There is one common denominator of all successful companies, they protect their bottom line, so they are profitable. Companies are in business to generate profits, not to provide jobs for their employees. You want your company to succeed and grow so they can consider increasing wages and benefits or offer future career growth. To do this, they must continue to be profitable.
As an executive of a company, you are a leader in every sense of the word. You not only lead people, but you head up projects, and make decisions that have bottom line implications. As you begin 2023, have you thought about revenue generating strategies you could implement? Take time to focus on six revenue generating strategies for your area of responsibility. When you are creating your strategies for 2023, put yourself in the shoes of your CEO. Imagine that you have total bottom line accountability for every decision reached.
Create multiple strategies on how to increase profits, obtaining input from your team. You want your team to understand that increasing company profits could also benefit them. When the list is completed, number the strategies by their potential level of impact. Select no more than six revenue strategies for the coming year.
List each strategy, then create action items that are dated and assigned to a specific person or team. Check off each action item as they are completed to show your progress. When the action items are all completed, you have achieved the revenue generating strategy.
If you are in a position or department that does not generate sales, think of strategies that you could spearhead in 2023, to save costs or lower overhead. Your job title may not be Purchasing Agent but imagine the impact if you identified a new supplier or vendor who could possibly save your company thousands or even hundreds of thousands of dollars.
When you interact with executives from other companies, inquire about similar products or services they utilize that are cost effective. This is one of the greatest advantages of having a strong professional network. You can obtain referrals and resources that otherwise might not have been identified. Whether you are implementing strategies that increase sales or decrease expenses, you are impacting the profits of your company.
Often professional associations offer their members discounted products and services. Research the associations you support to determine if membership offers cost saving on phones, insurance, workmen’s comp, job board ads, or other services your company currently utilizes. So often these associations can negotiate better rates because of the high volume of membership participation. Also reach out to members of the various online groups you support to obtain recommendations.
Another way to increase profitability and decrease expenses is to become aware of the best use of your time, as well as the people you lead. There are so many time wasters that can cost your company thousands of dollars. When you save time, you are almost always saving money.
To build in accountability for yourself and your team, conduct a weekly review starting this Friday. Every Friday afternoon have everyone answer three questions 1) What did I do right this week? That represents the 20% of what they are doing that provides 80% of their results. The goal is to become aware of the 20% and do more of those tasks in the coming week. 2) How did I waste time this week? Stop doing those tasks or activities immediately to become more efficient. 3) What new idea am I implementing this month? Each month, you and your team should implement one new idea to improve their individual results.
The weekly review is an excellent way to keep your team engaged and retained. It automatically implements accountability every Friday. You may have a non-productive week, but you will never have an unproductive month or quarter because you and the team you lead, will make adjustments every Friday.
If you want to guarantee that your team is focused on increasing profits and decreasing expenses, ask everyone you lead to write down six top priorities at the end of each day. These six priorities are non-negotiable and must be completed the following day. This is a great way for you to know what your team has identified as priorities. Too often, individuals you lead could be focused on tasks that are not impacting increased revenue or decreasing costs. This allows you to provide input daily while you teach your team how to prioritize.
When you identify strategies, implement weekly reviews, and have everyone write down six top priorities daily, you are also teaching your team skills that will help them advance in their career. These activities position you as a leader that not only helps your company increase profits, but someone who also inspired your team to develop and grow. Bottom Line – everyone WINS!
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