[vc_row type=”in_container” full_screen_row_position=”middle” scene_position=”center” text_color=”dark” text_align=”left” overlay_strength=”0.3″][vc_column column_padding=”no-extra-padding” column_padding_position=”all” background_color_opacity=”1″ background_hover_color_opacity=”1″ width=”1/1″ tablet_text_alignment=”default” phone_text_alignment=”default”][vc_column_text]Think about your business and the companies you’ve worked with. How often was the process more difficult than needed or so complicated that some support services simply couldn’t enable customer delivery or profitability?
I worked with a company that needed to limit overhead expense to 15% of revenue to be profitable. Their overhead rate starting point was 25%; they grew expenses to 37% by the end of the second year, and 55% by the the end of the sixth year. What drove these adverse outcomes? Adding overhead staff, rather than unlocking productivity, and increasing facilities cost for space that was never used.
Complexity and Mass Burns Time and Cash.
Consider how the following items add to your company’s complexity and mass or prevent operational flexibility, profitability, and supporting scale.
Mass is increased by:
- Unclear objectives and the lack of a written game plan
- Long term contracts
- Excess staff
- Inconsistent communication
- Permanent decisions
- Not using proven software applications
- Meetings
- More entities than revenue
- Thick process
- Inventory (physical or mental)
- Hardware, software, and technology lock-ins
- Office politics
Avoid these things whenever you can. That way, you’ll operate more profitably and be able to change direction.
The more expensive it is to make a change, the less likely you are to make it. Huge organizations can take years to pivot. They talk instead of act. They meet instead of do.
If you keep your mass low you can quickly see and change business drivers: what differentiates you in the market, dependence, being cash positive, and having customers that promote you.[/vc_column_text][/vc_column][/vc_row][vc_row type=”in_container” full_screen_row_position=”middle” scene_position=”center” text_color=”dark” text_align=”left” overlay_strength=”0.3″][vc_column column_padding=”no-extra-padding” column_padding_position=”all” background_color_opacity=”1″ background_hover_color_opacity=”1″ width=”1/1″ tablet_text_alignment=”default” phone_text_alignment=”default”][nectar_btn size=”large” button_style=”regular” button_color_2=”Accent-Color” color_override=”#007581″ icon_family=”none” url=”mailto:team@thehabitsofprofit.com” text=”Contact The Habits of Profitability™ Team” margin_top=”20″][/vc_column][/vc_row]