Market Beating Strategy
Step 2 Diagnose
(Go to pages 11- 14 in your workbook – then click on the video below to play)
Complete step 2- Diagnose, in the space provided in your workbook – pages 11-14.
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Step 2- Diagnose (pages 11-14 in your workbook)
Diagnosing how you make money is your next step.
Understanding what drives your profits as well as your costs is important for developing and prioritizing strategy.
I have worked with teams that knew how they made money overall, but never really understood what was driving most of their income.
While working overseas, I worked with a Hospital that also had a Nursing School.
The school was important to them as nurses weren’t abundantly available. Their nursing school became renown for producing great nurses.
Other hospitals often hired them before they finished their commitments to this hospital.
They were quite frustrated with constant nursing shortages.
When we asked them why this was still a problem, it was because they couldn’t expand the nursing program to meet both the internal and external demand for nurses.
When we again asked why, it was because of a shortage of housing for the nursing school.
At we conducted an analysis for them.
Much to their surprise, we discovered that their nursing school was one of the most profitable arms of the hospital.
Finding a way to expand the nursing school seemed to make much more sense.
When we studied it further, we found that they could pay for new housing in as little as 3 years by adding 100 rooms to their dormitory and 100 nursing students to their program.
This would create more profit for the hospital and solve their constant shortage of nurses.
Something that in the past was always a problem, became their number one strategy for the coming year.
Diagnosing your specific issues, challenges and opportunities is your next step.
Here are some questions to help get you started.
What part of your business drives the greatest portion of your revenue?
What part of your business drives the greatest portion of your expense?
What might be preventing you from growing your most profitable segment?
What new opportunities do you have to grow your business?
Are there ways to improve the profitability of this or other segments of your business?
Are there technological advances that could help you improve?
Are there other markets in which you could operate more profitably? (better margins or lower costs)
What technology do you already own that you are NOT fully leveraging?
Are there new products or services that you could cross-sell to new and existing customers that would drive increased profits?
Are there new partnership opportunities that would allow you to expand at little or no cost?
This is the end of Step 2- Diagnose how you make money
Keep your eyes open for the next video – Step 3 – Forecast – What future do you need to prepare for?
If you have any questions or would like to set up an introductory phone call, please call me.
Visible Progress | 6815 Spring Run Drive, Westerville, OH 43082