YOU MUST KNOW HOW TO RUN YOUR BUSINESS
YOU MUST KNOW HOW TO RUN YOUR BUSINESS RIGHT
SIGN UP FOR NEWSLETTER FROM PRESITGE BUSINESS COACHING

YOU MUST KNOW HOW TO RUN YOUR BUSINESS RIGHT

YOU MUST KNOW HOW TO RUN YOUR BUSINESS RIGHT

YOU MUST KNOW HOW TO RUN YOUR BUSINESS RIGHT

If your business is to be a success and YOU are to become one of the ‘10% CLUB’, YOU must KNOW how to run your business RIGHT.

It constantly amazes me that many small and medium sized businesses have such a poor knowledge of how to RUN their businesses RIGHT and such businesses ALWAYS perform POORLY.

Always!

Often a poor performance can be converted into a massive SUCCESS by simply UNDERSTANDING how to run a business MUCH BETTER.

It is often as simple as that!

Each Business Can Be Divided Into 7 Parts

Each small and medium sized business can be divided into the following SEVEN GENERAL PARTS:-

  1. CUSTOMERS
  2. PRODUCTS
  3. MONEY
  4. MARKETING, BRANDING & SELLING
  5. CUSTOMER SERVICE
  6. BUSINESS RUNNING & BACK OFFICE
  7. EMPLOYMENT

Every business has ALL of the above, unless YOU have NO EMPLOYEES.

Every Part Of Your Business Has Equal Importance

Every PART is as important as the other PARTS within the business. If YOU are to OPTIMIZE your BUSINESS SUCCESS and your BUSINESS PROFIT every PART must be RUN to its BEST.

If ONE PART is run LESS WELL, then this will affect the WHOLE BUSINESS.

You Must Know How To Run Each Part To Optimize Your Business

If YOU want your business to run to its OPTIMUM, YOU must UNDERSTAND how to RUN EACH PART OF YOUR BUSINESS.

Let me ask YOU these 22 questions:-

  1. Do you REALLY understand your target customers and what they REALLY want to buy from you and what they want to pay YOU?
  2. Do your REALLY understand the products that your target customers need and are your products RIGHT for your customers?
  3. Are the sales of your products increasing, year on year, and do you REALLY understand how to keep your sales growing?
  4. Do you REALLY have REAL control of the money in your business?
  5. Do you REALLY know how to control the margin in your business and understand how to keep it optimized?
  6. Do you REALLY have absolute control of your costs and know how to keep these minimized?
  7. Do you REALLY understand how to control your cash-flow and keep your business cash rich?
  8. Do REALLY understand how to effectively reach your target customers with your marketing?
  9. Is your marketing REALLY effective and are you REALLY reaching your target customers with it and is it working?
  10. Are you REALLY getting a real return on your marketing expenditure and REALLY seeing real growth in your sales as a direct result of your marketing?
  11. Are you REALLY successfully building a STRONG brand that is recognized by your target customers?
  12. Do you REALLY understand your COMPETITORS and what they are doing & do you REALLY know how to compete within them in your trading market REALLY EFFECTIVELY?
  13. Is your customer service REALLY superb?
  14. Is your customer experience REALLY superb?
  15. Are your customers REALLY happy and do they return to buy more from you, time and time again?
  16. Do you REALLY have an army of loyal customers and do these customers spread ‘word of mouth’ about your business?
  17. Is your back office running REALLY effective?
  18. Do you REALLY have fantastic systems in place to control all parts of your business?
  19. Are you REALLY using digital technology to the full & optimizing its effects?
  20. Do you REALLY know how to employ the best employees for your business?
  21. Do you REALLY know how to train your employees really well and do you REALLY know how to manage them right?
  22. Are your employees REALLY a real asset to your business & are they REALLY making a real contribution to your business as a whole?

I could have asked YOU many more questions, but these 22 are arguably the most important questions to ask anyone running a business.

You Must Answer These Questions Honestly

Try answering these questions REALLY honestly. If YOU can honestly answer a BIG ‘YES’ to each one, then YOU KNOW HOW TO RUN YOUR BUSINESS RIGHT.

But if one or more questions get a ‘NO’, then YOU must address the aspect raised in that question and turn it into a BIG ‘YES’

It is important that every PART of your business must RUN RIGHT.

You Need Smart Business Thinking

YOU need SMART BUSINESS THINKING about the RUNNING of your business, if YOU are to be one of the ‘10% CLUB’

JOIN THE 10% CLUB & BECOME ONE OF THE MOST SUCCESSFUL BUSINESSES IN THE UK

SMART BUSINESS THINKING MUST COME INTO EVERYTHING THAT YOU DO IN YOUR BUSINESS

HAVE SMART BUSINESS THINKING & SMART BUSINESS ACTIONS

If you wish to discuss this with me more fully, please email me at Robert@prestigebusinesscoaching.co.uk or leave a comment below.

SIGN UP FOR NEWSLETTER FROM PRESITGE BUSINESS COACHING

How Healthy Are Your Profits

How Healthy Are Your Profits?

How Healthy Are Your Profits?

How healthy is your business?

Are your sales rising?

Are your margins good?

Do you have control of your costs?

Are your Profits growing?

HOW HEALTHY ARE YOUR PROFITS?

If your sales and profits are growing then you should have a healthy business. But if your sales and profits are flat or are decreasing, then your business is not so healthy and you need to take action.

In such a situation, your business needs a complete re-think –  you need to re-think everything within your business, starting with FOUR major areas:-

  • Your Products
  • Your Customers
  • Your Margins
  • Your Costs

You should ask yourself questions about your products:-

  • Are your products matched exactly to the needs and wants of your customers?
  • Do your products bring real benefits to your customers?
  • Do your products make the lives of your customers better?
  • Are your products priced right to give value for money but also a good margin?
  • Have your product sales dipped in the past 12 months and, if so, by how much and why?

You need to sell a high number of your products to generate high sales that keep growing, but you will only achieve that if your products match exactly the needs and wants of your customers.

You should ask yourself questions about your customers:-

  • Do you understand fully who your target customers are & everything about them?
  • Do you have an army of customers that is growing?
  • Do your customers return to buy more from you?
  • Do your customers tell their friends about you?
  • Do your customers get a good customer experience from your business?
  • Has your customer numbers dropped in the past 12 months and, if so, by how much?

It is imperative that you understand who your target customer is and you understand everything about the needs and wants of that customer –  then you should be able to sell them the right product and achieve a large army of customers and keep growing that army.

You should ask yourself questions about your gross profit margins:-

  • Is your margin sufficient to pay your costs and to give you a good net profit?
  • Are your selling prices lower than the equivalent charged by your competitors?
  • When was your last selling price increase?
  • Are you paying too much for your products?
  • Has your margin slipped in the past 12 months and, if so, by how much?

It is important to understand how your margin affects your net profit –  it must be large enough to comfortably pay all your costs and to give you a high net profit.  Are your prices too low and if you were to increase them, would sales slip?  In my experience, if you have a strong product offering, price increases should not affect sales.

You should ask yourself questions about your costs:-

  • Do you have a clear understanding of all your costs?
  • Are you as efficient and lean as you could be?
  • Do you know which costs have increased over the past 12 months, and by how much and why?
  • Are there purchases being made that could be trimmed or eliminated?

It is very easy for costs to creep up and to not be noticed. You should look at each cost and analyse each one and see where quick savings can be made.

From experience, doing this exercise can often generate significant changes to the health of a business. Even just a 10% increase in sales, a 2% increase in margin and a 10% decrease in costs can have a dramatic effect on the net profit, often adding as much as 40%  –  now that is surely worth having?

Have a think about this now!

This is a very quick snapshot of possible remedies for an unhealthy business, but if you would like some more advice, email me now: Robert@prestigebusinesscoaching.co.uk.

Or leave me a comment below.

THINK SMART, ACT SMART!

SIGN UP FOR NEWSLETTER FROM PRESITGE BUSINESS COACHING

Don't Make The Same Mistake As Marks & Spencer

Don’t Make The Same Mistake As Marks & Spencer

Don’t Make The Same Mistake As Marks & Spencer

How well do you know and understand your customers? –  hopefully better than Marks and Spencer!

Early in January 2016, Marks and Spencer reported poor non-food sales, while their food sales did really well.  Here, Marks and Spencer demonstrates brilliantly how important it is to KNOW EXACTLY WHO YOUR TARGET CUSTOMERS are, if you are to optimize your sales.

DON'T MAKE THE SAME MISTAKE AS MARKS & SPENCER, prestigebusinesscoaching.co.uk/blog

On the food side of the business, the products offered are exactly what the customers want from Marks –  the business knows and understands their TARGET CUSTOMERS and they know what PRODUCTS these customers want.  And, through this knowledge, they are able to target these customers well with their marketing.  The result is and has always been good food sales.

NON FOOD SALES ARE POOR!

But on the non-food sales, Marks does not enjoy the same success and the reason is very simple  –  they do KNOW and UNDERSTAND who their TARGET CUSTOMERS are.  Women’s clothes has always been the major part of non-food sales, but there is a real disconnect here in how they approach this, the biggest part of their market.  For years, the TARGET CUSTOMER has been the woman over 55, yet they don’t offer the PRODUCTS that this age group want to buy.  Instead, they offer clothes that are based on the fashions from the ‘catwalk’ aimed at younger women.  What’s more, their marketing reflects this, too  –  it is targeted at the younger woman.   This age group tend not to shop at Marks and Spencer, preferring outlets such as Next. And, even those of this age group who do shop in Marks and Spencer say there is nothing for them there to buy.

One BIG FACT that Marks and Spencer seem to miss is that daughters do not buy clothes in the same shops as their mothers buy their clothes from. Marks should let Next deal with the daughters, while they supply their mothers.

When you look now at the clothes offered to women by this business, I think there is a vast and confusing choice, which they are hoping will appeal to women between the ages of 20 upwards.

I am not the only expert to say this, most retail industry experts have the same view. If Marks and Spencer were to accept that their TARGET CUSTOMER is the over 55 age woman and accept they must offer clothes that this age group want to buy, that would be a good FIRST step.   But they have to go further  –  they have to engage with these women, very comprehensively, and ask them EXACTLY what they want from Marks and Spencer.

Then, when they offer the clothes that they are told to supply, customer numbers would improve and sales would recover, too.

THEY NEED TO RESEARCH HEAVILY

I think if they were to RESEARCH heavily what this age group want in terms of lifestyle clothing, they may well find that women in their early 50‘s and 40’s would also buy these clothes, too, and this would still give them a very broad CUSTOMER TARGET range, but not as broad as what they are offering now. The result would be a much better shopping experience for their TARGET CUSTOMER with a smaller, less bewildering range of clothes aimed at a smaller group of customers.

YOU MUST BE DIFFERENT

YOU MUST BE DIFFERENT TO MARKS AND SPENCER –  YOU MUST KNOW AND UNDERSTAND YOUR TARGET CUSTOMER.

Then, from that UNDERSTANDING, you must ensure your PRODUCTS are exactly what your TARGET CUSTOMERS NEED and WANT and you must ensure your MARKETING is TARGETED exactly at those TARGET CUSTOMERS to tell them about you and your business.

  • KNOW & UNDERSTAND YOUR TARGET CUSTOMERS
  • SELL THEM EXACTLY WHAT THEY WANT & NEED
  • MAKE YOUR MARKETING TARGET THESE CUSTOMERS

This is the SMART way to do business –  but, what amazes me is that Marks and Spencer are not the only ones to make this BIG MISTAKE  –  don’t let that be you.

THINK SMART, ACT SMART!

SIGN UP FOR NEWSLETTER FROM PRESITGE BUSINESS COACHING