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.
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.
No system exists for handling the multiple tasks of administration, production, marketing, sales, or customer follow-up.
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.
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.
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.
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.
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