Sometimes we get so overworked that we just can’t see through the fog. We have multiple stimuli which continually push and draw our attention to different places. Sometimes in the midst of all the confusion, pitfalls or setbacks can occur. This is a common problem amongst business owners and it should not be treated lightly.
Preparing ourselves for overcoming obstacles is an integral part of learning how to manage a successful enterprise or operation. Not long ago, I found myself in a dilemma that involved certain expenses within our organization going unpaid. Once I was made aware of the problem I realized it stemmed from alack of available funding in accounts payable. Now at first glance this seems like a headache waiting to happen in dealing with the resolution of this problem, but our executive board was well prepared and ready to execute a solution. We contacted all of our accounts that were slightly delinquent and we notified them of our error, we then immediately transferred money from our cash savings account into accounts payable. After this was completed we contacted our delinquent accounts and we made them an offer to settle any out standinglate payments, in addition we offered to pay 50% of next months payment now to keep good relations.
While our accounts payable department had come across a large setback and obstacle in their daily operation, the executive team was prepared for an issue of this nature to occur, and they reacted accordingly. When you are running a small business like Musical instruments store or new organization, it is incredibly important to review your internal disaster controls. That is, what measures have you developed or do you need to develop that will assure safety in times of business distress? Sometimes financial problems call for establishing an emergency line of short term credit with your local lending institution, or simply keeping extra cash reserves as shown in the example above. Other times you may run into human resource issues that are causing your production to slow down and you must address the problem. This is another good example of how you should prepare yourself for the unexpected.Implementing a human resource crisis management plan will give you the internal organizational mechanisms to confront problems head on before they get out of control.
There are numerous situations that can arise in running your business; Sales deliveries can arrive late, customers can cancel orders, employees can have accidents, and much more. Pitfalls, setbacks and obstacles are likely to present themselves numerous times throughout the life of your business, as well as in your personal life. The key to overcoming these setbacks is to be prepared for any obstacle that may occur by implementing internal controls to help manage the impact of the situation. This is how a successful business continues to thrive.
All too often in business we try to bring together different pieces of our operations to accomplish a more productive output. In bringing these areas of operation together, we should focus on the most important factor to success, and that is synergy. Synergy can best be defined as the interaction of two or more agents so that their combine deffect is greater than the sum of their individual effects.
Think of synergy in terms of a bond, whether you think of a chemical bond or a human relationship bond, the desired result is a mutually beneficial bonding.When we bring our marketing and advertising divisions together to talk about the newest product rollout, we want to promote good communication and healthy attitudes. The reason being, when good communication is used to deliver a message coupled with a healthy attitude, the impact of the delivery is much more effective and residual. In turn, the receiver will respond with a genuine comment that directly relates to the topic being discussed, thereby good synergy’s formed and an instant brainstorming session of productive ideas is created.
Another example of good use of synergy in business is through the relationships you foster with the affiliates of your organization. Let’s suppose you own a car wash business, and you constantly have to reorder soap. The price you pay is too high in your opinion and it takes two days for delivery. Now there is another soap distributor who has just moved into the area who is slightly smaller, but would like to do business with the car wash. This supplier will give you the same soap at a 25% discount if you display a sign at the car wash that advertises his soap. This is a no-brainer, since soap is a primary expense in your business, you would be happy to cut your cost by 25%. In addition the new supplier can advertise his new product at no cost to him. Once again, thisis an example of synergy working for both owners of each business. They combined their locations and services and the result was a superior arrangement for both of them.
The importance of concentrating on forming strong synergy amongst areas of operation in business is directly related to maximizing productivity and efficiency. The better synergy two elements have together, the more productive and efficient those operations will run. The more efficient and productive an operation is run, the more profits will result.