What happens when you apply the 80:20 rule to the actions that must be completed to achieve stellar revenue and profit growth?
These Results:
Extraordinary profits
Harmonious work environment
Continual positive growth in revenue and profits that far surpasses your competition.
How do you achieve these goals?
Take a look at how most companies are run and don’t do what they do. People in most companies spend the majority of their time on activities that have little or no impact on building revenue and profits.
Your Focus!
First there are only five (5) areas of business that need your attention. Hold out your hand and look at your fingers and thumb – 5. Now follow with me on this because I am not in a room with you to reinforce the point. Hold out your hand and assign each of the (5) pillars as follows:
1.Sales – thumb
2.Gross Margin – index finger
3.Expenses – your “flip em” finger
4.Working Capital – next finger
5.Employees – pinky
80% of your time as an owner or CEO should be spent on these 5 pillars and 80% of the 80% should be spent on Sales (includes PR, marketing) and Gross Margin – the first two. I will add that it is not just the current day’s or week’s performance. As founder you are the leader of these organizational divisions and most of all you are responsible for the strategic expansion of the business.
Normally there are minimal issues with managing liquidity and if any area of expense begins to be out of balance, it doesn’t hurt much while you are bringing it back in line.
When you are achieving extraordinary sales and gross margin, everyone wants to work for you. Of course there is a very precise technology in hiring the right people and having them become successful.
Again there is a precise technology to be used in each of the five pillars that is outside the scope of this article. However, if you focus on marketing, PR, sales and margin you will likely be doing very well while you fine tune the entire organizational structure toward your perfect business model.
Nearly every article published at www.stevepohlit.com expanded upon the management of components of the five pillars. In most cases, the information contains practical advice that you can implement beginning today.
I have found that if the concepts are not actionable quickly and do not yield positive results quickly, people lose interest. It is no different than an exercise program.
If physical exercise is too rigorous, too demanding or takes too much time, it will not be sustained over time. Running a company is no different. The process must result in continual positive feedback as to progress toward achieving measurable goals.
Right now list the top 3 issues that are holding you back from making breakthrough profits in your business. Then start devoting at least 80% of your time solving those three issues. Once solved, do it again and keep doing it. Simple stuff.
For Your Success!
Steve Pohlit, Managing Partner
Steve Pohlit International LLC
Results Guaranteed Coaching and Consulting
Ph 727-587-7871
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Steve Pohlit, International Business
Turnaround and Real Estate Investment Coach