How do you increase efficiency and profitability in today’s marketplace? Five key components are common among most profit leaders:
• Top-down defined game plan
• Customer focused sales and marketing effort
• Ongoing commitment to a strong balance sheet and profits
• Careful investment in technological efficiencies
Profit leaders know their company’s sweet spot. They focus on specific knowledge and abilities and become experts of their domain. Generally, profit leaders center on a particular printed product or process and do it better than most, or they supply a customer service that can’t be found elsewhere and do it better than most.
Top-Down Defined Game Plan
Profit leaders know where they are headed and their employees know they play an important role in getting there. Leaders clearly and consistently ensure all efforts support the firm’s objectives. They have a strategic plan carefully developed by people who care, and communicate their plans to their staff.
A Customer Focused Sales and Marketing Effort
From the game plan, management prepares a specifically tailored sales plan and customer service protocols, with every facet of the organization supporting the company’s strategic goal. Top management is committed to and participates in the marketing efforts. After all, there is no better salesperson that the leader of a company who combines industry knowledge with customer dedication.
Ongoing Commitment to a Strong Balance Sheet and Profits
Profit leaders know the value of maintaining a strong balance sheet. In a highly competitive industry there is a clear link between maximizing efficiency and maximizing profit. A strong balance sheet lets you decide how to handle opportunities and weaknesses. Building a strong balance sheet requires industry leaders to constantly track performance against key industry indicators to ensure ongoing profitability. Some examples are below:
Careful Investment in Technology Efficiencies
Profit leaders maintain a strong balance sheet while judiciously investing in technology and opportunities. When making an investment, they make sure that ROI projections are clear and achievable. Progress is monitored and adjustments made until profitability is achieved.
Stuart Margolis is a CPA and partner of MargolisBecker LLC, providing information that helps firms operate profitably. More information can be found at www.margolisbecker.com.
Peter Schaefer represents New Direction Partners LLC, which has guided more than 200 printing company owners through the sales and merger process. Learn more at www.newdirectionpartners.com.