Business 300

Too many business people tolerate mistakes and defects, instead of addressing the root cause and building a quality solution into the system itself. Following the Jidoka concept - actually both in our business and our personal lives - helps us to eliminate defects and mistakes; eliminate the waste that gets in the way of our margins. Once you understand the cause of the issue, implement a preventative measure. This is called Poka-Yoke. Poka-yoke is a Japanese term which means "mistake-proofing." Insert a relevant poka-yoke into your system that will make it impossible to make the mistake again.

The first factor was covered on the last episode, that being ownership for the plan. It matters that the frontline manager is bought into the vision and strategy, and embodies it for the people. The second factor is clear, but also often overlooked. Competence. In order for the frontline manager to be a linchpin for the success of your business, he must have the adequate competence required of this role.

One of the critical roles in your business is the frontline manager. This is the role of execution. The top leader has the vision, the strategy, the plans. Those are crucial aspects to ensure your organization is moving in the right direction. Is the frontline manager bought into the mission? Does he own it? This is the first factor to consider in making sure you have the right person for the job. The second factor is equally important. But it'll have to wait until next time, when we talk more about how the frontline manager is the linchpin.

Identifying the source of the problem - whether accurate or not - is not the same thing as solving the problem. Identifying the source is not yet taking responsibility for it. But, taking responsibility for a problem is difficult because it assumes work must be done. Address the problem early and quickly without dragging it out. Pull the weeds while they're still small.

What if you choose not to grow? What if you look at your context and decide that you're content with the current size of your business? If growing it requires cash, what should you do if you want to cash in and stop growing? Listen to find out!

Growth requires cash. Because Working Capital is a thing. So, you need to get that cash somewhere. You don't want to outgrow your cash, which is possible. So, you must watch both. You must know what's in your wallet, and how to put more in there.

Growth and cash have an inverse relationship. The more growth your business experiences, the less cash it'll have. Which means, that if you want to grow, you need to make sure your cash can sustain it. This is why it's important for a business owner to understand and be aware of the Cash Flow Statement.

There are two things business-owners pursue that, in a sense, are mutually exclusive. Both of them are good pursuits, and perhaps necessary even if you're trying to maximize the good your business is doing. Both of them are near the core of the reason why a business owner comes in to work, investing his time and strength in building his business. And, reality is that he can only have one.. sort of. The two pursuits are growth and cash.

Customers won’t trade their money for the product if they perceive the price too high for the quality offered. That information is vital for the Seller. The Seller must hear what the Buyer wants. That happens from the pursuit of profit. The Seller's free pursuit of profit enables value for the Buyer. And so, profit is for the customer.

Business people are after results. Actually, everybody's after results. It's just that a business makes it very clear if you have results or not. And, as in all things, results in this trade follow trade-offs. There is good. And there is better. Real results are better than good intentions. For you to have results, you must trade something. That's because, results follow trade-offs.