Successful American business magnate, inventor, and investor Bill Gates attributes part of his success to focusing on specific elements of his business ventures. In other words, he became successful by practicing tunnel vision rather than trying to focus on everything all at once. To put it simply, you have to fine-tune your focus if you want to expand and grow your business. The following 3 tips will enable you to accomplish this.
- Determine which products or services are the most profitable. The best way to monitor your profitability is by calculating the cost of your sales when performing your business analysis. Certain high margin sales require the investment of additional time and money compare to other product sales.
- If you want to increase your profitability, consider refining your assortment of products or services. Your growth and profitability relies on how well you can manage you inventory. Kodak is a perfect example of how a highly successful, long-standing company had to refine their whole approach because of the advent of digital technology.
- When evaluating your customer relationships, look at the hidden costs involved in selling to them. No two customers are ever alike and there are a number of ways to evaluate these relationships. Identifying those hidden costs is the best place to start.
No matter what type of business you own and operate, you have to review your customers as well as your products or services from a strategic standpoint. Identify those areas where you have been successful in the past and focus your resources on those segments of your business in order to optimise your growth potential. Most importantly, don’t rely solely on your gut feelings or instincts. In most cases, a company’s success is driven by a relatively small segment of clients or customers and a small product or service assortment.