One of the topics that we covered at our recent home improvement program was the most common errors that we see companies make when we do client visits or conduct a business analysis.
In most cases, these errors are easily fixed and can result in a major boost in both cost savings and profitability.
In no particular order:
- Lack of business plan and operational model
- Improper pricing formulas
- Direct costs not clearly defined
- Fully loaded marketing costs not defined, allocated or managed
- Insufficient safeguards to ensure net profitability on each contract performed
- Lack of cash flow management
- Poor distribution and control of leads
- Failure to maintain adequate internal records and accounting
- Failure to understand personal exposure (liability) in ongoing business transactions
- Outmoded (often risky) sales compensation methods
- Lack of information regarding federal and state laws (Frequent failure to conform)
- Failure to examine the law of “cause and effect”
In forthcoming blog postings I will go into further detail about each of these; however, if you have any questions in the interim feel free to contact our office at firstname.lastname@example.org.