What makes your business go down? There are many reasons why that business may not be performing to the expectations. The following article tries to open your eyes towards particular factors that may be hindering you business. Carefully, study the reasons below and see which identify with you business.
Loss of customers
Is you customer base the same as when you were making high profits? If you have lost any single client then establish why he/she was not happy. Remember that your business exists to satisfy customers.
Dissatisfied workers
Your staff will determine whether you will be successful or not. Dissatisfied employees will do their best to frustrate you efforts. Employees who are not close to you are fear your presence may be unwilling to air their grievances. Encourage employee unions and cooperatives.
Extravagant spending
Are you spending the incomes in the right projects? Your failures may be actually because of unwise spending. Cut down cost as possible but not at the expense of quality services. Remember, that quality should not be compromised.
Declining public image
Sometimes people buy your products because of the good name that your business holds. If they perceive that you are loosing customers, then be sure that you will loose more. Ensure that you guard against a bad name. A good name is business goodwill.
Dissatisfied suppliers
How have you been treating your suppliers as they deserve? Well treated supplies will ensure that you get quality raw materials that will in turn give quality products.
EFFECTIVE LEADERSHIP AND ADMINISTRATION
Everyone is a leader in his own ability and capacity. The success behind any kind of organization is effective leadership and administration. However, there are people who are born as leaders but it's important to note that leadership and administration is an art and every art can be learnt. I have met many people who never thought of being leaders but have effectively learnt the art of leadership and emerged as leaders to be admired.
In any kind of leadership, the first area of effective administration is the administration of funds. Be it in business, government departments, church or any other kind of organization, you will have the most effective leadership if you learn to use the funds properly. If any of your employees wants to paralysis your operations and bring down decades your leadership, the first place to target is your finance or/and accounting department. Your employees in this area should therefore be people of integrity and who have internalized the vision of your organization.
The second area that determines how effective you will be in your leadership is managing people. The human resource directly affects the operations of your organization. You must begin by placing every employee in the department where he/she will work best. You therefore begin by identifying where to place your staff. This means that an effective leader is close his or her staff and spends time them. After placing them in their rightful places, you need to monitor their performance. Performance of your staff is closely tied to motivation. Every employee needs to be motivated. This entails different strategies. Know which kind of motivation to use. It is not necessary to promise your staff a reward for good performance. This may bring in unhealthy competition, hatred and lack of cooperation between staff who want to out-do each other. Therefore reward unexpectedly.
Motivation may be as cheap to the organization as recognition, but make sure you recognize a staff in the midst of others. Do not do it in a closed office. It may not serve the purpose. Other strategies may include promotions, gifts, added responsibilities and increase in salary. You must also ensure that your staffs are working as a team. Working together ensures the staffs are focused towards the goals of the organization.
Effective leaders give an ear to every stakeholder of the organization. Know that the whole organization is looking on you to give direction. Begin by listening to every stakeholder then give a direction. Sometimes it's necessary to give directions basing on what you believe is best for the organization regardless of other peoples views. But this should not be always because it does not mean that you are always right. Conflict resolution strategies are important. Know that there will always arise conflicts. The win/win strategy works best for most organizations. Therefore make sure that each of the conflicting parties does not feel offended.
Wednesday, July 15, 2009
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