Archive for January, 2008
Don’t sweat the small stuff- Work out the big issues.
On January 30, 2008 in Advice by josh
In the time I’ve spent here at AKT, I am privileged to be part of the executive team. My position as a co-owner has allowed me to experience pleasant meetings, painful ones, and ones I didn’t even need to be in. In the last few weeks, there have been many changes that have directly impacted my day to day operations. I have had to learn not to focus on the small issues but find a solution for the big problems, for the betterment of the company.
While we are growing at an amazing pace, we must be careful or we may find ourselves in a world of trouble. I find myself each day asking “should I care about this?” and “is this the best solution for now, or the best solution for the company?” These are two questions that help the overall growth of a business, not just one facet.
As we continue to bring in more and more clients and business, we must not lose focus of our goal: to do what is the best for the company.
Sometimes, it’s hard to work the few extra hours to make sure something is done right; however, those extra hours are usually what’s best for the company. As you grow, you must ask yourself whether your goal is to win a few small battles or to win the war.
Don’t be Afraid of Change
On January 25, 2008 in Advice by alex
Things will always change; however, it is how one adapts to that change that determines their success.
I have always been a very hands on person and I have made it a point to personally perfect every aspect of my businesses.
Normally, this is a good thing, but at times, it can be difficult to hold yourself back when it’s time for a change. Changing the structure of a business is a necessity for any growing business, but if not handled correctly, it can hinder your growth.
During the creation of AKT Enterprises, I took care of all aspects of the business. From recruiting clients to producing the finished product, everything went through me. It took me a long time to realize that I need to analyze and restructure the entire company.
By doing this, I was able to appoint managerial staff to take over many of the positions that relied on me. This simple change has allowed me to focus on the development of the company.
While it is extremely important to accept change as a method of growth in your company, confidence and leadership are what allow you to smoothly transition your business to the next level.
… And remember, don’t be afraid of change!
Everything is Negotiable
On January 10, 2008 in Advice by alex
When I initially went into business, I did not understand the amount of bargaining strength the “little guy” has with its vendors. Building purchasing power can be the difference between a profitable company and a business that has to scrape by.
If your vendors are not offering you bottom-line pricing, you should realize there is always someone who will do anything to earn your business. No matter how big a vendor is, they will always need consistent business. Prove to them that you are a reliable, long-term client by building a solid long-term purchasing relationship. At that point, you have become an asset, and you’re ready to negotiate better rates on your products or services.
Merchspin, our merchandising company, focuses on screen-printing and modern apparel decoration. We were in business with one of the largest t-shirt distributors in the world to purchase our blank merchandise until around six months ago. Though they were clearly the biggest and the most reliable company we could work with, their price points were far from where we envisioned.
After a few weeks of negotiating, we could not come to an agreement on a price that was competitive with the terms we demanded. It was at that point that we decided to shop our business to other distributors. We landed a deal with an another distributor saving us close to $0.23 per unit. This move has turned into thousands upon thousands in profits on a monthly basis.
Whether your vendors provide a large, essential product for your business, or a small, supplemental piece, it is a vital part of your business and it is essential to continue negotiating all the way down the line. These negotiated price points may become the revenue you take home.
Evaluate Your Expenses
On January 10, 2008 in Advice by alex
It is extremely important to evaluate, and continuously re-evaluate your expenses on a regular basis. In any developing company, things change constantly, making it easier to lose track of your daily, weekly and monthly expenses.
While jump-starting your business, it’s easy to get caught up in the day-to-day operation of the company and to lose sight of your cash flow. Expenses that made sense months ago, might not make sense anymore.
When developing my companies, I rarely took the time to constantly research where each dollar earned was going. Once I actually took the time to evaluate my expenses, I found there was a lot of money to be saved by making fairly small changes in our daily operations.
A perfect example of this scenario is our order fulfillment company, District Lines. District Lines processes and fulfills thousands of individual orders for the online stores of clothing companies, record labels and artists alike.
During this year’s holiday season, our peak sales period, we almost double our normal volume. This increase in sales requires us to hire more workers. Once the holiday surge dies down, it is imperative that we immediately evaluate our staff and make any necessary cut backs. This year, we let things go about three weeks longer than they should have- causing the company much more money than it should have.
This is just one example that proves if you aren’t consistently re-evaluating your expenses, you might be losing money. Keep an eye on your cash flow, and your business will benefit immensely.
