In many ways, your company is a living, breathing organism. Think of your product as the food that keeps your company going. This means that the key to being financially healthy is to have the appropriate amount of product at all times.
Time is the most valuable resource in any operation. Why? Because it’s the only one that cannot be recovered once it’s consumed; it is the only true independent variable in life. Time cannot be managed or controlled, only wasted, so structuring work in a way that makes the most of the time available to your business is key in maximizing your efficiency and minimizing cost.
Buying or selling a business can be scary. The key to success in buying another company is knowing the value that company will bring to your existing portfolio and paying a price to maximize that value. This is not a simple task, by any means. There are many factors to consider when determining the price you should pay for an acquisition; be sure to cover all the bases and conduct a thorough valuation of the company you’re considering before making an offer.
Italian philosopher and economist, Vilfredo Federico Damaso Pareto, developed what has become known as the 80/20 principle, or the Pareto principle. After observing that 20% of the pea plants in his garden produced 80% of the healthy pods, Pareto turned his attention to wealth distribution and found that just 20% of the population owned 80% of Italy’s land. After gathering data from various fields, he arrived at the general principle that 20% of action drives 80% of results. This pattern can be observed not only in economics and gardening but also in business and even personal habits.
Throughput has become a make-or-break standard in the industry and a major focus for manufacturers. Simply put, throughput is the time required for a product to pass through the entire manufacturing process. Ineffective throughput translates to wasted resources and lost sales opportunities. Customers who are left waiting for their products are more likely to move on to a more reliable partner. Since both efficiency and customer retention have significant impacts on the bottom line, it’s important for companies to understand, evaluate, and analyze their throughput time to find potential areas of improvement.
Hiring the right people is the best thing you can do for your organization. Though time may be the most valuable resource, people are the make-or-break factor for any company. Most successful organizations are built upon great people who bring a variety of skills, knowledge, and abilities to the table. The wrong people could have all the time in the world and still fail, but the right people in the right positions can overcome time limitations to create success. Even if a company looks great on the outside, problems with human resources can spell disaster.