Q: I have a small business. I have reduced my cost, compared my activites to my goals, reviewed my budget and what I enjoy most in my career and what I struggle with to do well or in a timely fashion. After doing all of that, I am again faced with more decisions that include cutting cost, moving my business in a different direction, or perhaps even downsizing both my services and my staff. And it seems whatever I do to cut cost will still have a negative impact on the economy. Where should I look for advice on cutting cost? It looks like this is a must for 2009.
A: According to the Drucker Institute, cutting cost is not the only answer. In a recent article featured at http://www.druckerinstitute.com/ this very topic was discussed.
Peter Drucker was very aware of the need for keeping a lid on costs. He taught that enterprises big and small should always be asking themselves not how to make a particular aspect of the business more efficient but whether it should exist at all. The question should be: “Would the roof cave in if we stopped doing this work altogether?"
And if the answer is “probably not," you should consider eliminating the task, product or service. This line of questioning should be a regular part of your business plan and reviewed often- not just when finances are tight.
It is a mistake to think that all of what we do in business is noteworthy. In fact some activities need to be measured with a satisfaction scale in mind. If the only enjoyment is relief when it is over, reconsider other ways to export, eliminate or replace the activity with another method.
I suggest that you consider what the original intents was for that particular activity, and then consult with others professionals who have similar goals and see how they are meeting those needs.
Always remember, your business is unique and your company may have different skill and abilities but many activities-regardless of the business must be completed to run a business.
Once you know what you want to accomplish, investigate specialized training for you or someone on your staff to become the expert at that task or consider hiring or contracting out those tasks to those already proficient and can make your business run smoother. If someone is already offering the service or product, meet with them, discuss your situation and see if there is a cooperative opportunity.
That can be boost for you, other businesses and the economy. Not everyone has the same gifts or abilities-accept that. Your best financial move is to recognize what you are great at doing and find people who are great at what you need help with, and then find a way to work as a team!
Favorite quote: "Efficiency is doing things right; effectiveness is doing the right things." Peter Drucker
You never really find it- you can take it! Everyone loses it, seldom does anyone find it and no one can make it for you- time! Pause please and thank someone for their time!
A: According to the Drucker Institute, cutting cost is not the only answer. In a recent article featured at http://www.druckerinstitute.com/ this very topic was discussed.
Peter Drucker was very aware of the need for keeping a lid on costs. He taught that enterprises big and small should always be asking themselves not how to make a particular aspect of the business more efficient but whether it should exist at all. The question should be: “Would the roof cave in if we stopped doing this work altogether?"
And if the answer is “probably not," you should consider eliminating the task, product or service. This line of questioning should be a regular part of your business plan and reviewed often- not just when finances are tight.
It is a mistake to think that all of what we do in business is noteworthy. In fact some activities need to be measured with a satisfaction scale in mind. If the only enjoyment is relief when it is over, reconsider other ways to export, eliminate or replace the activity with another method.
I suggest that you consider what the original intents was for that particular activity, and then consult with others professionals who have similar goals and see how they are meeting those needs.
Always remember, your business is unique and your company may have different skill and abilities but many activities-regardless of the business must be completed to run a business.
Once you know what you want to accomplish, investigate specialized training for you or someone on your staff to become the expert at that task or consider hiring or contracting out those tasks to those already proficient and can make your business run smoother. If someone is already offering the service or product, meet with them, discuss your situation and see if there is a cooperative opportunity.
That can be boost for you, other businesses and the economy. Not everyone has the same gifts or abilities-accept that. Your best financial move is to recognize what you are great at doing and find people who are great at what you need help with, and then find a way to work as a team!
Favorite quote: "Efficiency is doing things right; effectiveness is doing the right things." Peter Drucker
You never really find it- you can take it! Everyone loses it, seldom does anyone find it and no one can make it for you- time! Pause please and thank someone for their time!
Goals for 2009- enjoy some sand-somewhere , other than in your truck or the bottom of your stored away vacation suitcase!
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