- Players: Lisa Cohen, Jerome Cohen, Garon Bloom and Artwell Nwaila
- Company: OLC Experiential
- What they do: Experiential agency
- Turnover (2017): R104 million, projected to be R130 million in 2018
- Launched: 2003
- Visit: www.offlimit.co.za
Always look for the next opportunity. Never take for granted that what you have today will be there tomorrow. This is the mantra that Offlimit Communications’ (OLC) owners live by, and it’s one they’ve earned the hard way.
In February 2015, Jerome Cohen, Garon Bloom and Lisa Cohen called their 40-strong employees into the boardroom to have the toughest conversation of their lives. The business was losing R500 000 a month, and it was time for serious and radical changes, beginning with salary cuts.
“We’d gone from a R500 000 profit in December 2014 to haemorrhaging money in January,” says Jerome. “70% of our business came from one big client, and their strategy had changed. The result was a major dip in cash flow while they restructured and a new team took over, but we still had overheads and salaries to pay. It was a huge wake up call. The business was in trouble, and we had allowed it to get to that point because we’d become reliant on one big client.”
Jerome, Lisa and Garon hadn’t been blind to the dangers of so much of their business resting with one client. They’d seen what could happen, and had started strategising around it, but not quickly enough. Suddenly the realities were there, and they needed to be adressed.
“There was no time for overthinking it,” recalls Lisa. “We needed to make decisions and run with them; it was time for action. We had to address our situation.”
And so, the partners scrutinised every aspect of the business, evaluating where they were losing money, where they could make money, and where they could save money. With a ten-point profitability plan in hand, they called the entire company in to share what was happening in the business, and what it would take to turn things around.
“We felt like we were going into battle, and we asked our team to go into battle with us,” says Lisa. “That’s really what it was.”
The long-term view
“We laid everything out; all the reasons why we were losing money for the first time since the business launched in 2003,” says Jerome. “Then we unpacked all the points that would get us back on track. And we were honest. We knew it was a scary situation, and we said so, but it was also the best thing that could have happened to us. It opened our eyes to all the danger areas in the business. So many businesses fail after ten years, and often it’s because they don’t get that opportunity. We did, and it meant we could fix things.”
At the time, OLC had been growing steadily for just over a decade. Just before the business started suffering losses, turnover was R50 million. For four months OLC sustained heavy cash-flow losses, but the turnaround strategy that Jerome, Garon and Lisa put in place not only allowed them to claw back those losses by July, but double the company’s turnover the following year.
“Not only did we have a much more sustainable business,” says Garon, “but we were actually positioned for massive growth when the rest of the country was battling through one of South Africa’s worst years in economic history.”
The turnaround wasn’t without its casualties. Jerome’s message to his team was simple: Trust us, get on board and go through this ride with us, and you will benefit from it, because we will make it to the other side stronger than we are today. The team was scared, but most agreed to the temporary salary cuts, which OLC paid back six months later once the business had turned the corner.
“We cut everything,” says Garon. “We even stopped buying tea and coffee at one point.” The business lost some good people, which was unfortunate, but business is often about making difficult but necessary decisions, as Garon, Lisa and Jerome know all too well.
Looking back to move forwards
So, what went wrong? “First, we were far too dependent on one big client which accounted for 70% of our turnover. Today this client accounts for 30%.”
OLC’s relationship with their anchor growth client remains excellent, but being too dependent on their business taught the team a hard lesson.
The second problem was that, like so many businesses, OLC had lost its culture. “We had always been an agile, streamlined business, and somewhere along the way this ethos had changed,” says Lisa. “We’d grown into an agency like so many others in our industry, with layers of staff. We’d started focusing on retainers, which had never been our culture, and we had heavy overheads.”
“We bought into the notion that we were this big agency and we had an ego to match,” says Garon. “As a result our expenses were running away with us. We had too many employees, our premises were too big and we weren’t paying enough attention to the details.”
In a nutshell, OLC was too heavy, and needed to go back to basics to move forwards. The business needed to be streamlined, and even though it lost people in the process, this made the business nimbler. It wasn’t easy, but the rewards have been exponential.
For Lisa, Jerome and Garon, their biggest post-turnaround challenge has been sustaining their growth. “You need to get into the detail,” says Lisa. “If you don’t know your numbers and exactly what’s happening in your business, it doesn’t matter how brilliant your strategy is. Success lies in how well you execute that strategy.”
The team’s goal is to be the top experiential agency in Africa, and to achieve this goal, they have a number of key strategies in place, starting with people.
“The number one strategy of the business and our core KPI is having the right people on board,” says Jerome. “We want to sleep at night as much as our clients, and the ability to do so begins with our people. The old cliché stands — if you think it’s expensive to hire a professional, wait until you hire an amateur. When we started our turnaround three and half years ago, this was a critical component for us: Less people, better people, more business.”
“Right from the start, we developed an entrepreneurial mindset,” explains Lisa. “Our ‘employees’ are our partners. Everyone in the business takes ownership of their role. They receive equity and we have a profit sharing model. Our business, is their business.”
“We’re quite disruptive because we have a flat structure,” adds Garon.
“Everyone needs to be well-rounded and able to lead clients and production. We avoid having too many parts in the process. We ask a lot, but the result is a high-performance culture and quick turnarounds. A well-rounded person can turn things around quickly because they can sit in a client meeting and not need to refer to other people. They don’t need to speak to a production person, or a client service person to be able to answer questions — they do everything themselves.”
The ideal of multifaceted roles begins at the top. “As a leadership team we work actively with our clients,” says Lisa. “We’re involved with every new client to continually grow the business. That’s the secret formula. When you’ve got clients, give them the best, and you will naturally start to grow them (and your business).”
Lisa, Jerome and Garon are all big believers in the powerful impact of positive energy. “We see this with our clients every day, and we want to make sure that our people bring that same essence to every interaction, both with each other and our clients. The more positive you are and the higher your energy, the more you’ll attract people to you. We keep this philosophy top of mind in every interaction, everyday.
“We have an ethos of care and this continually helps us grow. It’s much better to keep and grow existing clients than to constantly seek new clients. Staff who care about clients and each other, and who bring an attitude of gratitude and generosity to everything they do, naturally nurture growth — in themselves, the business and our clients. People know when they’re working with suppliers who care about them. Staff who don’t stay at OLC generally don’t have that feeling of care for clients.”
This ethos means that cultural fit is important. If you’re reliant on your team’s focus, abilities and attitude, you need to make sure you have the right people in the organisation — particularly if there is equity and profit share. As most entrepreneurs know, this is easier said than done, but the OLC team has fine-tuned their hiring process over the years, and the results bear testimony to this.
The power of people
“We always employ smart people who are on top of their game,” says Lisa. “These types of individuals can learn anything. Smartness is an attitude; a mind set.”
OLC’s industry is small enough for them to keep track of who is good, and whose career trajectories they want to monitor. “LinkedIn is really useful,” says Lisa. “You identify who you want to potentially work with and trace their trajectory.”
Gut feel also plays a role. “After thousands of interviews we’ve learnt to trust our instincts about who will and won’t work well within our environment,” says Jerome. “The important thing is to be involved in all new hires ourselves. You can’t delegate the final decision of a new hire. It’s a critical component of the business and as the custodians of the company’s vision, it’s up to us to find good cultural matches.”
That said, the team is aware that interviewing candidates isn’t enough. “In the past we’ve employed people with high IQs who don’t deliver in the role, so we need to test cultural fit, attitude and how people work,” says Garon.
Every new team member at OLC begins on a two-month probationary contract. “We need to see if you can walk your talk,” says Lisa. “We’re upfront and clear about our terms and expectations. This is essential. Everyone needs to know where they stand. We’ve built up a great client base, which attracts talented people to our organisation. They want to work with the best brands, and they know that we are at the top of our game.
“It’s up to us to highlight the chemistry, culture and agency spirit of OLC, and to be clear on why these are so important to us. Once these foundations are laid, we can then review and say, ‘this isn’t working out, and this is why’.”
“You can’t know a person’s skills until you see them in action. Titles are given too easily, and our benchmark for roles is higher than many others in this industry,” adds Garon. “We don’t take anything on face value.”
“We want people to take charge and be proactive,” says Jerome. “We’re not interested in people with glass ceilings. People who can stretch and scale themselves and want to be well-rounded work well in our environment.
“We are also very clear on deliverables. For example, we are clear on what an account director position involves and what the individual’s deliverables are. These need to be clear and non-negotiable. You’re only at that level if you’re delivering on those KPIs.”
OLC believes in playing to people’s strengths. If a hire hasn’t worked out as planned because the skills to deliver on the entire role aren’t in place, a freelance contract is offered, giving the individual an opportunity to work within their skill zone, and to give them time to find another full-time position.
“The common denominator between all of us is that we’re always looking for the next opportunity,” says Garon. “You can’t take it for granted that what you have today will be there tomorrow. We’re always identifying new assets, where we can leverage our current offerings into new territories or verticals and where we can add value.”
“We put together a plan to develop a horizontal structure, with different divisions to maximise our offering. Each division has its own strategy, manager, budget and incentives,” says Jerome.
“We started by looking at the business in its entirety. What was profitable? What should we focus on? And how could we work from our core but offer more to the market? We scale off our core,” says Lisa.
“We focus on one innovation a year. Last year it was building our PR and Influencer division. The year before it was all about our asset rentals — building up our asset base so that we could rent our own assets to clients instead of contracting out the business — this year it’s been our expansion into Africa, and next year we will focus on digital innovation. When you have verticals, you can upsell by offering your clients what they need. It’s win-win for everyone.”
Developing a promo division, an assets and warehousing division and the PR and Influencer division is all about owning the value chain. “We realised it made more sense for us to invest in these assets than to continue renting.”
This resulted in a short-term loss while they were purchasing the assets for a long-term gain, but today most of these costs have been recovered and have generated more value.
“We also embarked on an aggressive new play for business. The entire organisation is responsible for new business. Everyone is incentivised to bring in new clients or upsell them,” says Garon. “This brings in new business, but it also keeps everyone focused on building relationships and delivering top-quality service. If you make a client’s life easier, if you take some of the pressure off them, they will not only appreciate you, but they’ll always want to do business with you. We have many clients who started off at one company, moved and wanted to continue working with us, thereby adding a new client to our portfolio.”
“The relationships we form are crucial, and this goes back to who you employ,” agrees Lisa. “We dont exist without our clients, neither do we exist without each other, and because we understand this everyone at OLC is expected to go the extra mile and really put care into what we do as a business, both for our clients and the world in which we operate.” EM
OLC’s 6-point Profitability Plan
When faced with losses for the first time in 15 years, Jerome, Lisa and Garon put a simple 6-point profitability plan into action. The plan was unpacked to the entire team, and progress was monitored hourly and daily.
“The difference between success and failure is a sense of urgency.” — Tony Robbins
- OLC developed a clear profitability plan by auditing where the business was most inefficient and where the team could build more profitability in obvious ways. We scrutinised every area of the business, and every client, throughout the value chain, right down to tea and coffee spend. We looked at where we could do more, where we could work smarter and where we could improve profit margins.
- Staff headcount was lowered to achieve higher recovery against billings. We trimmed our resources by putting together a simple strategy: Less people but of a higher calibre skill-set that can problem-solve, drive many projects at once and apply strong thinking to push the boundaries. This created a streamlined structure allowing for major output in comparison with the size of the team, lower duplication and use of our field managers as account executives for specific campaigns. This allows us to attract the right talent without increasing monthly salary expenses, as these resource costs are factored into the budget.
- OLC’s shareholders put their pride aside and moved from their fancy office to a smaller one, cutting their high rental costs. We put our ego aside and downscaled our offices, creating a very small senior and experienced team to drive the return to growth.
- Every person in the business was involved in reaching daily growth targets. We created a culture of partnership, not staff, where everyone benefits from the growth and profitability of the business. We stayed transparent and brought the team in to help us turn things around.
- OLC embarked on an aggressive new client acquisition strategy. Our focus was to diversify revenue with additional clients to offset the risk of clients that were dominating our revenue. We kept our focus through daily management sessions on new business action. Business development became a daily task for the whole management team, acting with a challenger start-up mindset and ringing a bell every time we won a new piece of business to drive competitive spirit. This included a PR plan, a new website, social media, cold calling, growing our client base, making sure we retained clients and becoming more selective in the briefs we pitch for. We even put together ‘pitch guidelines’ and rules to stop wasting time, money and resources on pitches that are just procurement exercises.
- An asset rental division was created. We bought all the elements we had been renting to increase profitability. The idea was to own the value chain and pursue new divisional innovations.
- You need innovation, anticipation and resilience. Innovation is all about looking ahead, but you also need to push your brain into the negative to prepare for anything. You must learn to anticipate what could go wrong and prepare for it. A certain amount of stress and having your back against a wall drives you. We need more of that if we want to achieve greatness, not less. Resilience is the mindset that can turn a negative into a positive. That’s been a huge life lesson for me. My number one mantra is to always look for a way to turn a negative situation into a positive. That’s where our biggest opportunities lie. — Jerome
- Top leadership teams are balanced. Lisa is a top strategist, Garon is a production and logistics guru, Jerome is a quintessential entrepreneur, and their fourth shareholder and partner, Artwell Nwaila is a top-level creative. In OLC’s start-up days Jerome did everything, but while you can build a successful start-up like that, growth requires a balance of skills and expertise. You can’t build a high-impact business if you’re doing everything.
- Be a caring organisation. Although we’ve always had a high-performing culture and can have tough conversations around delivery, we also genuinely care about our team. We make sure we’re perceptive and pay attention to everyone’s personal lives as well. You can’t expect your team to care about clients if you don’t care about them. — Lisa
- Cross-border growth should be done strategically. Over the last year OLC has penetrated markets in Nigeria, Angola, Zambia, Cameroon, Mozambique, Namibia and Botswana. We identified our key growth areas, potential partners on the ground and which clients to farm in those areas before we made a move. Now we’re focused on getting all the great campaigns we are running to the rest of the continent through one point of contact project manager. There’s local follow-through, and our clients know that we have one view over everything. Quality and consistency are key. We can activate in five different African markets, but everything is coming from a central point. — Garon
- Be quick and agile, but comprehensive as well. There’s no more space for companies that are small. If you want to make an impact in your market you need to be able to give a 360-degree offering to clients. This doesn’t mean you should lose focus. Stick to your space, but cover everything within that space. You also need to be able to make quick decisions that teams can immediately action. Whatsapp has been a game-changer for us. We don’t wait for diaries to clear to hold long meetings — if someone has an idea it’s sent out, opinions are offered, decisions are made and we hit the ground running.
“You can’t take it for granted that what you have today will be there tomorrow. We’re always identifying new assets, where we can leverage our current offerings into new territories or verticals and where we can add value.”
Scaleup Learnings From Our Top Clients – What The Most Successful Entrepreneurs Do Right
So, how do our successful clients move through these constraints to scaling up? We see four key drivers of success, and they are: people, strategy, flawless execution and finance.
You’re out of your start-up boots, staff is increasing, your client base is growing, revenue is up and you’ve proven your case to the market. Now it’s time to scale up. The challenges of this vital growth phase are different and it’s a time that demands different mindsets and different actions. In a world littered with small business failures, it helps to be well-prepared for scaling up using a proven methodology. At Outsourced CFO, we get an inside look at the success factors of our clients who are mastering the transition.
On the one hand, scaling up is a really exciting phase; this is what moves you into real job creation and making an impactful contribution to economic growth. On the other hand, it is really hard to scale up successfully. We see three major constraints that limit companies’ transition from start-up to scale-up:
The business has to have the leadership that can take it to the next level. When you start scaling up, especially rapidly, the founders can no longer do everything themselves. The team must grow and include new leadership talent that can take charge and execute so that the founders are working on the business instead of in the business.
The processes, procedures, networks, systems and workflows of the business all need to be scalable. This is imperative when it comes to your infrastructure for the financial management of your business. You’re only ready for growth when your infrastructure can seamlessly keep pace.
Scaling up demands more innovative marketing and storytelling so that you can more easily connect and engage with the new employees, clients, network partners, investors and mentors that need to come along with you on your scale-up journey.
Businesses that build a market conversation and a compelling brand narrative during their start-up phase are better positioned to have this kind of market access when they need to scale up.
It is critical to have the right people on your team. Our successful entrepreneurs have what it takes to attract, inspire and retain top talent. A strong team of smart, ambitious and purpose-driven people who love the company and want to see it succeed contribute greatly to a world class company culture. They are adept at communicating a compelling vision and establishing core values that people can take on. These entrepreneurs are tuned into the aspirations of their people and focus on developing leaders in their teams who can in turn develop more leaders.
It is planning that ensures that the right things are happening at the right times. At successful scale-ups strategies and action plans are devised to ensure that the most important thing always remains the most important thing.
Strategy includes input from all team members and setting of good priorities for the short, medium and long term. Goals are clear and everyone always knows what they are working towards. The needle is continuously moved because 90-day action plans are implemented each quarter to achieve targets and goals that are over and above people doing their daily jobs.
Top entrepreneurs are not just focused on what operations need to achieve, but how the business operates. They have the right procedures, processes and tools in place so that everyone can deliver along the line on the company’s brand promise. Frequent, quick successive meetings ensure the rapid flow of effective communication. Problems are solved without drama. There is no chaos in the office environment. Everyone is empowered to execute flawlessly to an array of consistently happy clients.
Everyone knows that growth burns cash. A rapidly scaling business faces the challenge of needing a scalable financial infrastructure to keep the company healthy. Our successful entrepreneurs pay close attention to finance as the heartbeat of the business, ensuring that everything else functions. They look at the tech they are using for financial management and for the ways that their financial systems can be automated so that they can be brought rapidly to scale. The capital to grow is another vital finance issue.
The best way to finance a business is through paying clients on the shortest possible cash flow cycle. However, when you are scaling up and making heavier investments in the resources you need for growth, it is likely that you will need a workable plan for raising capital. Our scale-up clients know the value of accessing innovative financial management that provides high level services to drive their business growth.
Navigating the scale-up journey of a growing private company is one of the hardest but most rewarding of careers to pursue. Having people in your corner who have been through this journey before helps take a lot of pain out of the process. No growth journey looks the same, but there are tried and tested methods that will – if applied diligently – lead to definite success. Happy scaling!
That Time Jeff Bezos Was The Stupidest Person In The Room
Everyone can benefit from simple advice, no matter who they are.
When you think of Jeff Bezos, a lot of things probably come to your mind.
You likely think of Amazon.com, a company he founded more than twenty years ago, that’s completely disrupted retail and online commerce as we know it. You probably also think of his entrepreneurial genius. Or the immense wealth that he’s built for himself and others. You may also think of drones, Alexa and same-day delivery. Bezos is a visionary, an entrepreneur, a cutthroat competitor and a game changer. He’s unquestionably a very, very smart man. But sometimes, he can be…well…stupid, too.
Like that time back in 1995.
That was when Amazon was just a startup operating from a 2,000 square foot basement in Seattle. During that period, Bezos and most of the handful of employees working for him had other day jobs. They gathered in the office after hours to print and pack up the orders that their fast-growing bookselling site was receiving each day from around the world. It was tough, grueling work.
The company at the time, according to a speech Bezos gave, had no real organisation or distribution. Worse yet, the process of filling orders was physically demanding.
“We were packing on our hands and knees on a hard concrete floor,” Bezos recalled. “I said to the person next to me ‘this packing is killing me! My back hurts, it’s killing my knees’ and the person said ‘yeah, I know what you mean.'”
Bezos, our hero, the entrepreneurial genius, the CEO of a now 600,000-employee company that’s worth around a trillion dollars and one of the richest men in the world today then came up with what he thought was a brilliant idea. “You know what we need,” he said to the employee as they packed boxes together. “What we need is…kneepads!”
The employee (Nicholas Lovejoy, who worked at Amazon for three years before founding his own philanthropic organisation financed by the millions he made from the company’s stock) looked at Bezos like he was — in Bezos’ words — the “stupidest guy in the room.”
“What we need, Jeff,” Lovejoy said, “are a few packing tables.” Duh.
So the next day Bezos – after acknowledging Lovejoy’s brilliance – bought a few inexpensive packing tables. The result? An almost immediate doubling in productivity. In his speech, Bezos said that the story is just one of many examples how Amazon built its customer-centered service culture from the company’s very early days. Perhaps that’s true. Then again, it could mean something else.
It could mean that sometimes, just sometimes, those successful, smart, wealthy and powerful people may not be as brilliant as you may think. Nor do they always have the right answers. Sometimes, just sometimes, they may actually be the stupidest guy in the room. So keep that in mind the next time you’re doing business with an intimidating customer, supplier or partner who appears to know it all. You might be the one with the brilliant idea.
This article was originally posted here on Entrepreneur.com.
How Sureswipe Built Its Identity By Building A Strong Company Culture
Culture is unique to a business, it’s the reason why companies win or lose.
A company’s culture is its identity and personality. Since this is closely linked to its brand and how it wants to be viewed by its employees, customers, competitors and the outside world, culture is critical. The challenge is understanding that culture contains unwritten rules and that certain behaviours that align to the culture the company is nurturing should be valued and cherished more than others.
At Sureswipe, the core of our culture is that we value people and what they are capable of. We particularly value people who are engaged, get on with the job, take initiative, are happy to get stuck in beyond their formal job descriptions, and who sometimes have to suck up a bit of pain to get through a challenge.
We include culture in everything we do, so it’s a fundamental element in our recruitment process. In addition to a skills and experience interview, each candidate undergoes a culture fit in the form of a values interview. We look for top performers who echo our core values (collaboration, courage, taking initiative, fairness and personal responsibility) and have real conviction about making a difference in the lives of independent retailers. If we don’t believe a candidate will be a culture fit, we won’t hire them.
If we make a mistake in the recruitment process, we won’t retain culture killers, even if they are top performers. This is such a tough lesson to learn, but it liberates a company and often improves overall company performance.
Culture should be cultivated, constantly communicated and used when making decisions. At Sureswipe, we often talk about what it takes to win and have simplified winning into three key elements: A simple, yet inspirational vision; the right culture; and a clear and focused strategy. The first and third elements can be copied from organisation to organisation. Culture on the other hand is unique to every business and can be a great influencer in its success.
Catch phrases on the wall are not the definition of culture
A strong culture is purposeful and evolving. It’s what makes a company great, but also exposes its weakness. No company is perfect and it’s important to acknowledge the good and the bad. Without it, we cannot ensure that we are protecting and building on the good and reducing or eradicating the bad.
Mistakes happen. That’s okay. But we are very purposeful about how mistakes are handled. Culturally we’re allergic to things being covered up or deflected and have had great learning moments as individuals and as an organisation when bad news travels fast. It’s liberating to ‘tell it like it is’ and almost always, with a few more minds on the problem at hand, things can be rectified with minimal impact.
Culture should be built on values that resonate with you and that you want to excel at. In our case, some are lived daily and others are aspirational in that we’re still striving for them. In each case we genuinely believe in them and encourage each other to keep living them. This increases the level of trust within the team, as there is consistency in how people are treated and how we get things done.
We are always inspired when, after sitting in our reception area, nine out of ten visitors will comment on the friendliness of staff. We hear their remarks about how friendly the Sureswipe team is or a potential candidate will talk about the high level of energy and positivity they experience throughout the interview process.
These are indicators that our culture is alive and well. It’s these components of our culture — friendliness, helpfulness and positivity — that cascade into how we do business and how we treat our customers and people in general. Being able to describe your culture and support it with real life examples is a great way to communicate and promote the type of behaviour that is important and recognised within the organisation.
Culture doesn’t just happen
We are fortunate that culture has always been important to us, even if it wasn’t clearly defined in our early days. As we grew it became important to be more purposeful in the evolution of our culture. About four years ago, the senior leadership team and nominated cultural or values icons were mandated to relook all things cultural.
A facilitator said to us, “You really love it when people take the initiative, and get very frustrated when they don’t.” That accurate insight became core to our values. We love to see people proactively solve problems, take responsibility for their own growth, initiate spontaneous events, change their tactics or implement new ideas. It energises us and aligns to the way we do business.
We celebrate growth and love to see our staff getting promoted due to their hard work and perseverance. We recently had one of our earliest technicians get promoted to the Regional Manager of Limpopo. It was one of the best moments of 2018.
Be purposeful with culture, describe it, communicate it and use it in all aspects of business. Culture should change. Don’t allow phrases like ‘this is not how we do things,’ or, ‘the culture here is changing,’ to stifle the growth and development of your culture. When done correctly change is a good thing. Culture is driven from the top but at the end of the day it’s a company-wide initiative. Design it together with team members from different parts of the organisation to get the most from it. And then make sure everyone lives and breathes it.
The best ROI is achieved when you stop wasting money.
Peter Drucker once said that businesses have two main functions — marketing and innovation — that produce results. “All the rest are costs.”
If you agree, that means that the average business has a lot of fat to trim. Obviously you can go overboard trying to cut costs too. My philosophy has been to look at some of the general areas where you can add some efficiency but not at the expense of impairing your most valuable resource — your focus.
The following cost-cutting measures will do that. Think of these as adding value to your company, whether it’s time, creativity or a closer connection to your consumers.
Uncover inefficiencies in your process
This is where I begin. In fact, it was analysing the inefficiencies of legal communication and knowledge sharing that led me to create Foxwordy, the digital collaboration platform for lawyers. I noticed that attorneys in our clients’ legal departments were drafting new documents from scratch when they could pool their knowledge and save time by using language that a trusted colleague had employed in a similar document. Business is all about process. When you create a new process, or enhance an existing process, you will drive cost efficiency.
Refine your process, then automate
If existing processes are lacking, it is time to create process. If you have processes, but they are not driving efficiency, it’s time to redefine your process. Either way, a key second step is refining processes that are needed in your business. Only then can you go to automation, since automating without a process will result in chaos — and won’t save time or money. Similarly, automating a poor process is not going to give you the cost-saving results you are looking for.
Thanks to the Cloud, there are very accessible means of automating manual processes. For instance, you can automate bookkeeping functions with FreshBooks and use chatbots to interface with clients — for very basic information. If you’re a retailer, a chatbot on your site can explain your return policy or address other frequently asked questions. Automating such processes allows you to spend more time focusing on clients and customers. Technology alone isn’t a panacea for all business functions, but if you find something you’re doing manually that can be automated, take a look and consider how much time and process definition automation would save you.
Rethink your outreach
Marketing and outreach are usually big and important challenges for an organisation. In my experience, there are two main components to successful marketing — knowing your customers and using the most effective media to spread your message. For the first part, I recommend polling. There are various online survey services that offer an instant read on what your customers are thinking. You may think business is humming along, but a survey could reveal that while consumers like your product, a few tweaks would make it even better.
For the second part — marketing messaging — once you have a firm idea of your marketing messaging, Facebook is a great vehicle for outreach. The ability to granularly target customers and create Lookalike audiences (from around 1 000 consumers) can help grow your business.
Scrutinise your spend history
There are tools that can help you assess spend history and find cost-cutting opportunities. For example, you might be able to take advantage of rewards or loyalty programmes to reduce common business expenses, like travel, or consolidate vendors for a similar function. If you have a long-standing relationship with a vendor, negotiate better pricing.
The most important elements to keep in mind are resources that make your company special. Your company may be built on one person’s reputation and expertise. Guard against tarnishing that reputation with inappropriate messaging in advertising or social media. If your company’s special sauce is intellectual property, protect that too. But everything else — ranging from physical property to salary and benefits — are costs and should be considered negotiable. — Monica Zent