THE ENTRECODE BLOG
Entrecode: The easiest way to make money is to stop losing it
In using entrecode® with businesses there are a number of common challenges they face which when addressed can really boost their performance.
One area is to work ON the business as well as IN it. The reason people do not work on the business is that they are too busy working in the business dealing with the day to day issues. Very often they find it hard delegate to free them up to work on the business. So a key skill they need to learn is to ‘let go to grow’. I found they can be helped by providing entrecode® processes and the facilitation of a small internal team to work on the business.
A quick win is to help them to recognise the easiest way to make money is to stop losing it. Many are inadvertently throwing money out of the window. The main reason is that they do not have the right level of analysis which helps them to identify where they are really making and losing money. This process also improves cash flow and can provide internal funds for growth as opposed to needing to go to the bank with a begging bowl.
Liam Burke of P Squared Limited who provides private radio facilities to major clients
Liam analysed his business in depth as part of a strategic review and identified where he was throwing money out of the window. As a result his overall revenue increased by 10.4%, Net profit increase 35%, the company is on track to reduce travel expenses by 30% by reducing the number of ‘on site’ sales visits and replacing them with remote demonstrations using online meeting technology. He has also reviewed and rationalised his product range to focus on profit centres.
Mark Eggleston of W J Components Ltd who provides timber treatment
Mark stopped losing money when he clearly identified which products made or lost him money. He enjoyed making wooden furniture for the caravan industry and took great pride in the quality of his work. A detailed in depth cost analysis revealed he lost money on every sale. During the analysis Mark also identified that his new product DeckWright – anti slip decking for boats – was a growth market and was highly profitable. He sold his machinery from the caravan furniture business and invested the money into new DeckWright machinery. As a direct result his profits will quadruple by 2015.
