Often when thinking of improving profitability, many business owners immediately think of cost cutting. They never immediately think of anything else, apart from cutting costs. This is probably because they do not spend enough time analysing what is happening within the business, to make a more strategic and meaningful decision.
I was once tasked with helping to improve the profitability of an organisation, there were several lessons learned from the experience. The first, is that despite the fact that it was successful originally, with time, the market had changed and the product was no longer relevant for some of its customers.
This can be quite a difficult thing for business leaders to appreciate – but why?
Emotional ties to products or services can be extremely strong, particularly if the original propositions were designed by the owner. Emotions has a tendency to blind reality
Business owners tend to spend too much time, working inside the company, dealing with minutiae and therefore lose sight of the customer needs.
By spending too much time within the business, it also restricts the amount of time they spend communicating with and understanding what is happening with their customers’ business environment.
By understanding customer needs beforehand, business owners can plan and arrange resources in a timely manner, to ensure that their services are relevant and introduced
for further information contact email@example.com