Do I really want to cut back on service to save costs?

Three areas of focus

• My colander approach to managing sanity and reputation

• Why facts are friends• Why cluster management worked for me and

can work for you

Reputation

Emphatically NO

Reputation

• The perception of our customers• Whether we are a good employer• Our financial standing with the bank and

credit ratings• Our reputation as a good or bad payer with

our suppliers• Whether the statutory authorities see us as a

high or low risk• My relationship with Revenue and Customs

“Richard, you need to change your brain for a colander”

My colander approach to managing sanity and reputation

My colander approach to managing sanity and reputation

• The front end• The back end • The middle

The front end

• Drive top line sales• Getting the right price• Add value• Keep customers loyal• Distribution

The front end

Marketing• Is it a cost or an investment?• Measure, manage and review it• Do everything Wendy has suggested!

The back end

But is it a cost or an investment?

Example one• Put me out of business

Example two• £250,000

The middle

Why facts are friends• How much profit did I make last month?• How much profit did you make last month?• What was my cash flow between Christmas

and Easter?• What is your cash flow between Christmas

and Easter?

The middle

Why facts are friends• Increase visibility to help control• Set targets and measurement• Review

The middle

Payroll management• But is it a cost or an investment? • People adding value to my business

The middle

How do I pay for this?• Understand what and how I purchased• Know my top twenty • Manage my brutal costs • Challenge everything

Cluster management works for me.

• The whole is worth more that the sum of the equal parts

• But collectively?• A case study

In summary

Protect your front end• Drive sales• Have a strong pricing policy• Train your staff never to give your customers a

reason not to come back• Use marketing as an investment and measure

what you do.

In summary

Protect your back end• Don’t be caught out by cutting back• Find cost effective ways to stay on top

In summary

Protect the middle• Invest in your payroll by having the best you

can afford doing the best they can.• Train your staff to help drive your profit• Use Facts as Friends

In summary

How do I pay for it?• Understand what and how you purchased.• Know your top twenty• Manage your brutal costs• Challenge everything

Clustering

• Find ways of working together to drive efficiency

• Identify those people or organisations who can help your business move forward

As the sayings go:

‘Sales is vanity, profit sanity’

As the sayings go:

‘Hope for the best and plan for the worst’

But do…

….Buy a colander

Thank you

Any questions