WHY YOUR COMPANY IS NOT MAKING PROFITS.
Most of the directors, managers and the enterprise owners are forced to work for long and tiresome hours to ensure that their businesses are making a profit. Well, this is the goal of each and every company, to do one of the herculean issues. This entails convincing someone to pay you to solve a problem for them. If business is done right, both of you are happy.
When people go out on their first date they assume that it will be a smooth ride on the entire dating journey, but this is not the case. They don’t plan for the ups and downs that they ‘might’ encounter in their love journey. This is a similar situation in some of the businesses.
Give me six hours to chop down a tree and I will spend the first four sharpening the axe — Abraham Lincoln.
Most companies only plan their milestones and scaling up their businesses which is not bad, but they don’t take time to indulge themselves in risk management. They think that all their plans will work out as they want them to! This implies that they will beat their competitors, make profit and scale up their businesses. Eight out of ten businesses fail on a yearly basis, their failure can be attributed partially or entirely in the planning of the business.
The planning stage is the foundation of the business and should be cautiously handled to ensure that the timeless existence of the company is not at risk. Things like the location, market research, product planning and development, competition and how to scale up should be dug in depth before the business commences.
Another good reason that can lead the company to make a loss can be the way the company chooses to produce. Agile can be described as a set of values and principles for software development under which requirement and the solutions evolve through collaborating effort of self-organizing cross-functional teams. Not only does it work in the software development industry but also in other industries such as education, marketing, freelance writing and book publishing. One of the Agile principles is customer collaboration over negotiation. This principle helps the organization in two ways; first to save time and secondly to save resources.
Save money in the sense of involving the customer or the market demands in each and every phase of the product development. This means that the organization will finally provide what the clients want or what is needed on the market, guaranteeing them of making sales. The company will save time due to the client or customers’ collaboration. This implies that the company will not use more time to either redo what they had already done or to design a new product due to the demand not existing.
Companies that don’t adopt the Agile system in production tend to die young. According to Jeff Sutherland, the author of “Scrum” — Twice the work can be done in half the time. This means that the company can make more than one hundred percent increment in its productivity when the right methods are put in place. The question still remains: How do Agile and Scrum help you make a profit? Over the years, companies have been spending much time in production only to deliver a product or service that its demand no longer exists in the market.