Goals for your business are critical, otherwise, how do you know where you are heading? But, if you are not used to setting goals for your business, the first few times can be rather overwhelming. There is a lot of advice on what they should look like. The range of choice in targets and directions can be so overwhelming that you just never get started! This article walks you through a very simple way to get started with goal setting that will see 3 year, 1 year and quarterly goals set in under 1 hour!. Yellow Belt
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In a big business, the Chief Financial Officer (CFO) has the vital role of tracking what’s going on and using that information to recommend future strategy.
Most likely, you are too small to afford a CFO on staff at the moment!
You are missing out on the analysis and independent thinking that a CFO can bring to your business.
We provide the same CFO benefits at a fraction of the cost!
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The third of our signature 12Faces courses is a Growth Strategy Over One Year. This course builds on the rapid optimisation carried out during the course C2.0 Optimise Your Business Enterprise in 100 Days (Optimise100).
This Growth Strategy is designed to work with the various types of enterprise we service:
For-profit, Public Sector and NFP.
Each of these enterprises will likely want to grow something.
For Profit are interested in profit and/or revenue growth.
Public Sector and Local Government are interested in serving a greater number of clients better within their budget constraint.
NFP may want to raise more money to sponsor good works and/or service more clients within the available budget.
Generally, we speak of Profit in this course. And that is of interest even to organisations not seeking to maximise profit. These organisations will want to maximise growth while not making a loss; the other side of the profit coin.
Rather than write about the goals of each type of business each time, we generally refer to the process a for-profit business will follow. This is just as applicable to the various types of NFP.
To continue to grow, we discuss how to increase your revenue so that more money goes to your profit bottom line. Since this is a slower process, we will allow ourselves 12 months to achieve it. Nevertheless, these two combined are likely to more than quadruple the profit of your business in just 15 months.
The techniques discussed in this training course, “Grow365″ are designed for growth businesses. They might be a relaunch of an existing business or a startup.
This introduction to the course outlines the process with links to relevant articles. The next stages links are also at the bottom of this article.
Your enterprise may be growing at present. But, you can be certain that innovation and disruption will erode what have been successful services or products. We see this at work all the time.
Years ago, videos came on a cassette tape. Then DVD’s and now streaming services. Your enterprise will decline without innovation. This innovation program will keep your enterprise thriving.
Innovation is a longer term project. Hence, Innovate1000. “Double Your Growth Through Innovation in 1000 days (3 years). Achieve this through innovative new products.
This is a blue belt topic.
Increase Your Productivity and Sales By 16 Times!! The 80/20 Principle asserts that a minority of causes, inputs or effort …
Price is a major determinant of the profitability of your business! A price change of as little as 1% can often lead to profit increases of up to 11%. A consultant study across 1,200 major businesses found that a 1-2% increase in price, assuming demand remained constant, on average would have increased the company’s profit by 11%. Clearly, this could be a quick boost to your company’s profitability.
For a quick example of the impact of a price change, consider a business turning over $500,000 per year. Let us further assume that it makes a 5% profit on that, which gives it a profit of $25,000. If it increased its price by 1%, and assuming demand remained constant, that would lead to an extra $5,000 in income. This extra $5,000 over the original $25,000 is a 11% improvement. This is a yellow belt article.
The Theory of Constraints (TOC) is an important optimising technique that focuses on improving the throughput of work at the (usually) single bottleneck or constraint in the workflow.
This Skills Module draws together a number of the 12Faces articles on the subject. One research project demonstrated that 89% of improvement in a manufacturing business came from the application of TOC. Yellow Belt.
This is 12Faces equivalent of Godzilla meets the Hulk! In our language it is the mixing of the 80/20 Rule, which promises up to 16x growth and the Theory of Constraints (TOC) approach, which describes the most liberating aspect of your production line.
Many businesses will benefit from having a Business Plan.
They can be complex but it is possible to structure a fairly straight forward plan that suits your business.
We offer a Yellow Belt (beginner) introduction and later some more advanced Blue Belt (intermediate) suggestions.
Eight Types of Waste
The well-known Toyota car company identified seven types of waste that had an impact on Productivity and Profit. An eighth has been added more recently. By gradually reducing these wastes, you can improve the Productivity and Profit of your business. In Japanese, this is referred to as reducing “muda” (pronounced Moo-da). This article discusses how these types of waste might show up in your business; and what to do about them. Waste reduction is an ongoing and probably never ending process. This article gives lots of examples of waste in each of the categories. To be most effective, you should tackle the largest waste items first so as to make the largest gains first. Waste reduction is a team effort ideally as those on the front-line probably already know what is wasteful; they are just not empowered and trained to combat waste.
Read this if: you are working on making your business operate more efficiently.
Relates to: 80/20 Rule for finding the biggest issues, Kaizen for incremental improvement, Constraints and bottlenecks. Our Campaigns; Optimise100 and Grow 365.
Degree of Difficulty: Yellow (entry level) . The Skills Module on managing waste to improve your Profit is not hard to do but requires perseverance.
Stress is All Around Us. There is no doubt that many Owner/Operators work under considerable stress. Sometimes this stress is constructive because we are excited and challenged by growing the business and/or making it more profitable.
But all too often, it comes about because events just overtake us and we find ourselves fighting off one alligator just to get attacked by another. This stress is not healthy or helpful. It leads to all sorts of physical upsets and is also often damaging to your relationships.
As a business manager, there is always more to be done than you possibly have time for. If you want to work reasonable hours and have a life outside the business, you will have to prioritise what you do. This article describes several techniques that can help you reduce the often seemingly overwhelming number of things you have to do to a more manageable approach. If you don’t learn to manage the workload, you will find yourself flitting from one task to another and not getting much of importance done. This article is a Yellow Belt tool to help you manage all the “stuff” to do.