Hacks to Increase Your Margin

Do you want to increase your margins? Here’s how. 

One of my favorite ways to create margins is to cut the cycle time of your operations. This is what made Toyota very powerful. Waiting is wasting. Map out your processes, especially the most important and repeatedly used ones and ask the question ‘How do I cut the time down? This is possible when you sit down and do it systematically. That's the key, especially when you get a few fresh eyes. Talk to a few colleagues, entrepreneurs, and get feedback. Find somebody that you could share it with. Map the process and cut the cyclic line.  

The second one is the succession. Are you actively delegating the bottom twenty percent of what you do to the rung below you and are you encouraging them to do that further down? Delegation and automation. What you should do is drive this, because essentially you will then climb up with the free time and you will hand that down to the next person, who does that constantly. It creates a learning organization. 

The last one is commodities. Marketing is one of the biggest levers you have in business. It is one of the few areas where you start off as an investor from day one, especially if you figure out how to get a customer. One of the best ways to clear margins is to partner with somebody else who's targeting the same customers as you. Essentially what you do is, instead of just managing the budget you have effectively, you're leveraging their budget and your budget and going forward together. 

Get back to us if you want to explore more about increasing margins.