Drug testing

Increase Profits with No Pain, No Change Approach

Implementing changes, even when they're good for your business, can be tough. As the old adage goes, old habits die hard and it's just as true in business as it is in our personal lives. It's simply easier to take the path of no resistance and revert back to doing what we've always done. Here's a way to skyrocket your profit potential by linking change to pain and payoff.

Whenever I sit with a client who has hired me to assess and identify ways to streamline their business operations, we eventually get around to what I call the "no pain, no change" discussion. I can present a neatly packaged assessment report with recommendations for increasing efficiencies or streamlining processes, but new efficiencies and streamlining requires change. And, change typically meets with resistance because the way of doing things has become habitual.

As the old adage goes, old habits die hard. It happens just as frequently in one-person operations as it does in businesses with 10s, 100s, or even 1,000s of employees. It's just easier to take the path of least resistance by doing what we have always done. And, until you realize how 'doing what you've always done' dramatically affects your bottom line, change is less likely to occur. For any change in behavior, procedure or practice, there must be a desire for it - the benefits of change must become more attractive than the comfort of keeping old habits.

So how can a desire for change be ignited?

That's where the "no pain, no change" discussion starts. Quite simply, I relate the recommendations I make to actual bottom-line benefits. Let me demonstrate by using a real-life client example.

In a business assessment I did last year for a property management company, processing tenant payments was a four-step process from the moment the payment arrived, to the final posting and deposit of the funds. The company had two co-owners and four employees. Three of the four employees were involved in the payment processing procedure.

Now, this may sound like no big deal to you, but keep in mind that, as a property management company, they receive several hundreds of payments from tenants nearly every week for all of the properties they manage. There are many days when no other work is tended to, and they clock overtime to process checks the same day they are received; and then they clock more overtime to catch up on the work that was cast to the side. The more property contracts the business acquires, the more time it takes to process payments. The more time it takes, the more man hours are clocked. The more man hours needed, the less efficient - and more costly - the process becomes.

After talking with employees to understand the process they were using, and listening to the frustrations they were experiencing, it quickly became evident that the current procedure had lost significant value. What used to work perfectly had now become not only more vulnerable to errors, but costly. And, with the business continuing to grow, this was not a short-term challenge.

With minimal investigation I discovered that the process could be shortened to two steps, performed by two employees, with one simple solution -- an upgrade of the property management software they were using.

Naturally, the software upgrade was prominently placed in my assessment and recommendations report. I knew, however, that the owners would view this as an expense that would cost them more than $2,000 and, therefore would not likely top their To-Do list.

Time for the "no pain, no change" discussion.

In addition to recommending the software upgrade, I detailed a conservative estimation of the current 'real' costs associated with this procedure that primarily consisted of overtime and error reconciliation. I then detailed the estimated resulting costs associated with implementing the upgrade. The difference? A savings of nearly $7,500 a year! That's a significant profit leak for a small, 6-person operation.

Do you think the owners were more motivated to change the habit that currently supports the $7,500 profit-draining leak? You bet they were! Suddenly, it was evident that the $2,000 software upgrade was an investment, not an expense. It carries measurable ROI.

Because the client could now see an immediate (financial) pain, there was an increase in desire for immediate (procedural) change. Every critical process of your own business should be looked at with this same "no pain, no change" assessment.

What is it really costing you to do what you've always done?

Identify the pain, and you'll increase desire for change.

Susan Carter is a small business consultant and author of business-building books that help small business owners and soloprofessionals 'do more with less.' Free book chapters and ezine at: http://www.successideas.com

limousine chicago service
In The News:

Methods of Generating New Ideas for Entrepreneurs

Summary: Even with a wide variety of sources available, coming... Read More

Reducing the Stress of Being an Entrepreneur

Starting and running your own business can be exciting and... Read More

Surviving the Three Pitfalls of Business Ownership

The morning sun sheds its brilliance and warmth... Read More

Compensating for Your Entrepreneurial Style-or Lack of Style

I recently took an entrepreneurial quiz which evaluated my answers... Read More

The Role of Statistics in Prospect Modeling

Identifying prospects has come a long way since the days... Read More

How You Can Earn $1000 A Week Part Time

About 6 years ago I started to notice that certain... Read More

The 7 Traits of an Exceptional & Successful Entrepreneur

How often have you either referred to or considered the... Read More

How to Become a Successful Entrepreneur on the Web

Becoming a successful entrepreneur in the online world is no... Read More

Differentiation Strategies for Franchise Companies

With the growing number of franchise offerings recently it is... Read More

Have You Been Thinking About Owning Your Own Business? Or Becoming An Entrepreneur? Part 1

Almost every day, I talk with people who want to... Read More

Key to Starting Your Own Clothing Company

Starting your own private label clothing company is not as... Read More

Something From Nothing, With Something To Share

Betrayal, it can hit you like a load of bricks... Read More

Veteran Entrepreneurs Are Growing In Ranks

When I'm not running my own business, writing articles about... Read More

Bring That Difference To Your Business!

Romans had a phrase for this- First among Equals.Online marketing... Read More

What Makes a Person an Entrepreneur?

Entrepreneurship is generally characterized by some type of innovation, a... Read More

From Employee to Entrepreneur: Taking the Plunge

Before you decide whether or not running your own business... Read More

Do You Have What it Takes to be a Successful Entrepreneur?

Print off this page, take the quiz and find out... Read More

Ten Traits of Successful Entrepreneurs

Successful entrepreneurs have many traits in common. Here are ten... Read More

Traits of The Successful Entrepreneur

Want to know why certain people succeed and others don't.... Read More

PR That Entrepreneurs Often Overlook

If that sounds like you, here's what you may be... Read More

Entrepreneurship Story; Over Regulation in Franchising Final Chapter

Sally and Jim have launched their automotive franchise business and... Read More

Judging Entrepreneurial Ideas

Most entrepreneurs constantly come up with new ideas. Whether they... Read More

An Entrepreneurs Biggest Cost

When launching a new product or company, an entrepreneur must... Read More

16 Vital Traits Shared by All Successful Entrepreneurs

The first step in deciding whether to start a business... Read More

Are You Sure You Want To Start Your Own Business? Part Two of a Series

Why, exactly, do you want to go into business for... Read More

induction lighting led flood lighting fixtures Pete's produce ..