its profitable revenue by working to maintain those clients who are your company’s BEST clients and targeting prospects who will become your BEST clients. Don’t waste your team’s time, energy and resources by keeping the wrong clients and targeting the wrong prospects. Hour upon hour will be devoted to keeping existing clients and gaining new ones, make sure they offer you the best opportunity for increasing revenues and profits.
Many business leaders often find themselves wondering why the clients that take up 80% of their organization’s time only generate 20% of their revenue or profit. It’s because they are focusing their valuable time, energy and resources on the wrong clients and prospects.
Wouldn't it be great to have a predictable revenue machine?!?
One where all of your sales opportunities go in one end, the machine does the work, and predictable revenue pops out the other end?
You can create your own.
Predictability is an essential component of ongoing of revenue generation and business growth.
Predictable revenue will improve cash flows, stabilize staffing levels, increase the value of a business over the long term, and give the business owner peace mind. Without predictability a company’s growth can be erratic causing problems with cash flow, productivity, staffing levels, debt servicing, budgeting, and more.
There are five steps that are essential to achieving profitable revenue growth.
Your company can increase its profitable revenue by working to maintain those clients who are your company’s BEST clients and targeting prospects who will become your BEST clients. Don’t waste your team’s time, energy and resources by keeping the wrong clients and targeting the wrong prospects. Hour upon hour will be devoted to keeping existing clients and gaining new ones, make sure they offer you the best opportunity for increasing revenues and profits.
Many business leaders often find themselves wondering why the clients that take up 80% of their organization’s time only generate 20% of their revenue or profit. It’s because they are focusing their valuable time, energy and resources on the wrong clients and prospects.