Скачать или смотреть The Biggest Mistake $1-10 Million Companies Make - Don Crowther

Here’s the biggest mistake $1 and $10 million companies make, and those that aspire to reach this milestone. This mistake could be resulting in millions of dollars in lost sales and, more significantly, reduced profit margins each year.

So, what's this crucial error and how do you rectify it? The mistake is the standard practice of organizing a company functionally, as opposed to arranging it by product lines.

Let's consider an example so you can see what I mean. Imagine you have a team of ten individuals working for your firm. These team members could be a mix of full-time, part-time employees, or outsourced talent. Your company offers three distinct product lines. Typically, your business structure would be organized by function, with different divisions such as marketing, operations, and technology, working on all the projects simultaneously depending on the current needs.

However, the downside of this set-up is that management and your team's attention is directed towards whatever needs immediate attention, leading to an imbalance in focus. For instance, if everyone's working on your core product, let’s say it’s your major course offering , the other product lines may go unattended for months or even years, causing a substantial financial loss. It also becomes challenging to measure key performance indicators and reward team members accordingly.

I propose a different organizational design - organizing your company around product managers. Product managers function like mini CEOs, each taking responsibility for a specific product line. This model enables easy measurement of performance, incentivizing and rewarding the managers. It also involves having support teams under the product managers, assisting in various functions. Consequently, you can build a full-fledged Profit and Loss statement for each product line, enabling you to identify and deal with any unprofitable products swiftly.

By making this shift, you can expect increased sales and profits, due to the consistent support each product line receives. Product managers concentrate on their respective products, reducing the chance of a product being overlooked. As a result, resources are allocated more effectively, leading to higher potential returns. This approach also leads to a better understanding of customer needs and reduces the involvement of the CEO in every detail, thus giving you more time to enjoy your life outside work.

Sure, this could lead to some competition within the organization, but a balanced reward system, taking into account the performance of both the company as a whole and the individual product lines, could resolve this issue.

Whether you are a company of ten people or a solo entrepreneur, this system could be adapted to your needs. In smaller teams or individual operations, this could mean dividing time and focus across the various product lines.

I suggest you try this out, adapt it to your unique situation and share your experiences in the comments. I'm excited to hear your thoughts on this! Remember, it's all about creating balance, growing your business, reclaiming your personal time, and increasing profitability. Isn't that an enticing proposition? I'm looking forward to hearing your thoughts.

This is Don Crowther, saying just go do this stuff!

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