Managing Sourcing

When you vision to borrow the management consultant s trick of turning nouns into verbs you imagine the loftiest heights you could scale, not the next step or several steps on the ladder. As you read such a document, you may make a surprising discovery, such as that you don t really want to own a large, fast-growing enterprise but would be content with a stable small business. Additionally, lenders may require borrowers to pay points in order to cover administrative costs or to procure a lower interest rate. Make the most of your present position.

Look at companies serving the same geographic area

There are also very web-savvy marketers out there, and it helps if you are tapped into online marketing, such as social media. The bad news about recessions is that consumers are wary buyers in recessions, and wary buyers mean low margins, and low margins usually mean low profits. You need the variety and breadth of experience and skills a board (of directors or advisors) brings to the table. Even just a few years ago the opportunities for free promotion were fairly limited compared to the clout of paid-for advertising.

Provide clear expectations for Marketing

This amount may reach $1 million. Conduct your training sessions in an interactive setting (versus the old classroom style of teaching where the teacher simply tells the students what to do). A small software company whose mission statement included the goal of putting Microsoft out of business would be looked upon as foolishly naive. Operating ratios measure efficiencies in day-to-day activities, e.g., the ratio of the cost of goods sold to sales, or net profit to gross profit.

Present a sense of urgency through limited-time offers

It may be earmarked for producing working prototypes, doing market research, or otherwise testing the waters before committing to a full-scale endeavor. Yet they stay in business and keep doing what they know how to do because they don't know what else to do, how to fix it, and can't afford to try anything else. Young men, would you scorn to row a boat for a living? Unlike a venture capitalist who takes an equity position, bankers don t get a higher return on their loan if you happen to be more successful than expected.

Putting your phone number on your trucks and signs

Highly redundant processes such as manufacturing can have a very large span, while creative businesses such as architecture and filmmaking may have a span of only a few persons. You tell them, and they decide if they'll do it. Give your people weekly opportunities to perform, to learn, and to train others. By creating and following a plan, the manager can assign tasks and hold people accountable.