Welcome to Amanda’s semi-regular blog, where she writes about how to improve business profitability
The grass isn’t always greener
When you’re stuck in the 9-5 grind of a day job, particularly one where your time is charged by the hour, it can seem very appealing to jack it in and become self-employed. That feeling that you could be working for yourself is alluring – you could charge less, and still be better off.
I wonder how many people in this situation have read The eMyth Revisited by Michael E Gerber? If they have, they might be more cautious about taking the plunge to self-employment or a freelance lifestyle.
Stuck prices requires a leap
Many years ago, I ran a software development house. I and a team of 4 other developers wrote and supported bespoke software for a range of clients. We were writing what would now be called an ERP system, without the finance bit.
Around the time my second son was born, over 12 years ago, the company finances were in dire straits.
What’s your pricing strategy?
Peter Cook, CEO of Thought Leaders Business School say that “we are all dysfunctional about money.” I think this is worth bearing in mind when it comes to working out pricing.
Do you have a team of sherpas?
One of the challenges of growing a business is ensuring that the staff you employ are as productive as you used to be when you were delivering the products or services. I know when I used to run a software company, we were never as productive once I stopped writing code. There are so many reasons why this might be the case, and one of these lies in the engagement of the people in the business.
What promise do you make?
Any business that has ever traded, will be known for something. Often, they are not known for the right thing. Your promise is at the heart of everything you do as a business. It is why people pay you; a form of contract, explicit or implied, that describes what you are going to deliver. If you live up to that promise, consistently, you will be loved, if you fail, it will result in unhappy customers, staff and suppliers.
Are you a pyramid, a frustum or an irregular polyhedron?
The most productive companies understand their economic engine as Jim Collins refers to it, and have it turning faster and faster. Those running them can make decisions quickly and are energised by their businesses rather than shackled by it.