Small does not mean insignificant

Small businesses have lower costs than larger businesses.

However their unit costs are usually higher and their cost base (as a percentage of sales) is also usually higher.

Cost control is therefore not just important - but vital.

If you take your eye off your costs, you can get into trouble very quickly.  So, of course  you need a good costing system - so that you understand where costs are incurred and at what level - and why.

However, only you can judge whether a particular cost offers good value to the business.

So take a good look at your costs -all of them - and assess the value they provide to the business. Then think how you might reduce them - without impacting on that value.,

This is not an annual review - it should be a continuous process. Value/Cost is your productivity - its what generates your profit. Maximize it!

Have you put on weight?

Are you bigger than you were last year?

I don't mean personally. I mean... Is your business bigger than it was?

If not,where did you go wrong? If you don't know, you need to start to find out. Otherwise you are faced with another year of no growth - or worse. so take a look at our competitors, your advertising  your product range and find out what is not working.

Then change it!

Technology for the New Year?

When times are tough (as they are now), we tend to turn in all directions looking for some help.

So, will technology help us out of the current mess we are in?

 It is possible for some types of organisation - but I wouldn't bet on it.

 In concert with something else - procedural review, process re-engineering - you stand more chance -but relying on technology on its own sounds like desperation.

Now for something real

The new Year resolutions have been broken - probably.

 But there is still time to change the way in which you run the company.

 But if you are going to change - get it right.

 Your employees will not thank you for another half-baked initiative.

 So - your real resolution might be to think things through before making change.