Margins for Profit
I was very recently consulted by several different contacts on my outlook for the global economy in the year ahead.
Whilst I do not own a crystal ball that I can stare into and say with absolutely clarity that the economy will improve or retract as the case may, I can however with total confidence say this- whether the economic situation moves up or down, there are always opportunities to be had, and profits to be made.
In a downturn, employers will be cautious in hiring, wage increments and Capital Expenditure(CapEx) and Operating Expenditure(OpEx).
As an employee in a downturn, this is an excellent time for you to prove your worth to the company. Focus on improving process efficiencies, reducing redundant manpower usage and unnecessary red tape.
Go attend training sessions and upgrade yourself.
In a growth spurting economy, find ways of further improving margins. Identify needs and focus on meeting them.
As an employer, it is a good time to look at your manpower allocation and gather your thoughts. Re-visit those long practiced traditions and examine them for continued relevance.
Can the resources be retrained to perform at a more intelligent level?
Can we automate some processes?
Can we do it in-house instead of outsourcing?
Or can we outsource non-core activities and focus on our objectives?
Find the bottlenecks that are holding you and your business from achieving that next level of accomplishment.
Then break tradition, make a decision and move in that direction.
ALWAYS remember to have short and long term goals! They can be vastly different targets, but must all align to the long term objective.
Many businessmen make the mistake of not varying their short term goals because they fear change may derail their long term objectives. To avoid having this problem, ensure you have a good communication plan mapped out to convey your change in goals to every individual in the organization. A well thought plan poorly executed is as equally bad as a poorly thought plan well executed.
Change, is always positive and is independent; not directly related to the direction of the macro-economy.
As a provider with a solution, opportunities always abound within the margins of change. Find that spot, make a mark and shoot towards it.
Remember that differences are always opportunities for growth.
Time for a radical change.
Are YOU ready?