Keep Your Team in The Loop
As we get closer to the new year, many business owners are gearing up for a profitable 2020. One thing that contributes to the next year’s success is analyzing the past year’s mistakes. You can’t fully know where you’re going unless you know where you’ve been.
Finding the flaws
An important area to detect are the profit losses that are hurting your business’ ability to earn its full potential earnings. This is especially important if you’re trying to finish the year out with maximum profits. Based off your strategic plan and your discovery of where your business isn’t thriving, you can work to extinguish flaws such as:
- Poor customer service: employee interactions with clients producing negative impressions of the company or giving false information.
- Pricing that discourages clients from using your company or brings inadequate earnings.
- Issues that create inefficiencies in the supply chain.
Employees can be a valuable resource trying to find flawed areas in the business. You can ask employees at different levels where they see problems. This will help you allocate a negative dollar amount to the flaws that are hampering your business’ success. Once you compile this information and insert it into your income statement for the year, you’ll be able to have a full view of how the negative amounts are hurting your net profit.
Rectifying the mistakes
Taking the steps to correct the flaws within the business does take work. However, once all of the mistakes have been put right, you can implement plans within your team to ensure the flaws don’t continue to be issues.
Update the plan. Sit down with your management team and key employees to develop achievable profit-building goals. You can assess how much these goals will add to your net profit after you estimate the cost each one will be and potential income it can bring in.
Establish leaders. Each goal should have its own leader assigned to it. Things will slip through the cracks if there is any question about who the leader is and what each person’s role is in achieving the company’s goals.
Clear communication and general agreement. Every goal should be fully explained to your employees. Each member of your team must understand the way you intend to grow your business and believe in it if you are to be successful in reaching your goals.
Increase your profit
With your profit-increasing goals in place, your team properly on board, and flaws minimized, your company now has the ability to grow. We can help you find the problem areas through financial analyses and help create achievable goals that are best for your company.