Tag Archives: advantage

Administrative , , , , , Leave a comment

Doing It Better: Operational Efficiency = Competitive Advantage

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Many of you may know that I teach business plan writing.  I will begin another session of my three-part  (total six hours)  workshop series  “Become Your Own Boss: Effective Business Plan Writing”  at Boston Center for Adult Education on Wednesdays February 5, 12 & 19 5:30 PM – 7:30 PM  http://bcae.org class ID # 10573.  

I recently upgraded the operations segment of the workshop because like too many business plan resource providers,  insufficient attention was paid to those issues.  For example,  the business plan template displayed on the Small Business Association website does not include an operations segment.  Operations is an important element of every business plan and business,   including those organizations that sell intangible services.  The inclusion of an operations segment to my business plan writing workshop is a quality control/operations upgrade that allows me to better  meet or exceed client expectations and gives me a competitive advantage.

What do we mean by operations?  Operations is the process by which the items we sell,  whether products or services,  tangible or intangible,  are obtained or produced and made available for sale.  The operations component of a business plan  (and operations departments)  accounts for a wide variety of responsibilities,  including distribution of the product or service to the marketplace  (sharing that responsibility with sales; operations oversees shipping and handling);  inventory management;  quality control;  maintenance of the place of business;  maintenance of business equipment;  workplace safety;  and risk management (sharing that responsibility with finance;  operations oversees aspects other than financial).   A business model includes elements of operations and marketing functions.

Recently,  I suggested to a client a way to use social media to create an operational efficiency that will result in a competitive advantage for her business.  Outreach made by her staff to targeted populations will soon become faster and the number of potentially successful contacts will increase,  as the time and cost of doing so will decrease.  The organization will more easily and inexpensively meet or exceed its clients’ expectations.  This new operational efficiency can be promoted to prospective clients in the talking points of a sales pitch and used as a means to bring in more business.

It is to a Freelance consultant’s advantage to learn how to create operational efficiencies and provide services of the greatest value faster and less expensively.  The time and money saved can be used to directly increase revenue and/or promote the business.  The operational efficiency that I created as I became more experienced and proficient in writing these weekly blog posts caused me to receive the paid opportunity of editing a colleague’s monthly newsletter.

Operations processes are different for every category of business,  so I cannot give specific recommendations of how to create efficiencies within your venture.   Overall,  be mindful of how you source  materials for products that you manufacture,  the wholesale costs of  items that you sell at retail,  or what you pay for supplies.  As your business grows,  look for ways to buy in volume so that you can minimize the cost of goods sold.  Look also for ways to cut production time of products or services that you create and always strive to provide a product or service that meets or exceeds customer expectations.

Thanks for reading,

Kim

Survival Strategies , , Leave a comment

The Law of Attraction

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Let’s chat for a moment about competitive advantage.  For sure,  we must identify and/or invent as many as possible.  One often overlooked competitive advantage is to make everyone think that we HAVE competitive advantage.  Pretty slick,  huh?

Think of it this way:  perception is reality and everybody loves a winner.  Precious few come to the rescue of the down and out.  Failure is frightening and depressing and no one wants to come near,  lest the misfortune rub off on them.

Conversely,  the appearance of success is a magnet for still more success,  mostly because people think you deserve it (you must be doing something right!) and can handle it.  Today’s lesson is that image counts,  so always make yourself  look and feel like a winner.  Invite success to your door—or at the very least,  don’t make it turn tail and run away from you!

Dress for success

When attending any type of function at which you might possibly meet a prospective client, dress appropriately.  Respect the occasion and wear the right casual,  formal or business attire.  Invest in good quality clothing (hit the end-of-season sales) that flatters your body type.  Good quality clothing looks better,  lasts many years and is worth the money because when amortized,  it actually costs less than the cheap stuff.  Dress to impress.

Project the positive

Be enthusiastic and passionate about life and business.  Let your body language,  voice,  eyes and mannerisms  sparkle with good energy.  Walk into every room with confidence,  hold your head high and radiate a positive aura.  Others will be attracted to your glowing presence and they will cross the room to introduce themselves,  to have the pleasure of meeting and talking with you. 

Greet one and all with a firm handshake and a warm smile.  Make good eye contact and show that you are delighted to make their acquaintance and are interested in what they have to say.  People like to do business with people who have positive energy.  It  suggests honesty and expertise and therefore inspires confidence and trust.

You’re worth it

Create a strong value proposition for your business.  Establish that your products and services are top drawer,  will provide unique and highly desirable benefits and therefore command a premium price in the marketplace.  Communicate that your products and services are worth the investment.

Get to know the objectives and priorities of your typical customers and broadcast the benefits that resonate most.  Gather information that allows you to anticipate customer needs and deliver 5 star service every time.  Make your customers grateful to do business with you by knowing how to solve their problems and make them look smart for hiring you.

Do your best to maintain your prices,  even when there is pressure to offer discounts that are outside of your pricing strategy.  There may be times when you must relent,  but defend your position by learning to clearly articulate the ROI of  doing business with you.  Think cariage trade,  not cut-rate.

Business is great

Creditors may be ready to foreclose,  but do not let on to your clients!  Moreover,  be discreet with colleagues,  lest word of your troubles gets bandied about.  The smell of desperation is repellant and clients will take their business elsewhere if it appears that your ship is sinking.  If you expect to do any business at all,  it is imperative that you project capability and dependability.  Financial insolvency does not inspire confidence,  no matter how it happens. 

Remember always that people do business with people that they know and like.  They do more business with people they trust and respect.

Thanks for reading,

Kim