If You're in the Driver's Seat, Drive the Right Bus

Checking the responses to my quick poll about the biggest challenges you face as an owner or manager it is clear some of you are having difficulty with Controlling Costs, and others Generating Revenue. It struck me today that the two problems require the owner to be in two different places in order to best solve the problem.
First, Generating Revenue is normally associated closely to marketing, promotion and a host of other factors which are tied to your geographic location. Generating Revenue is best solved by the physical presence of the owner who can observe, tinker, chat and shake hands. These types of observations aren't produced by customer counts or staff reports but are instead experienced first hand. Customers respond to the owner in a very different way than they do employees, and are willing to share suggestions with you rather than a staffer. If generating revenue is your main problem, get out on the floor and behind the counter.

Controlling Costs, while there is an observational component, is mostly done behind a desk with meticulous review of costing, ratios and an intricate knowledge of your Financial Statements. The type of waste and loss generated by employees is best observed by management, and followed up by the senior management or owners. The real cost controls are a result of comparing supplier costs for such mundane items as mobile phones, land lines, paper products, milk suppliers and trucking. Today I discovered after speaking with my milk supplier about a cost increase, that local grocery stores are selling milk cheaper than wholesale price in a long standing price war. The savings by purchasing retail rather than wholesale represents over $750 per month. If controlling costs is your main problem, get behind your desk.