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How to Save Good Companies from Closing Down

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Success happens when you are mentally and physically present in the execution of your own plans. Take your numbers for granted and you will soon be sending your curriculum vitae to the head hunter you scouted talents from. Don’t mind upgrading yourself and you will soon be overtaken by an industry wanna-be who made it by copying your company’s every move. Leave the execution fully to others or to the uninformed and be ready to pack your bags in no time. That is, if you stop the bleeding early enough and you still have money left to buy your fare.

Business owners and foreign investors can get carried away with the success of expansion and merger only to find themselves losing almost everything and having no choice but to close the business. Amazingly enough, this situation is becoming more and more common these days despite the available talents and opportunities among the varied industries in fast-booming economies. TalkShop CEO Sheila Viesca shares valuable tips to save good companies from bleeding and eventually closing down:

1. Know your numbers. It is easy to not mind the minor expenses and get into the habit of shelling out cash casually when you do not closely monitor your regular expenses. At the onset, get into the habit of visiting your accounting records and evaluating unplanned expenses that can build up to painful proportion at the end of each month.

For instance, you may know how much you are paying the company driver. But do you have an accounting of his fuel-consumption and urgent, usual last-minute errands, not to mention food expenses? Do you order your supplies by bulk from regular suppliers who give you quality items and service at the best rate? Or have you been using the same suppliers who over the years have kept increasing their price that is now twice as much what you would pay when you purchase the same items directly from a store, even in small orders? Have you recently looked into your stockroom to check potential oversupply of items you still order but are no longer using? Do you have the habit of purchasing trimmings and equipment that are not important to the operation? What are your redundancies in the operations, with regard purchases and manpower?

The bigger picture is your overall revenue-expense and profit-loss numbers. Scrutinize which items go in the expenses and evaluate how you may minimize or manage them better. Identify your main sources of revenue and look into ways to duplicate effective processes and drive more activities towards savings and profit.

2. Inform and monitor your team. Your team members usually mean well. However, this does not always translate to knowing what to do. It is possible that you are the only one who knows clearly what is actually happening at any given time. If the front liners, sales people, and operators consistently know only 80% of the company thrust, their 20% lack of information or misunderstanding can be quite costly. Your team should be clear who your target customers are. Why they buy. What can be done so they become repeat customers. When the company is at a loss. Who are the stakeholders. What is a win-win situation for all. Employees who are not equipped with the right information may preoccupy themselves with unproductive transactions or empty discussions with both internal or external clients.

Be able to conduct regular information campaign, commitment drive, and especially performance assessment of productive and unproductive employees based on the competencies and contributions they are hired for. Act right away when you spot indifference or abuse, for the habits of one member will infect the practices and morale of the others in the team one way or the other. At the same time, give an immediate commendation or incentive to those who regularly add value to the team performance and productivity so they get motivated to sustain their efforts.

3. Equip yourself. Know everything about your industry. Know the relevant and related matters beyond your industry. Read the latest research and technology. Invest in books. Choose your personal coach or mentor. Think clearly. Manage the framing of your business but do not be stuck inside the box so you may view the whole picture, know what is coming in, and know as clearly what is getting produced. The right state of mind will keep you motivated and inspired. Remember that while you cannot control all situations, you can control your actions and reactions with your ability to think and evaluate.
Be selective of your activities and associations. Running a business requires not only commitment to yourself but also to those who work with you. If they see that you are living a life of integrity, it will be easier for you to demand the same of them.

As you arm yourself with the right tools and information to manage processes better and lead people more effectively, so must you give importance to rest and recreation. Know when to stop and catch your breath. This pause time is needed for you to recharge or reboot. You cannot expect yourself to function productively 24/7. Even the best cars have to stop for gas or they break down in the middle of the highway.

TalkShop trains investors and business owners so they may create the right opportunities and a healthy environment that will mold employees into becoming effective workers and successful leaders. Call your TalkShop Consultant at (632) 894 5588 to schedule your personal coaching and team training. Do it today before it is too late.

Posted by TalkShop
Sheila Viesca, TalkShop CEO and Director of Communication finished her bachelor degree in Literature, masters in Entrepreneurship, and doctorate in Applied Cosmic Anthropology. She designed the Philippines' Language Competency Benchmark for the Department of Education and pioneered Integrated Language Teaching (ILT) in workshop designs and corporate communication training. You can follow her on Facebook, Youtube, Twitter, LinkedIN, and Google+

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