High Cost of 'Not Doing

9/11, 2001 has hit a whole lot of business. But the most badly hit was air industry. US airlines were virtually on the ground for most of time rather than in the sky. As old adage says. Planes are safer at the ground. But they are built to fly and that where they should be all the time. Almost whole aircraft industry was badly hit by being grounded. Million of jobs evaporated and billion of dollar went under drain. All these were due to not doing anything.

Peter Drucker, in his book 'Managing for result' defines the cost point in the whole supply chain.

1. Productivity cost

2. Support cost

3. Policing

4. Waste or Idle time.

Drucker accept that to some point all three cost centre productivity cost, support cost, policing cost are imperative to any business. It takes massive investment to produce something and market it successfully. A corner cutting here and there can be welcomed but you can't remove any of these three cost centre at all.

But waste rarely needs to be analyzed. It is usually quite clear that this or that cost cannot produce results; whether we can do anything about it is another thing.

But waste is very hard to find.

These fact are hidden the accounts book only. The normal available account will not show this. You need to dig hard to find these unacceptable costs to your product and services,

In it services industry or any knowledge intensive industry, major concern of any top management people in 2001 was the bench period. As industry defines it as a time when your know ledge worker are sitting idle in the absence of project. This cost awesome money to any organization and pull it into big trouble. Lucent technology faces the similar effect in 2001-02.

Although to avoid these waste effort and tools are totally outside of conventional approach to cost control and cost cutting. They required major, prolonged efforts, but the fact is most cost cutting, let alone the across-the-board cut, does not even touch waste. Yet, in business waste is real cost centre. It required a lot of systematic planning and organized effort to recognize a waste in the supply chain and get rid of it.

Host a Successful Fundraiser

Hosting a successful fundraiser is no accident. It requires planning, commitment, and more than a little bit of salesmanship. If this sounds like a lot of work, make no mistake about it, it is. But it's rewarding work, it's meaningful work, and done the right way, it can be fun work. Fundraisers present wonderful opportunities to generate both income and good will for your organization, to raise community awareness for your cause, and to create a sense of camaraderie within your group. These tips are designed to help your organization get the most from your fundraiser, in every sense of the word.
When planning your fundraiser, the first question to ask is "when?" Timing is very important and depending on the kind of fundraiser you want to hold, certain times of the year of the year are better than others. The fall and spring, with their temperate weather, are wonderful seasons if you're going door-to-door, having a bake sale, or holding a car wash.
If you're tying into a specific event like an Oktoberfest or school fair, then the dates are predetermined, but if you're opting for the brochure or "pre-sales" method, you have some flexibility over your schedule. Generally speaking, a two-week period is ideal - anything longer than that tends to be counterproductive. Avoid times that coincide with school holidays when people may be out of town. Not only do you want to have a lot of people around to buy your product, you want to be sure that you'll have plenty of volunteers on hand to help.
Once you've decided when, the question becomes "what to sell?" Selecting the product for your group to sell is in itself an art form and there are many factors to consider. Who are your expected customers? What image do you want to convey? If you're a sports team, perhaps you want to choose a healthy product. If you're raising funds for Juvenile Diabetes then obviously, you don't want to pick candy. Of course, there are several generic products that appeal to almost everyone, such as popcorn, gift wrap, coffee or citrus. Often an answer is suggested by the season - spring bulbs, Halloween pumpkins, or Christmas trees or ornaments are excellent seasonal fundraising items.
The decision of what to sell goes hand-in-hand with "what company should you choose to provide the product?" This can seem overwhelming at first - search the Web for fundraising companies and you'll get over 3 million pages to sort through, and sadly, not all of these companies are reliable. Get referrals from other groups if possible, or consult unaffiliated, information driven websites like the Fund Raising Ideas Center for more ideas and advice.
Advance promotion is a key element of any successful fundraiser. A week or two before the actual selling begins, start spreading the word. Send letters home to parents and ask them to network on your behalf. Utilize the media - almost every outlet has some version of a Public Service Announcement that they offer free of charge. Put up posters where it is allowed (but be sure to take them down when your event is over).
When you are ready to begin selling, it's time to "rally the troops". Hold a kick-off session during which you explain the financial and tangible goals - "We need to raise $5000 for new uniforms. That breaks down to X-amount of sales per person." Make sure that the tangible reason (the new uniforms, the trip to Paris, the care packages for troops stationed overseas) is part of the sales pitch. If you're working with a fundraising company that offers to send a representative to explain the finer points of selling, then by all means take them up on it!
During the fundraiser, monitor the progress and keep everyone updated. Offer incentives to the person or team that sells the most. It's almost a cliché, but the "rising mercury in a thermometer" tote board is a visual tool that really works!
When the actual selling is over, there are still a few things to do. If you've opted for a pre-sales version of the fundraiser, you have to place the order with the company and arrange a time for the goods to be delivered. Make sure you schedule enough people to unload and distribute the product, and have a plan for dealing with damaged merchandise or incorrect orders. As far as getting the goods to your customer, deliver them in person whenever possible. A personal thank-you note from the student is a wonderful touch and will give your customer a nice, warm feeling that will carry over until the next event.

Five Ways to Improve Your Bottom Line

"A penny saved is a penny earned", the old adage attributed to Ben Franklin, only tells half of the story. A penny saved is really better than a penny earned, because you don't have to pay taxes on it. Here, then, are some time-honored ways for you to save money and improve the bottom line for just about any business:

1. Review and Update Your Business Goals

Many people are adept at staying very busy while accomplishing nothing of value. Don't fall into this trap--and, if you do--dig out as quickly as possible.

In order to succeed, you must set clear goals. If you have employees, those goals also need to be communicated to them. While there are many good and noble goals you can set for your business, one of the most profitable that I often ask myself is "what can I do that will make the most money the fastest?"

This doesn't mean that other goals such as contributing to good causes or providing excellent customer service aren't important. If you don't provide excellent customer service you won't be in business very long anyway. But goals can often be clarified by setting them in order, and determining which will bring the quickest, most long-lasting financial results to your business is a great place to start.

2. Find your Niche and Develop a Competitive Edge

While it's hard to compete with the "big boys", there is plenty of room for small businesses to find their competitive niche. My competitive niche happens to be log furniture. While there is competition in that niche, I don't have to compete with the "big boys" such as Walmart when it comes to selling log furniture. Tracking down Amish suppliers on lonely country roads, developing relationships with those suppliers, picking up, packing and shipping log furniture just isn't part of their business plan. And it probably never will be.

Your niche will probably be something different than shipping log beds, but you can be sure that there is a niche open to you. The key is to find the profitable activity that your business does best, and focus on that.

3. Hire Superior Employees Who Share Your Company Culture

If your business is large enough to require employees, be careful who you choose. In my experience, it's better to pay more for top-notch employees who won't require daily baby-sitting, than to nickel and dime it with job-hoppers who are perpetually unmotivated, late to work, or enmeshed in personal problems so deep that they can't perform their job.

Everybody goes through difficult times in their life, and you need to be sensitive to that. Your company will be miles ahead, however, if you can find employees with the emotional energy to buy into your vision and get excited about their jobs.

You can find, develop and keep that kind of employee by investing significant amounts of time to recruiting and training. Make sure your compensation package is attractive, and, if at all possible, offer health insurance. Incentive compensation or profit-sharing plans can also be quite helpful in motivating employees to previously unheard of heights of achievement.

4. Standandize and Simplify your Procedures

It's amazing how much time developing a simple form can save a company. The more people involved in your business, the more important it is that you have a set of standard procedures to follow. This will reduce training time when employee turnover occurs, lower the chance of errors, and increase efficiency in all aspects of your business.

5. Measure the Results of Your Efforts

Company and personal goals need to be quantified to determine if the desired results are being achieved. Key areas of measurement include the cost, quality, quantity and timeliness of work to be done. Each of these areas can have a profound impact on the bottom line of a business.

Cost: It goes without saying that if two Amish furniture suppliers offer similar quality, furniture design and delivery timing--but one is substantially lower in cost than the other, I go with the lower cost supplier. There are a few exceptions to this rule, but not many.

Quality: Quality is everything in most businesses, and log furniture is no exception. I'm not the least bit interested in shipping defective furniture from Michigan to California and back again, all because a customer wasn't happy. That is a total waste of money, and hits the bottom line directly. This is why we are such sticklers about quality control, and why it's been nearly four years since a customer even thought of returning an item.

Quantity: Generally speaking, if you sell more, you make more. This is certainly the case with rustic furniture suites, especially with the high cost of shipping today. As a result, our website is focused around selling larger orders. We're always happy when somebody orders a log bed, but we try to make it appealing for them to buy a nightstand and dresser too, by offering truly significant discounts. Regardless of your business, you can likely do the same. It's generally easier to sell more product to an already existing customer, than to go and find new customers.

Timeliness: Late deliveries cost money--at least they do in our business. It costs money to overnight packages that could have been sent by UPS ground or the postal service. It costs big money to expedite pallets of furniture. In addition, there is the stress, hassle and disorganization that comes with rushing around to do things at the last minute. This is why I try to leave a timing "cushion" in every furniture order I process. Regardless of what you're selling, you should too.