Many small business have developed and modified their business processes just to get things done! They rarely go back and look at the process to make sure it is the most efficient way that provides the best results. This course identifies some of the methods used by professionals to continually find ways to improve the business.
Doing business better will improve customer satisfaction and increase profitability. Small Business Owners will learn the basic principles of quality management, measuring performance and continually improving their business processes.
-Learn the basic principles of Quality Management
-Identify and measure key profit and satisfaction drivers
-Create a business culture to continually make your business better
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There's Gotta Be a Better Way! Happier Customers and Higher Profits
1. Sigma Free
Presents…
There’s Gotta Be a Better Way!
Happier Customers and Higher Profit
Provided by Sigma College of Small Business, Inc.
2. Agenda
Introductions
Keynote Topic
There’s Gotta Be a Better Way!
Happier Customers and Higher Profits
Break – Refreshments and Networking
Ask
Keynote Conclusion
Questions
Any Time
There’s Gotta Be a Better Way!
Happier Customers and Higher Profits
There’s Gotta Be a Better Way! Happier Customers and Higher Profits 2
Copyright 2010 Sigma College of Small Business, Inc.
5. Customer Satisfaction Drivers
• Knowing What They Care About
– What do your target customers care
about
• can you prove it?
• Process for Delivery
– Is it consistent between customers?
• Employees?
– How do you know?
• Employees
– Is performance within their control?
– How are they trained?
There’s Gotta Be a Better Way! Happier Customers and Higher Profits Copyright 2010 Sigma
College of Small Business, Inc. 5
7. Profitability Drivers
Revenue Drivers Expense Drivers
• Price • Supplies and job materials
• Volume • Labor
• Margin • Marketing and sales
Price x Volume = Gross Revenue • Administration
Gross Revenue ‐ COGS = Gross Margin Profit = Revenue ‐ Expenses
Major Quality Impactors
Fixing Things – materials and labor to re‐do a first time failure
Productivity – Labor costs due to low efficiency in getting things done
Price Concessions – Overcoming “value holes” to remain competitive
There’s Gotta Be a Better Way! Happier Customers and Higher Profits 7
Copyright 2010 Sigma College of Small Business, Inc.
8. Quality Management Theory
Improvement vs. Inspection
Before After
• Inspection to “catch” • Inspection to measure
the problems “prevention effectiveness”
– Rarely focused on the – Used to manage
cause of the bad part improvement process
– Customer sees same, but – Improved process results in
cost of problems is huge less failures – less cost
– No Service application – Can apply to Services
Adjustments are based on measured data
There’s Gotta Be a Better Way! Happier Customers and Higher Profits 8
Copyright 2010 Sigma College of Small Business, Inc.
9. Quality Management Theory
Measurement is Critical
I often say that when you
• Measurement is core to can measure (it) and
express it in numbers, you
modern quality management know something about it,
• Measure process results to but when you cannot
measure it (or) express it
validate improvement efforts in numbers, your
knowledge is of a meager
and unsatisfactory kind.
What gets measured,
gets done.
W. Edwards Deming
Lord Kelvin
There’s Gotta Be a Better Way! Happier Customers and Higher Profits 9
Copyright 2010 Sigma College of Small Business, Inc.
10. Process Improvement
Mowing Service Sales Process
• Advertise $$$ • Measurement
• Manage – Reflect customer satisfaction
Leads $
– Affect profitability
Sales Process
• Call for Appt. $$ CV – Potential measures
• Close Rate
• Site Visit $$$ CV • Cost per Close
• Ave. Job Profitability
• Quote $ CV • Project Selection
– Biggest impact to CS or Profitability
• Close $$
– Need for improvement
CV – Customer “visit” – Can be impacted
There’s Gotta Be a Better Way! Happier Customers and Higher Profits 10
Copyright 2010 Sigma College of Small Business, Inc.
11. Sigma Free
Presents…
There’s Gotta Be a Better Way!
Happier Customers and Higher Profit
Provided by Sigma College of Small Business, Inc.
12. Improvement Method
• Gather current data as baseline
– Close rate • Site Visit
– Cost per close $$$ CV
• Net cost per site visit
– Ave. job profitability Site Visit Improvement Idea
• Provide phone estimate for first time
• Idea Generation service
– Based on customer estimate of
– Phone estimate for first mow area
– Site visit and adjust at first mow – Promotion pricing
• At first mow
• Business Case and Plan – Adjust quote to reflect actual
• Advantages
– Sets expectations – Some payment for site visit
– Plan to implement and test – Demonstrate performance
– Face‐to‐face close opportunity
• Implement and Test
There’s Gotta Be a Better Way! Happier Customers and Higher Profits
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Copyright 2010 Sigma College of Small Business, Inc.
13. There’s Gotta Be a Better Way!
An Attitude of Improvement
• Indicators for Your Business
– Low Repeat Business!
– Heavy review and inspection
– Entering data multiple times
– Employees “sharing” time
• Methods
– Map and measure
– Use employees for great ideas
– Document and formally train on processes
• Change – Prepare and Manage for Change
There’s Gotta Be a Better Way! Happier Customers and Higher Profits
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Copyright 2010 Sigma College of Small Business, Inc.
14. Sigma College of Small Business
Critical Business
• Upcoming SigmaFree Classes
Areas
– 10/7 – Spread the Word! Get the Most
Strategy and Planning
with Integrated Marketing
Marketing and Sales
– 10/14 – Follow the Money! Find the
Value in Knowing Your Financials Accounting and
Finance
• October Sigma College Course Operations and
– Marketing and Sales for Small Business Quality
• Starting Tuesday Oct. 20th Leadership and
• 3 pm to 5 pm EST Administration
Technology and
Innovation
There’s Gotta Be a Better Way! Happier Customers and Higher Profits Copyright 2010 Sigma
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Dedicated to the Learning Needs of Small Business!
College of Small Business, Inc.