Adjust to Changing Conditions

A simple saying –  “Complain not about the wind. Adjust your sails.” – offers great business advice for Entrepreneurs.

In this troubled economic times and uncertainty, it is very easy to complain about all the things that are preventing Entrepreneurs from succeeding. Some of the issues faced by Entrepreneurs including cash shortages, employee layoffs and poor morale, unsustainable overhead and fixed expenses, misaligned ratios of variable expenses to revenues, customer and product/service issues, high debt levels and so on are ripe topics for complaining.

Losers will take this opportunity to complain and find excuses to rationalize their failure, just as a poor sailor frets about the winds.

Winning Entrepreneurs and leaders, instead, adjust their sails to move forward on a steady course. Finding ways to increase cash flow; having employee work-sharing programs and non-monetary motivational programs to boost morale; reducing overhead and fixed expenses; realigning ratios of variable expenses to revenues, customer partnerships and product/service improvement initiatives; and restructuring high debt loads are all positive ways to adjust the sails.

What would you rather do? Complain about the winds or adjust your sails. Do the Right Things!

Ravi Patel

http://www.patelCFOservices.com

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Letting Customers Go

Should you let your customers go?

Some might ask what kind of question is that? Why would someone think of getting rid of their customers?

While the old saying “the customer is always right” might be thrown around, it is not necessarily true that all customers are always good for your business.

Entrepreneurs might have to stand up and exercise their leadership by letting some customers go. Which customers are the ones that might be on the firing list?

Customers who are consistently not profitable for your business are not good for the long term. It is acceptable to have lower profits or losses from a customer over a short period for a potential lucrative strategic relationship. However, if the customer over a longer period continues to be a drain on your profitability, it might be time to let them drop off the list.

Chronic complainers, without legitimate reasons, are very difficult to service and cause undue headaches for your employees. Unless the customer has genuine reasons to be dissatisfied, it is not in the best interest of management to service clients that constantly create irrational demands on your staff.

Entrepreneurs need to develop an excellent reputation for service and customer relations, but if need be it is okay to fire certain problem customers.

Ravi Patel

http://www.patelCFOservices.com

Published in: on August 11, 2014 at 1:45 pm  Leave a Comment  
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Meaningful Progress Better than Perfection

How often have you heard someone say “I am perfectionist.” It might be good, but it is not helpful for Entrepreneurs.

Entrepreneurs are generally impatient. They need to see the fruits of their invention right away. If they wait to perfect it, they get bored and move on to something else. The market will not wait either – getting it to the market first is the name of the game.

As Entrepreneurs grow their business, they should be striving for measurable progress on established goals rather than perfection at a point in time. Sustained progress in the right direction is desirable than perfecting some aspect of the product, process or service without overall forward movement.

An idea that is ninety percent complete and implemented is better than something that is not put into practice as it waits to be perfected.

While perfection might be appropriate for artists and scientists, Entrepreneurs need to be progress driven! Show leadership by demanding progress from your employees instead of perfection.

Ravi Patel

http://www.patelCFOservices.com