I am excited to announce that my new book “Mastering Business Operations” is scheduled to hit the shelves in November. The book will provide business owners with 10 key tools to implement in their businesses to get back in the driver seat. Implement these tools and avoid the chaos and constant fire drills most business owners face these days.
Decrease COGS and Increase Profitability
June 22, 2009Our latest Case Study shows how simple systems can be used to re-gain your profitability in your business.
We worked with a tile contractor and helped him track labor expenses more closely, improving his profitability significantly.
Read the entire case study here!
Case Study: Achieving Operational Excellence
June 19, 2009Situation:
The owner of a carpet cleaning business wants to open another location, but spends 70 hours a week dealing with the issues in the first business, leaving him little time to devote to the start-up of the second location. The owner has 13 employees and is involved in the majority of all processes in the company.
Solution:
Over period of one year, we developed a complete operations manual, including Organizational Chart for the current business, job descriptions, as well as how-to-manuals for all jobs in the company. Anything from daily activities of the receptionist to the scheduling of the field technicians was documented in this manual. Soon, employees were able to complete their jobs without the input of the business owner, saving him many hours of work throughout each week.
Results:
- The business owner reduced weekly hours worked from 70 to 40 for the first business, leaving him time to focus on the opening of a second location.
- The employee manual enabled the owner of the business to open a second location with fewer headaches.
- The clearly defined processes made it possible to cut back the office staff by one person, saving the company additional overhead of $30,000 per year. D
- ue to better processes in scheduling and better job processes, each field technician increased productivity by 20%, resulting in higher profitability.
Case Study: Increasing Sales in a Design/Construction Business
June 9, 2009Situation:
A well established design/construction company with a showroom wants to improve their bottom line. Lead generation and sales volume fluctuate greatly from month to month.
The owner relies heavily on showroom traffic to generate leads. All Ads are geared towards guiding people into the showroom, where the designers, who are also the sales people make contact with the leads and guide them all the way to making a buying decision.
The owner of the business is unable to say how many leads his marketing efforts are generating, how many leads each designer is dealing with, and what percentage of leads are actually buying from his company.
Solution:
We implemented a three pronged approach to systemizing the process of converting leads to clients.
We started tracking the number of people coming into the showroom with a simple lead tracking sheet. The designers directed to ask how people found out about the business. The information provided valuable insight into which marketing strategies were generating the most traffic.
We developed a sales process consisting of 15 steps, including postcards, e-mails, phone calls, and personal visits, designed to strengthen the relationship between the designer and the potential client. We also trained the staff in the use of psychological and behavioral techniques designed to form a better bond with the prospect.
Finally, we implemented a sales process tracking system, in which every lead was listed. This document showed on a daily basis, where along the 15 step sales process each lead was. Over time, we could identify at what step most leads were dropping off, and make appropriate adjustments to the process to improve conversion rates.
Results:
We were able to identify unprofitable marketing strategies and cut advertising costs in favor of more effective strategies, saving the company 35% in marketing. We also increased the conversion rate by 60%, resulting in an increase in sales of 30%.
Posted by jsieber1