From Survival To Revival

“A business doesn’t run on sales volume or sales $$, it runs on gross margin” In o rder  to survive, your business has to have sufficient gross profit. Simply, gross margin is the money the business retains  after incurring the direct costs associated with producing the goods and services sold   ( Cost of G oods S old ) . The bigger the left over, the more money your business will have to cover other fixed and operating costs  and most importantly to make a profit .  As you have realized, it is a pretty simple concept but business es  often ignore the importance of having healthy profit margin. Cost of G oods S old is the accumulation of all the variable and fixed costs directly related to your sales and excludes costs such as marketing expenses, rent, office expenses,…   Now , you might ask yourself: “Why should I care? Isn’t it all about sales revenue or profit?!” So , let’s explore the importance of knowing what your gross margin is....

As brutal as it might sound : l et’s dissect the market it is crucial to have a deep understanding of the market you are operating in. In previous posts, I have briefly mentioned the importance of selecting your target market. So, if your product is ticking all the boxes , you truly believe in your processes BUT the business is still hardly viable, then there must be something wrong with the market you have chosen to operate in. Target market is defined as the market you intend to sell your products and services to which includes a targeted set of customers. As Alan Lafley  the author of Playing to Win  says you need to know “ Where will you play and how will you win” .  In order to reach out to your appropriate target market, you need to be able to divide the market into different segments. So, each segment will dictate who will be your potential customer. You can have different approaches to market segmentation, just make sure you are asking yourself : -...

You once had a remarkable vision but the reality of your product is far from what it meant to be. Have you realized what you offer as your product is great but your bottom line is not in a good shape? Or, you believe your resources are limited which makes it impossible for you to promote what you think it’s best. I am glad you have passed your denial stage. You would be capable of welcoming the change when you overcome your delusions. Let’s take a closer look and go through what I call product success points. In order for your business to thrive: - Your customer should be able to relate to your products, so don’t make it sophisticated, make it easy to understand - Your product needs to be in line with your target audience, be careful who you are servicing (Age group, social class, earnings’ bracket,…) - Your product has to be scalable which leads to a satisfying sales rate . The math is simple, you earn more when you sell more - Make sure your product stands out, Others a...

If you are a business owner, it is because you came up with a great idea, product or service which you wanted to share with others and make a living. Then, you already have a competitive edge that others might not have. However, the question is why your great idea, product or service is struggling even when you have done the best you could. My quick and frank answer is your best might not be good enough. Sometimes, we assume getting entirely involved in complexity of a business might be more appealing. That might bring you more customers and so on. In the end of the day, it is the simple foundations that make a business great. Such as your people, the ones you are dealing with on a daily basis and your wider stakeholders like your suppliers. Review your relationships and observe your communication channels. As a business owner or the boss, are your messages always clear or instead, you often confuse the audience? Do you give clear directions and do your employees...

Feeling frustrated, scared or stuck, you have already tried everything you possibly could, but your business still struggling! When the wheels fall off, we all feel of balance, out of control, anxious and uncomfortable. So, you are not alone. Statistic around the world, says about half of businesses fail within the first 18 months or they never see their fourth year coming. Then, if you are still in business, pause, take a deep breath and be proud of yourself. Some business owners say they would rather learn from their mistakes than never try. So, you shall consider a reboot when your business has gone haywire. Don’t be fixated on a problem, reflect on what’s happening and try to “turn your mess into your message” as Alvin Slaughter says. What matters is how we deal with failure. Do you stuck with it and try to blame everyone else than yourself and pin point how their actions resulted the failure? Or do you sink into your denial stage and your ego doesn’t let you express you...