5 Strategies To Get Everyone Aligned Company Goals

Greetings Operators!

Its Monday, and that means the first opportunity of the week to make positive changes in your business…. or to get completely derailed!

Remember, write down the 3 most important things you need to get done this week. Write them on paper on your desk, and continually return to them until they are done.

You can’t get everything accomplished this week, but you can get those three things out of the way.

So think… what are the 3 biggest blocks to getting

• more cash

• more customers

• less fires

• a smoother operation

????

Write them and execute (feel free to email me them if you want accountability!)

In the meantime… here are a few things to help become a better operator 👇

Read | Watch | Listen
Level Up

• 📖 Building A Growth Machine (While its focused on marketing, there are some great insights in building scalable systems and what a well defined process is).

• 📺️ 30 years of business advice (from someone who has built 19 companies).

• 🎙️ Ametek: Industrial Excellence has so many great insights for operators.

MACRO WATCH
Recession Probabilities

There has been a lot of talk about Recession… for the last 10 years. Many of the models out there have predicted 12 of the last 4 recessions - an impeccable record.

The truth is regimes change, and what used to predict may no longer predict business cycles as well.

Something I’ve seen specifically in the last few years - the “economy” doesn’t move as one entity like it did for a decade or two previously. Industrials, consumer discretionary, durable goods… all seem to be moving independently as Real Estate, Corporations, and Consumers each have different capital heath situations and are dealing with the rates in different ways.

That said, I still watch all of the indicators 😉

Here is one for you, the Sahm Indicator for Recessions.

The Sahm indicator is simple:

1. Track 3 month average of unemployment.

2. When it rises 0.5 percentage points from a low, you are in a recession.

3. Some further modify it to

   1. 0.3 = probable recession

   2. 0.6 = definite recession

So what does this mean for business owners? A weak consumer may be the norm for the next few months. A few things:

1. Watch Inventories: Now is not the time to build inventory and prepare for larger than normal demand. Keep inventories lean, especially the closer to the consumer you are.

2. Lean out under-performers: Now is a great time to start to lean out your company. Is there someone that’s been holding you back, but business was booming and you couldn’t sacrifice the manpower? Get ahead of it here.

3. Move to Market Share Grab: During pullbacks, whether officially a recession or not, the game changes from maximizing profit to maximizing market share. Now is the time to grab from other companies not positioned well for a tougher time. Target potential customers who may have quality problems, service problems, and or availability problems with their product or service.

4. Quote Low and Maintain: Quote to keep the business. Right now your goal is market share growth. Recessions build customer lists, and expansions are where you can actually profit from them. Quote to maintain business, not lose money, and build market share.

Every part of the business cycle affords massive opportunities to prepared business owners.

• Recessions allow a slowdown to rebuild process and strength operations, to grab marketshare, to find people who can help at a later time, and assets available at better prices

• Expansions allow a company to profit from its increased customer base, its stronger operations, and to maximize its assets. It allows a business to build a cash buffer which it can then deploy in the next recession to repeat the process.

For this reason, its important to monitor a few key aspects so you know when to hire and when to cut poor performers, when to lean out inventory, when to invest and when to stockpile.

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Coaching Sessions

I have a few openings for coaching business owners on building a scalable operation. If this is something you are interested in, reach out by responding to this email!

THIS WEEK
A Few Things You May Have Missed

MAIN ISSUE
The Alignment Blueprint

Let me guess - you're reading this after (or before if you are like me) hours, probably with a coffee in hand, while your team is off the clock and far from thinking about work. Sound about right?

Don't worry, you're not the only one burning the midnight oil. We've all been there, scratching our heads and wondering:

• Why does it feel like I'm the only one who gives a damn about where this company is headed?

• How come I keep explaining our goals, but everyone just nods along like bobbleheads?

• Why do I spend a fortune on training, only to watch my newly-skilled employees jump ship?

• Am I speaking a different language when I talk about our company vision?

Trust me, I get it. It's frustrating as hell. You pour your heart and soul into this business, and sometimes it feels like you're herding cats instead of leading a team.

But here's the deal: Your team isn't full of slackers or mind-readers. They actually want to do a good job (shocking, I know). The real problem? You're not all on the same page.

What if you could get your team as fired up about your business as you are? What if you could turn their personal goals into rocket fuel for your company? Sounds too good to be true, right?

Well, buckle up, because that's exactly what we're going to tackle today. I've got five practical strategies that'll help you transform your team from a bunch of clock-punchers into a crew that's as invested in your success as you are. These are battle-tested tactics that have helped business owners just like you get their teams in sync and their companies growing.

Ready to stop feeling like you're pushing a boulder uphill all by yourself?

CONCEPT CORNER
Safety Stock Levels

I see it often… you're sitting on a mountain of "just in case" stock, right? Or maybe you're sweating bullets because you're always this close to running out of crucial items. Either way, you're probably wondering if you're doing this whole safety stock thing right.

The truth? Most companies aren't. They're slapping a one-size-fits-all "10% extra" or "keep one box" rule on everything and calling it a day. But let's be real - safety stock is for emergencies (ie when it matters most), and this is not setting us up for success.

Think about it:

• Are you tying up cash in excess inventory that's collecting dust?

• Or are you constantly putting out fires because you don't have enough buffer?

• Maybe you're stuck in a endless cycle of overcompensating - too much stock one quarter, not enough the next?

Each of your products is a unique snowflake with its own demand patterns, lead times, and supply chain quirks. Treating them all the same is setting yourself up for failure.

What if I told you there's a way to tailor your safety stock levels so precisely that you'll feel like an inventory psychic?

Interested in how to use these to set your Safety Stock Levels?