Three Keys to Profitability

by Mark S. Fulton

As we approach the end of year 2000 (and the true beginning of the new millennium — but let’s not go there), it’s time to reflect on the past 12 twelve months and ponder the year ahead. What do you need to do to take your business to the next level in the new millennium?

The keys to a profitable 2001 are quite likely to be the same factors that made 2000 profitable. Even though we are entering a new millennium, there’s nothing new about what should form the foundation of your business strategy for next year—repeat the things that worked and replace the stuff that didn’t.

The trick, of course, is identifying this year’s successful business tactics and figuring out ways to use them more effectively next year. If you have kept track of all that you’ve done to build your business, you’ve got a resource from which to mine nuggets of strategic wisdom. However, you may be among the many who are simply glad to be on their feet at year’s end, dazed but determined to climb a little higher on the path to profitability in 2001.

Regardless of which group you find yourself in, here are three keys to profitability that every business should consider while charting a course to prosperity.

Systematize Your Time - Joe Namath once said, “I’ve never lost a game. I’ve just run out of time.” Broadway Joe’s ego aside, his observation about the relationship between time and winning is brilliant. Given unlimited time, all of us could reach our goals. Unfortunately, like NFL football teams, we must play the profitability game within the boundaries of the time we have allotted to our pecuniary pursuits. That means we have to make the most of the limited time we have allocated to work.

Time management is a subject that has filled the pages of many books. One that I like is a simple little compilation of time management tidbits titled “611 Way to Do More in a Day” by Stephanie Culp. Culp divides her advice into practical categories such as “Getting Out the Door, “Taking Control of Your Day” and “Working Smarter, Not Harder.”

The most important thing to remember about time management is that its purpose is not to help you do as much as possible. Rather, time management should help you do the most important things in your business and in your life first.

Systematizing your time simply means taking a disciplined approach to using your time wisely. Let’s consider just one way to prioritize your schedule. Put a price tag on everything you spend time doing. It becomes easy to make decisions about activities when you figure out how much they impact your bottom line. By giving every event in your day a monetary value, you can quickly sort the profit makers from the profit takers.

Serve Your Customers - I’ve addressed customer service from several different perspectives in this column. Nevertheless, the four pillars of fantastic customer service haven’t changed. They are:

• Attitude is Everything - People make their minds up about a business within 30 seconds of their first contact with it. The attitude that pervades your business will be the first thing your customers notice. Do your employees exhibit an attitude marked by cheerfulness, confidence, enthusiasm and expectancy?

• Communication Creates Credibility - The messages you transmit to your customers can make or break your business. Salespeople, customer service representatives, office staff and the CEO all need to be mindful of what they say and how they say it when dealing with customers.

• Listen and Learn - What do your customers want? How well are you doing at meeting their expectations? What would your employees change to serve customers better? Surveying your customers and employees regularly will provide you with a wealth of information that will enable you to improve your existing products and services and develop new ones.

• Relationships Rule - A customer is by definition someone who is a customary patron of your business. That’s where the word comes from. The word “customary” implies that this person has made doing business with you a habit. In other words, he or she has established a relationship with you. Be sure to do things that will leave your customers saying “Wow” and wanting more of what you have to offer.

Sell Your Business - Collect customer comments about your performance in writing when you deliver your product or service. Testimonials about the quality, value and convenience of your product or service are invaluable for marketing your business to others.

Keep notes about your interaction with clients. When a client relationship turns out particularly well or when you meet a need in a unique and compelling way, write out the story for future use. Share your stories with prospective clients to illustrate the quality and value of your product or service.

Develop an ideal client profile. Present your customers with a written description of the people who would make good referrals for you. Make a list of characteristics that your best clients share and describe the circumstances in which people would need your product or service. This can be a valuable tool for generating new customers.

When the clock strikes twelve midnight on December 30, the year 2000 will become history and the year 2001 will be upon us. Use these three keys to unlock the potential of your business and open the door to greater profitability in the new millennium.

Copyright 2000 © Mark S. Fulton