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Improving Profitability and Managing Change
An interview with management consultant Ellen Huxtable.
Contact
information
Ellen Huxtable, MM
Advantage Business Concepts
ellen@advantage-biz.com
www.advantage-biz.com
630-879-6511
Paul R. Lloyd: Where should a small to mid-size company start when it wants to improve profitability in times of change?
Ellen: Begin by looking at your financial statement to see how you are doing, your processes to see if they still make sense, and your marketing to see if it is effective.
Marketing can be the biggest bottomless pit in the company, if it is not well managed. Ask yourself what is working and what isn’t.. One simple technique is to ask customers how they found out about you.
Ask you staff what is working and not working. The idea is to institute a process improvement cycle where you identify trends, opportunities, and strategies. Then implement and evaluate.
Paul: What are some of the reasons to review your business?
Ellen: A business review is an effective tool to evaluate opportunities and take advantage of them to maximize profitability. You don’t save anything by avoiding the process.
Paul: When is the best time to conduct a business review?
Ellen: I advise clients to conduct a business review at least annually. In addition, conduct one anytime you sense a change in your environment. If you foresee or experience change, a SWOT analysis is an extremely worthwhile exercise.
Paul: A SWOT analysis is where you conduct a review of your Strengths, Weaknesses, Opportunities and Threats. What are some of the drivers that should cause a business owner to sense that change is occurring in their business environment so that performing a SWOT analysis is a good idea?
Ellen: I’m talking about negative change such as a loss of profit. Also any time you see changes occurring internally or externally. You want to be especially watchful of your fixed costs and margins so you can increase your return on investment. It’s easy to lose track of them during downturns in the economy.
Paul: Any advice for small-to-midsize companies facing competition from larger competitors?
Ellen: The most important thing is to know your competitive advantages. Against larger competitors, you can be more flexible to changes so make sure you know what’s going on in your industry. You can offer more personalized service and attention. You may know the customer personally so that the customer is confident that you will be there to fix it when things go wrong. Your customer appreciates that you don’t have a call center. You have the ability to control the quality of the service you provide by adding a personal touch. And you can be more flexible at being creative which allows you to invent your own promotions.
Paul: Other tips for small to mid-size companies?
Ellen: Develop and maintain customer relationships. Do you know where you are financially? Stay engaged to your financials and don’t become over dependent on staff. And don’t micromanage. You need a balance and be aware of what’s happening. Know what you do well and find the help you need. Use your help wisely.
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Contact Paul or Lynn for more information or to discuss a project.
Zuk-Lloyd
Associates, Inc.
30W261 Holyoke Court
Warrenville, IL 60555
630-393-6516
Visit our other website, PromiseGarden.com, a rest stop on the information superhighway
Paul is available as a motivational speaker covering marketing communications and general business topics. Call for details.
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