How's your vision? 20/20? Not all of us have perfect vision, but in business, we have to see clearly enough to determine what to do when the lines are blurred.
Just like going in for an eye test to determine if you need glasses. The doc has to assess your "current situation", and thus the "which is clearer, this, or this" routine begins as you squint your way through the faking-you-can-see-better-than-you-really-can process. In business, fake-it-till-you-make it only works so far before you realize you have to determine your current situation to lay out strategies for implementing changes for the good.
Staying with the eye test analogy for a moment, Say your vision is 20/40 and glasses or contacts will get you to a perfect 20/20 - you've just established a goal: perfect vision.
Same is true in business. Think about it. You can't know whether you've arrived at a specific destination unless you know where you are starting from.
By the same token, before you begin implementing profit-boosting strategies in your business, you need to know where you are now to determine where you are going. Your ultimate goal, of course, is to reach a specified goal, with the destination being a significant increase in your profits.
To begin, smooth out the "map" of your "journey to greater profits" and look at where you've been. To do this:
* Revisit your vision for the company and see if any adjustments need to be made
* Determine if your mission is still the same. If not, adjust that as well.
* As you focus your attention on specific strategies you have in place, envision a new goal.
Think of it as "writing a prescription" for your success. Start with two easy processes:
1) Conduct a survey on your Average Dollar Sale
2) Conduct a survey to determine your Margins
Do the Average Dollar Sale survey first, followed by the Margin Survey. These surveys take out all the guess work. Clearly, your surveys should be designed to reflect the type of business you conduct. The key information needed on your Average Dollar Sale survey is:
1) The date
2) The person's name who's handling the transaction
3) The Customer # and dollars they spent
4) A Daily Summary
5) Number of customers
6) Total dollars spent
7) Average Dollar Sale for the Day (Total Dollars + the Number of Customers)
Once you evaluate the Daily Average Dollar Sale, move on to the Margin Survey. This survey will contain:
1) The date
2) The Department or Product Range
3) The Item
4) The Margin
It's all a part of tracking and measuring, just like taking an eye test is all about tracking and measuring your vision. Losing sight of your goal can lead you astray, hurting the growth of your business.
Having a clear picture of your Average Dollar Sales as well as your Margins is important in that it helps shift attention away from turnover and onto profits. A business coach can help you chart and track these measures.
Hopefully the blurred lines between having a vision and seeing clearly have been defined.
See the difference?
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As a Master Licensee for ActionCOACH, my coaches help business owners succeed by providing each with proven strategies to move their businesses forward. My 25+ years of domestic and internation business experience includes business ownership. Email: peterwilliamson@actioncoach.com
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