Laying out future business goals, creating various types of budgets, and taking deliberate steps to acquire customers and measure success are some of the differences between productive business operations and a mom-and-pop business.
Steve Kim of Montero Consulting and Business Coaching, working from Pomona to Riverside in the Inland Empire, says any small business can be productive. He outlines the following characteristics of both.
Mom-and-Pop Business Traits
"The mom-and-pop business doesn't have a clear direction for the future. Decisions are based on how the business has been handled in years past," he said.
Reactive
Receipts may get stuffed in shoeboxes, there are no inventory controls, and the mindset is "how do we make sales today" instead of laying out a step-by-step six month to one year plan to acquire customers.
Disorganized
No system exists for handling the multiple tasks of administration, production, marketing, sales, or customer follow-up.
Lacking Accountability
Everyone does everything and employees are rewarded subjectively depending on the mood of the owner or company president.
Productive Business Traits
"A productive business knows the core strength and makes plans and contingency plans for the future," says Steve.
Proactive
Have a regular accounting system, even if it's with a pencil and paper and set aside specific intervals to track spending and income. Make regular systems for each part of the business: production, employee expectations, marketing, and sales.
Organized
Define tasks according to the mission and vision statements of the company and then assign employees in the company based on ability, interests, and motivation.
Specify Rewards
List specific ways to measure success and incentives to reward hard work.
Building a productive operation can mean long-term profitability and peace of mind for the business owner and employees.
Click here to log on to Montero Consulting and Business Coaching and ask for business productivity tips.
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