There are many approaches to managing a business, even within the same sector or profession. However there are a number of 'generic' components, that used in appropriate measure combine to form that strategy.
These components divide into two broad categories, one associated with revenue (i.e. sales) and the other with costs. In the first area, there are a number of options to increase sales:
1. Growing in the business through geographic expansion
2. Growing the business by having a wider product range
3. Growing by winning business from competitors (on price, proposition, quality, customer service)
The first category is fairly self explanitory - the bigger your catchment, the more customers.
In the second category, costs, there are a similarly wide range of options, which can be divided again into those focusing on fixed costs and those related to variable (or operating). The latter can the depreciated over time, reducing their overall cost. I’m not a great proponent of raw cost cutting, because it is all too easy to lose hard earned gains to competitors, and what appears to be an initial saving has a longer term (and hence greater) negative impact on revenue, with a net negative effect on the bottom line. However there are economic and other factors that mean that these measures are sometimes necessary and it is also a given that if you take your eye of cost control then it will become a problem.
So given that these are necessary, much of our implementation strategy involve allowing many of these elements can be applied, however using them in conjunction with web technology to provide the savings, but without a negative impact on customers or sales. Techniques for influencing cost include:
1. Reducing premises costs, including shops, warehousing, call centres
2. Reducing operating overheads, staff levels, stock levels,
3. Reduce service costs, through reducing staffing in call centre, returns, dispatch, customer support.
4. Reducing cost of sales, through reducing marketing costs (including print, advertising,etc), reducing direct sales costs (including sales staff, distribution channel and partner management costs, etc)
So these are the basics of doing good business and im my next post I'll look at how the web applies to these in more detail, but if you can't wait, take a look here: Business Solutions
Chris Long
These components divide into two broad categories, one associated with revenue (i.e. sales) and the other with costs. In the first area, there are a number of options to increase sales:
1. Growing in the business through geographic expansion
2. Growing the business by having a wider product range
3. Growing by winning business from competitors (on price, proposition, quality, customer service)
The first category is fairly self explanitory - the bigger your catchment, the more customers.
In the second category, costs, there are a similarly wide range of options, which can be divided again into those focusing on fixed costs and those related to variable (or operating). The latter can the depreciated over time, reducing their overall cost. I’m not a great proponent of raw cost cutting, because it is all too easy to lose hard earned gains to competitors, and what appears to be an initial saving has a longer term (and hence greater) negative impact on revenue, with a net negative effect on the bottom line. However there are economic and other factors that mean that these measures are sometimes necessary and it is also a given that if you take your eye of cost control then it will become a problem.
So given that these are necessary, much of our implementation strategy involve allowing many of these elements can be applied, however using them in conjunction with web technology to provide the savings, but without a negative impact on customers or sales. Techniques for influencing cost include:
1. Reducing premises costs, including shops, warehousing, call centres
2. Reducing operating overheads, staff levels, stock levels,
3. Reduce service costs, through reducing staffing in call centre, returns, dispatch, customer support.
4. Reducing cost of sales, through reducing marketing costs (including print, advertising,etc), reducing direct sales costs (including sales staff, distribution channel and partner management costs, etc)
So these are the basics of doing good business and im my next post I'll look at how the web applies to these in more detail, but if you can't wait, take a look here: Business Solutions
Chris Long
