Plug These 8 Leaks in Your Business and Add Money to Your Bottom Line
Even the most successful leaders and entrepreneurs can have holes, or leaks, in their business model or strategies. That means that there are components of their business that are being slowed down or aren’t running as efficiently as they could be.
These leaks are often not obvious just by the debit and credit statements of a business, making them potentially dangerous. The biggest challenge for business leaders is to create a system that allows them to correctly identify the leaks to discuss and address the best way to fix them. For many businesses, fixing the leak can mean opening the door to a whole new set of opportunities for growth and productivity.
So what are your potential leaks?
The most important step towards maximizing your business’s potential is figuring out in what areas that potential is being wasted. Once you identify the leak, you can take the proper steps to address it and start reaching your full potential as a business. Take a look at some of the most common areas where companies falter and ask yourself if your business is leaking potential profit:
Are your employees as productive as they could be?
Don’t settle for—or worse, choose to hire—”B” and “C” employees. You should always hire exclusively “A” players. Hiring “B” and “C” employees may seem like a money-saving opportunity at the time, but they will end up wasting time and resources to produce less effective work. To solve this problem, you should cut the cord and replace your inferior performers with those who can do the job more efficiently, rather than waiting it out to see if your poor performers can improve. “A” players are those employees who achieve reasonable performance standards and live your core values. There is no reason why all of your employees can’t be an “A” employee.
Are you motivating your employees enough?
Sometimes, it isn’t a question of mediocre employees, but of poor leadership. As a leader, it’s your responsibility to keep your employees engaged and motivated in their positions. Studies show that, on their own, only 30% of employees will go above and beyond. The other 70% require the work environment and management systems that will lead them to success. If you know you have employees that could be giving you consistently higher performance, switch your focus to their leaders.
Are you losing focus on the end goal?
It is very easy to get lost in the weeds of business when short-term issues and unexpected obstacles start to get in the way of your ultimate priorities. For this reason, it is essential to have a long-term strategy to accomplish your goals and to encourage your employees to set their sights on these goals as well, rather than to spend all of their energy on tactics that only solve day-to-day problems. This attitude will help streamline the energy of your workforce so that people are being productive rather than busy just for the sake of being active. When everything is important, nothing is!
Are vacancies leading to lost performance?
If you have empty spots on your team, it’s essential to devote some resources to finding strong employees to fill them. Vacant positions will cause other employees to pick up the slack, which will lead them to be overworked and unmotivated—whereas hiring someone strong and effective will end up saving your company money.
Are you having trouble retaining employees?
Retention issues are an obvious problem because every time you lose an employee, you have to spend more resources on finding and training a replacement. It’s easier and less costly to retain a happy employee who could have helped you profit during that time. Employees leave for various reasons, such as work environment, compensation, poor benefits, or poor leadership. One of the best ways to handle this problem is to ask your employees what is important to them and create an environment where they feel respected and valued.
Are you missing out on profitable opportunities?
A good business strategy is key to maintaining an edge over your competitors. Determine what difference your products, services, or other offerings provide, and find the best way to demonstrate that to your target customers. If you’ve found your hook, new and more loyal customers won’t be far behind.
Are you creating a loyal customer base?
Sometimes, it isn’t always about finding new customers, but rather, keeping the customer base you already have. When you devote resources to keeping these customers happy and active, not only will they continue to buy from you, but they recommend you and be brand ambassadors as well, which is essentially free marketing for your business.
Are you making the same mistakes over and over?
If you take a step back and analyze the processes that drive your business, you will figure out which mistakes, if any, can be avoided. If the same mistake is repeatedly happening, maybe there is a flaw in the system that can be addressed to prevent the error from occurring in the first place.
One thing to remember when coming across leaks in your business is this: There is nothing wrong with finding them. All businesses have leaks to varying degrees. The important thing is taking action and plugging up the leaks when you do find them.
If you feel like you might need assistance in quickly finding these leaks and plugging them up even quicker, we’d like to invite you to schedule your FREE 30-MINUTE CONSULTATION with one of our Activate Group expert coaches. We bring proven tools that lead to new ways of thinking—and plugging leaks—leading to better results.