How do you compete as a business and how do you compete as a person? Whether you are a business or a staff member your contribution matters a lot to overall success. Staff will, at times, gauge their worth by the placement in the organizational chart and if they have value.
We always work with all levels of a business to ensure that everyone understands where their worth is and how they increase that value through time, learning and experience. As businesses and people grow, they start to understand if things are still working for them and where they can go from the current reality.
As the demand for your business increases, you have the ability as a business or person to investigate economies of scale. What it means, that as you grow you can give cheaper prices on your service or product because the cost it takes you to create your business becomes cheaper. Then you can either lower your price or keep the same price but make a larger profit. Economies of scale can make a lasting impact on all the stakeholders at a company. Suppliers will know that their service is secure, and staff will know that they are in the midst of a company that will be around for a long time because others will find it hard to compete or break into the business.
What is your ability to acquire what you need in your business? This simply put is procurement. It can be acquiring products or services from others to continue to succeed in business. Your ability to procure can make a big difference in your bottom line. If you are a company that doesn’t do much work, then your procurement may be weak because there is no demand and vice versa. However, no matter what size your company is, your person responsible for procurement can make a difference in your bottom line as well.
So as a business of person pay attention to how you procure items in your business. The world is full of options and the ability to conduct business, so ensure that everyone is keeping an eye out for innovation in business to ensure that you are not the expensive option for consumers and as a result potentially hurting your business longevity.
As a company grows, the purchasing power shall increase as well. Everyone knows about how credit works, but what we are talking about is the business credibility in the market. Yes, credit helps tremendously but your overall positive image as a business or person will increase in the market if you keep the power in your favour. We have seen businesses that have the credit to make purchases in the tens of thousands make purchases in the millions because of purchasing power. They are a business or person that stands by their word and looks after those around them. By the business of credibility and you will see the benefits long term.
If you would like to discuss more about procurement strength and purchasing power, reach out to our team at Future To Now Consulting to discuss further with a business strategy consultant.