In my School of Entrepreneurship (thesoe.com) I have an exercise called The Diamond Cutter. It’s about taking a business that is not making money, and making it profitable.
A Diamond Cutter gathers up the past, adds new thinking, and optimizes the business.
You have to understand what factors got the business here – what is good and what is not so good.
Then make intelligent decisions about what to do.
You look at people, your place, your product and market, your marketing, sales channels, production, and software, and all the KPIs. To set things right you have to see things right.
By turning the right dials the right way in each function (department), you can find a way to optimize revenue and minimize expenses so that you can run the business on 80% – 90% of it’s revenue, and have a profit left over.
Do you need to do some Diamond Cutting? Only the leader can initiate it.
Go, Tony!
Grateful for you, too, Larry.