5 Surprising Strategies to Increase Business Productivity and Profitability - Engine Builder Magazine

5 Surprising Strategies to Increase Business Productivity and Profitability

Maximizing both productivity and profitability in a business often takes out-of-the box thinking. But, don’t stop there! It’s also wise to go a step further and think “against the grain;” to look at issues and approaches through a different “lens” and from a different angle.

In today’s cut-throat business climate, the pressure to generate profits quickly is often unrelenting and intense. From accommodating anxious stakeholders and contending with new competitors that seemingly surface by the hour to providing good service to a varied customer base and maintaining relationships with vendors and business partners, the daily grind is complex.

And, to do all of this efficiently, effectively and expertly can be daunting to say the least. Maximizing both productivity and profitability in a business often takes out-of-the box thinking. But, don’t stop there! It’s also wise to go a step further and think “against the grain;” to look at issues and approaches through a different “lens” and from a different angle – even one that is counterintuitive or contradictory.

The wisdom this can reveal can rapidly take a business to new heights. With this in mind, consider these five surprising success strategies based on common career and organizational views held by many business managers and owners:

‘Quitting’ Can be a Good Thing: In his book, The Dip, popular author Seth Godin says that we need to quit the wrong stuff to do the right stuff. In other words, people often see letting go as something bad, but corporations, solvent governments, and the best-of-the-best among the financially savvy quit all the time. In other words, they remain solvent because they refuse to lose all of their money on a bad investment. They quit to cut their losses. Even with government, deficit spending can never sustain itself. In hard times the mayors, governors, and corporate executives that are the most savvy force the elimination of programs in order to regain fiscal health. If you’re headed for disaster and know it, it’s time to bail – there’s no shame in doing so. The embarrassment comes from spinning your wheels endlessly for the sheer principle of trying to finish what you started. Be smart and calculating and quit when it’s finally time to quit.

Superheroes are Their Own Enemy: When the going gets tough, and rest assured it will, it may be time to lighten the load – don’t be reluctant to make difficult cuts. Too many managers and owners have a superhero complex, often taking on far more than they can handle, both as a business professional and even in their personal lives. Delegating or even shutting down select initiatives and programs may be just what’s required to avoid a big picture catastrophe. In business, there is a practice known as “lean operation.” Lean is the proverbial process of throwing things overboard that slow a business operation down. In nearly every business, there are processes or personnel that are not optimal. They are “heavy” and sometimes dead weight, and if you ever endure a financial storm, they may sink the ship. This “weighted tackle” of financial liability takes many forms, including outdated technology, inefficient manual processes, failing marketing campaigns, and unproductive staffers. All can threaten the entire business during a tempest. Lightening your load rids you of those obstacles that weigh a business down, and makes business process much easier to manage.

Clarity Trumps Cash: Quite simply, those who have purpose work more productively and become more profitable. In other words, clarity of vision spurs production. Having passion for what you do is still a popular mantra but, realistically and practically speaking, most people’s passions have little or nothing to do with their business. In an age where we’re told to transform our passions into lucrative careers, it is no wonder so much of today’s workforce suffers from discontent and endless job hopping. Rather, among the most important factors involved in earning sustained profits is simply knowing the meaning of the work being conducted. What are you doing it for, and what is the significance to you both professionally and personally? The best business mindset acknowledges that no matter what industry you’re in, clarity breeds conviction and conviction spurs success. Once you’re focused on the substance of the work and the way in which it’s executed, money is sure to come. However, focusing solely on money-minded objectives is a driver for failure because, in the end, money is nothing more than a by-product of the overarching purpose you’re trying to achieve. The real payoff is the quality of your production output, the way you go about achieving it, and the resultant benefits to those you serve.

Giving is the New Receiving: Wealth building should not be a self-serving goal. Some have said that money can be the root of all evil; however, the actual quote is “the love of money is the root of all evil.” In fact, money can be the root of a lot of good-doing. For many, a strong business venture may be the path to helping those with less resources and more need. Today’s philanthropists are as diverse and unique as the causes they support. Many approach charitable causes with the same drive and commitment they apply to building their businesses. Some take it a step further and establish their own purposeful charities that can be more effective and helpful than some of the more traditional non-for-profits in existence. Of course, businesses gain tax-related and other less altruistic benefits from philanthropic work, but that does not negate the powerful and positive societal impact of the effort.

Sharing Wealth Makes You Richer: Since the recession that gripped the nation in recent years, there has been a lot of light shed on the great disparity of wealth among Americans. The Occupy Wall Street protests reflect just a small amount of those people who feel disadvantaged by the financial upper class. Many people view money and success as if there is a limited quantity of both. Rest assured there is enough to go around. Indeed, wealth doesn’t have to be something that everyone feels the need to compete for, but rather shared and “paid forward” for the greater good. When you focus on multiplying the amount of wealth as opposed to dividing it, you may be extremely surprised how well this mindset can work in favor of your own growth and gain – financial, emotional, spiritual, social and otherwise.

Each year, over 500,000 small businesses close their doors in the U.S. Those that succeed have a plan that not only details strengths and opportunities, but also weaknesses and threats. Bearing the perspectives above in mind will improve the chance for success as a profitable, socially conscious business that benefits the greater good.

Article courtesy of TIRE REVIEW.

You May Also Like

Utilizing Instagram

“When we started, we had no business at all… that’s when I started using Instagram,” Yaghoubian says. “Back then I didn’t know a lot about social media, but it works for business really well, and especially the automotive industry on Instagram.”

The Industry has changed, so should you.

“One picture I posted got 7,600 likes, it reached 112,000 people, I got 982 profile visits from that post, 758 people saved it, and 208 people sent it to other people,” says Aaron Yaghoubian, owner of Arlington Machine in Riverside, CA, talking about an Instagram photo he shared in August of an Evo 8 short block project. “You can’t beat it. Some engine builders are over here crying, but they don’t want to use something that’s free. They have the device in their hand, now download the app and do it.”

Higher Revving Education

We’ve all seen the ads in magazines and online for schools, classes and seminars on tuning an ever-increasing number of engines and even transmissions in today’s cars and trucks. The better ones will include the use of a chassis dyno to show real-time results of the step-by-step methods they teach.

Chassis vs Engine Dyno

We spoke with a couple shops that utilize both dyno types to get their take on the advantages, disadvantages and reasons to have one over the other or both.

Tradeshow Season

While the rest of the world tends to slow down in the fourth quarter, our industry is starting to rev up. That’s because it’s tradeshow season, and the excitement for next year is always palpable!

OE Parts vs. the Aftermarket

Many of your customers believe that OEM parts are better than aftermarket parts. We wanted to dispel some of the myths once and for all. Without getting into the mud about which brands are better. It is important to note that not all parts are created equal, and this includes both aftermarket and OE replacement parts.

Other Posts

Setting Up an Instagram Account

The old saying goes, “A picture is worth 1,000 words.” Well, in the world of social media, that same picture is not just worth 1,000 words, but could also be worth thousands of dollars in new business for your engine shop. By now you’ve likely seen our features on setting up and utilizing Facebook for your business. Next on our ‘to-do list’ is an introduction to Instagram for those of you who haven’t started utilizing this social media platform.

The Potential in Differential

Is growth part of your business strategy? It comes in a lot of different forms, but when it’s adding a new service offering or product for your customers, it can be nerve-racking at the very least. The additional investment in tools, equipment, training or people weighed against the unknown outcome leaves you holding all the risk, unless there is something that’s a perfect fit.

How To Put Your Facebook Page To Work

A couple months ago, we walked you through the setup of a Facebook business page. Hopefully you’ve gone ahead and created that page and took some time over the last couple months to play around with ways to engage with an audience. If not, go back and check out the February issue. It’s worth your while to do so!

Intellectual Property Rights Enforcement

Once you’ve obtained your IPR, then what? What can you do when you find another person or business violating your patent, trademark, or trade dress? Below, we take a closer look at the steps you can take to enforce your IPR against unauthorized use.