The question that always arises in an organization is which areas that you really need to engage an external consultant. There will be many possible areas as an organization which is huge will tend to want to stop leakages in as many areas as possible. However what is important to note is that which are the areas that need attention first. Its impossible to address all areas however its pertinent to address the ones that can make a distinctive difference to the results.
In any organization sales is the most important area to focus in. Without sales, there’s no money to pay for expenses which might include employee’s salary, electric and water bill, daily and office expenses and the list goes on. However revenue with low margin post a greater challenge as without enough profit how is it possible to pay for the expenses? On the other hand, if you have sales yet your customers pay you six months later run then cash flow will be an issue and you find that you have similar issues as described before. So if your company have such issues and your team seems unable to turn it around then its time that you engage a consultant.
Staff Sales Performance
If we go forward to a more fundamental level, if a company employs a lot of salesmen yet the result is not as expected then the next question is why is that so? Is it because the salesmen do not know how to negotiate well in order to preserve the margin or the matrix of approval for discount has not been effectively implemented. Or the incentive scheme is such that the salesmen are not encouraged to sell at higher profitability? All these can be analyzed and the appropriate solution being offered yet only with a deeper understanding from an experienced hand will the root of the problems be found and the necessary solution be presented.
Marketing is about visibility. Yet visibility to a target audience that might not be interested in your products or services would prove to be an expensive yet futile efforts. The challenge of marketing is always how best and effective to reach the target audience so that they are aware of the products and services that your company might offer. Are you getting it right from your marketing team? If not a lot of money would have been spent as marketing needs money. Sales makes the money however if the money is not used up well then there will never be enough.
Whenever there is a credit crunch, the focus will always be on savings. However whats more important first is revenue generation. Which spheres of possibilities will allow revenue generation to be increased? On the other hand, the challenge about savings is where to start. Reducing expenses by curbing the daily expenses can have undesirable repercussions. For instance, if the reduction ofd expenses means less marketing activities and lesser time spent with customers that would indeed have a negative impact later on.
The greatest challenge is always about efficiency. What can be done in the shortest possible time frame yet it allows the greatest potential of positive outcomes? This is also translated in better profitability. Time is money and the wise usage of time is also a reflection of efficiency. There will be redundancy especially sometimes in the area of super imposed responsibilities. The question is how can efficiency be obtained in this manner?
If the inventory of a company is not managed in an efficient manner, cash will be stucked in inventory and the question that is the immediate concern is how to get rid of the inventory in a manner which will not drastically hurt the profit margin. If a fire sale is done yet margin are truly squeezed will it be worth it in the first place? How then its best to address the inventory situation in the most efficient way? There is a need to have a focused effort in this area.