Four low-cost ways to improve your business today

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Four low-cost ways to improve your business today

Source: The Business Owner – March/April 2009
By: Dave Perkins

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Money’s tight? Here are four things you can do to improve your business without spending a dime.

Find Out What Your Customers REALLY Want. To build a, profitable business, figure out what your customers really want (i.e., things that add real value ) and eliminate the rest. All the other stuff just consumes time and money without adding value. For example, CarMax zeroes in on what car buyers want—to find cars fast. So CarMax has built its business around providing a wide selection of cars at each location, helping buyers quickly find what is right for them, and then completing price negotiations and purchases fast. According to Ron Wince, CEO of Guidon, CarMax has reduced the typical car-buying experience from five hours to one. Wow. Another example is Hertz. It’s all about speed. Customers will pay more to save time.
Help Your Employees Find What Customers Want. After all, it’s front-line employees who engage with customers, so they’re in the best position to assess your customers’ wants and needs . Try what Ron Wince calls “huddles,” brief brainstorming sessions about the customer experience. Do these periodically, and over time, you’ll improve your entire team’s focus on what your customers want and need.
Target Things That Consume Cash. The first place to look is the asset side of the balance sheet. If balance sheet asset values are rising, cash is being consumed. Typically, it’s inventory and receivables, so find ways to increase inventory turnover (i.e., get by with lower levels of inventory on hand) and speed the collection of receivables (i.e., negotiate shorter terms, invoice faster, require on-time payment or offer a discount for early payment, improve your credit screening to reduce bad debt loss).
Strengthen Bonds Among Your Employees and Between Them and Your Firm. The result will be happier, more loyal, and more productive employees. Who wouldn’t want this? Borrow a page from Bob Mackasek’s* playbook. He runs a large limousine company in New York City. His drivers are of diverse backgrounds and cultures. They spend most of their time isolated from one another (driving limos). Fostering inter-employee relationships was a real challenge, but Mackasek is convinced that his efforts have been instrumental in growing his fleet to 210 vehicles. What is his secret? Employee appreciation days, where managers cook for the employees. Family picnics and soccer games. Good working conditions. Annual employee awards dinner. Getting them all together periodically for fun and fellowship, publicly recognizing high levels of performance and showing genuine appreciation.