12Faces Skill's Modules are designed to cover a particular topic of interest while advancing the business. An example might be "Improving Cashflow". Skills are designed as 1 month "Sprints" with a workload designed to be achievable by a busy business leader and team in one month. Leaders pick from the range on offer to address the most pressing Growth Factor holding back their business. Skill's Modules are colour coded like martial arts belts. All leaders start at "white belt" level. They move through yellow then blue then black in our system. Like any martial artist, you start with the lower belts and master them before moving on. Every business leader progressed their career and business with this sort of incremental learning.
The Amazing 80/20 Principle has the power to grow your business up to 16 TIMES FASTER and make your life a whole lot less busy and complicated.
Got your attention?
We consider it one of the fundamental rules contributing to optimising your business for growth and productivity with least input of your time and resources.
Richard Koch lists 10 areas where 80/20 can be applied in a business as the first 10 below. We think there are others as well and have added them to the list.
3. Cost reduction and service improvement
6. Information technology
7. Decision making and analysis
8. Inventory management
9. Project management
12. Time Management
To take is further, the 80/20 Principle asserts that a minority of causes, inputs or effort usually lead to a majority of the results, outputs or rewards.
Taken literally, this means that 80 percent of what you achieve in your job comes from 20 percent of the time spent.
This implies that:
• 80% of your sales will come from 20% of your products.
• 80% of your time produces 20% of your gain.
• 20% of your time produces 80% of your gain.
• 80% of your problems will come from 20% of the people.
The 80/20 Principle is widely referred to throughout 12Faces.
Price is a major determinant of the profitability of your business! A price change of as little as 1% can often lead to profit increases of up to 11%. A consultant study across 1,200 major businesses found that a 1-2% increase in price, assuming demand remained constant, on average would have increased the company’s profit by 11%. Clearly, this could be a quick boost to your company’s profitability.
Stress is All Around Us. There is no doubt that many Owner/Operators work under considerable stress.
Sometimes this stress is constructive because we are excited and challenged by growing the business and/or making it more profitable.
But all too often, it comes about because events just overtake us and we find ourselves fighting off one alligator just to get attacked by another.
This stress is not healthy or helpful. It leads to all sorts of physical upsets and is also often damaging to your relationships.
12Faces has a number of written articles and videos on how to reduce the level of the 4 most common sources of stress you face:
1. Taking control of events rather than events controlling you.
2. Getting your life back by controlling time so that there is enough time to do what is important.
3. Reduce the constant worry about making money, have sufficient money to pay the bills when they fall due.
4. People problems; convert people from being a necessary evil to being a principle factor in the success of your business.
The first step is to remove the four principle traumas that are causing the stress.
Then you can begin to rebuild your health on far more productive lines.
Eight Types of Waste
The well-known Toyota car company identified seven types of waste that had an impact on Productivity and Profit. An eighth has been added more recently. By gradually reducing these wastes, you can improve the Productivity and Profit of your business. In Japanese, this is referred to as reducing "muda" (pronounced Moo-da).
In any business that has been operating for a reasonable length of time, various inefficiencies and wasteful activities will have crept into the system.
Throughout 12Faces, we speak often of optimising your business to maximise its profitability. Clearly, waste is less than optimal. Spending time on identifying and reducing waste is spending time on identifying areas for improving your Profit and therefore thoroughly worthwhile.
Subscribe to this if you are working on making you business operate more efficiently, therefore more Profitable.
The Theory of Constraints (TOC) is an important optimising technique that focuses on improving the throughput of work at the (usually) single bottleneck or constraint in the workflow.
There is usually very few, and often just one, thing that causes a logjam in your business.
This is true of many types of business; not just manufacturers of products.
TOC needs to become an ingrained habit so that you are always looking for the opportunities to dramatically improve your businesses throughput.
Among the largest contributors to the failure of both small and larger businesses, are either, they fail to make a Profit or they incorrectly account for their cash and run out of money to pay their debts and tax liability.
Does that ring some bells for you?
Subscribe to see how “Piggy Banks” can assist with turning around this potential failure for your business.