Project 3

There are only three reasons to take on a project
1. Increase revenue [sales ]
2. Reduce costs
3. Solve operational blocks

Anything else and well there is a good chance, vanity is at hand. You are in business to be profitable and successful. If not, it folds. These three stumbling blocks are what you need to be vigilant against.
1. Lack of sales
2. Cost overrun
3. System failures

Once you know which area is causing you sleepless nights, then you can initiate a project to solve the challenge. Kinda sounds simple, yes, but the number one reason a business folds is lack of sales. Not enough money coming in to pay the bills.

Sometimes the sales are good, but the profit margin sucks and your back is against the wall. Well you need to look at your costs. You need to dig deep into the middle of your accounts and see where the excess is and trim the fat. Sometimes it can be as simple as a price being locked in for too long a time. Whatever it is dig deep.

Then there is the old nugget, " a sale is not a sale until the money is in the bank ". Yes, your credit control may not be as solid as you thought. If your aged debtors list is running above 30 days, you might want to address this. Maybe there is too long a gap between an enquiry and your sales rep meeting the customer, leading to a lost sale. Or your time from order to delivery could be outside of what is the norm in the industry you are in. This could go against you.

For every challenge, there is a solution. Before things get out of hand, have a look at the three areas above and you might see the way to take action and solve your challenge.

To your success,
Colin Myles
Author & Listener

" The aim of the wise is to avoid pain "   Aristotle

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