Is It Revenue Producing; Is It Service Affecting
The other day a former corporate executive was telling me the guidelines they used in evaluating business proposals and plans. It’s the title of this article: Is it revenue producing; is it service affecting? When you examine that a bit you come down to two basic principals businesses need to consider. Revenue and service. I personally would turn those around and have service first and revenue second but that is just me and remember I don’t own a business!
Two other key elements in this statement that may need some defining are “producing” and “affecting”. Let’s look at producing first.
All businesses are in the business to produce revenue. Business need to evaluate if how they are operating is producing revenue. If revenue isn’t being produced it won’t be long and the doors will close. To our non-business readers, our Belle Fourche businesses are here to make a profit. If they don’t they can’t stay. It’s the business’s job to see that their product is competitively priced so that you the consumer will shop local and purchase it. Outside money is gravy. So if the business can bring in outside money to our community that is all the better but they still need local support. The well-worn statement, “Shop Local” may need some freshening up but it is still in everyone’s best interests to be a local business supporter. I talked to one business owner who has NEVER been in the Spearfish Wal-Mart. That is amazing commitment to our local business community, and I applaud them for it.
The second key element needing some defining is “Service affecting”. I looked up ‘affecting’ in the dictionary, and it’s synonyms are: have an effect on, influence, act on, work on, have an impact on, change, alter, modify, transform, form, shape, sway. The proposal or plan must have a positive impact on the service the business provides and keep customers first. Business proposals or plans that negatively affect service should be rejected.
The bottom line is this: Business proposals and plans must produce revenue and/or have a positive impact on customer service. Another way to look at it would be: “Do the pros of this proposal or plan outweigh the cons?” Is it revenue producing; is it service affecting?
One business owner I asked told me, “What more, more, more can I do for my customer. What else can I do that makes them come back? Service creates revenue.”
Business is a partnership between owners and customers. Let’s strengthen our partnerships here in Belle Fourche.