How to make your business better – Part three.
How to make your business better. Part three.
This can best be started with a handful of questions. The third question is covered in this part.
You need to tally what you do, so the question is, do you?
Why you need to tally, takes us to both an explanation and a feeling of comfort and reality. Often we talk about the numbers. Make ten sales calls, you’ll get 5 appointments, you’ll make one sale. The average of your case size tells you what your earnings will be based on your activity. Sounds too simple right?
Well over time, the tally records that you keep become incredibly accurate.
You can define whole areas of your business by keeping tally of ALL your activity.
This can give you the reality check you may need and the comfort of knowing that business will follow certain activity.
Another tally is to price the work you do. If you are the owner of your business, what is the most productive work you can do. It isn’t filing is it. That’s a minimum wage job. So if you find you are spending 25% of your time on filing that costs £7.50 an hour, yet when you are doing your most productive work, your earnings create £100 per hour, then it is madness to spend time doing the filing and not doing the activity that produces income at your best rate.
By keeping a tally you can determine what it is that is your most productive activity. THEN you can decide to do that only. It is the same all over. Do you have sales people who could be making the ten calls to get the five appointments to get the one piece of business that produces on average £100 per hour ONLY doing that or do they sometimes get involved in doing the filing, the cleaning, the tea and coffee making or any other job that you could pay someone minimum wage to do?
This all comes into focus if you will just tally everything you and your staff do. Looking at this another way, what is your unique skill? You alone can do it and it makes great money when you do it and best of all you enjoy doing it. That is the work you should be doing. Delegate everything else.
By keeping statistics you can identify your most productive activity. Keeping a tally, you can know and plan your future. Double your activity, double your income! Once you keep statistics it is amazing how easy it is to plan.
To make your business better – Measure everything.
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