Thursday, February 4, 2010
Why company business exist ?
These questions should continue to be pondered, year in and year out by any business or organization :
What is the purpose?
A lot of businesses had a purpose when they started, but over time their product, service might be affected by market situation and change. Do we need to relook into the present purpose, intent and review if there is a need to adjust it’s original purpose if we are off line.
Did we target the right customer?
Did we reach the right group of client or we missed them totally but targeted a different set of consumers. Did we had a hard time convincing our client to support our “product”. “Product” could be any marketable item or service which we provide. Needless to say, it's a lot easier to come up with great ideas and convince people to get into if it is clear who is purchasing your product, and why.
Why people need our product or service?
We often land into the trap that people want something because they preferred or like it. This is the road to perdition. We never asked why or what they really wanted and why they chosen ours instead. A company rarely would fail if they literally speak to customers what exactly they wanted and produce what they asked for and within their commercial means.
If there is a “want”, is it going to be profitable venture ?
This is important to assess the possibility of a successful venture and there are alot of homework to be done, before setting your business plan and goals. Assessing the real market is not simple and with competition in the global business, some niche needs to be cast out from the standard norm in doing or beginning with a business.
Watch out for competitors?
If we had properly assessed our competition, would we want to do differently as we progress further into our business? How could we continuously do differently to remain as forefront player?? Whether you are selling a product or providing a service, you have to be constantly innovate and re-design or modify or carve out a new niche.
Can you cost cut - without affecting product image?
Of course cost cutting might affect or lower the quality of the product. But when you really work into the details and talk to vendors, they had lots of ideas on how to reduce cost without sacrificing quality. There are many ways to “skin a cat”.
Do we have the right leadership?
As companies mature, they require managers with different skill sets and strong leadership skill.
Do we have the right employees?
There are employees who know how to bring new ideas, while others know how to nurture an existing product line. Make sure you do not have a big mismatch of business view amongst your staff.
How will we continue to drive revenue? The management and board never held a down-and-dirty strategic planning session. We never went to a bar and tossed around ideas with employees. Companies can't live in vacuums. Chances are, what works today won't work tomorrow--just ask anyone in any kind of business.
How are your employees holding up?
You have to check the “temperature” and mood of your employees, let them vent and encourage their honest feedback. These main stakeholders are the key to pleasing your customers--and your shareholders and they lead your company to either better growth or doom. We all need to watch out that our staff hold up to their quality of work with the demanding work environment we are facing with.
Labels: Investment Pointers