6) Goals for 2025: Have a plan, set goals, write it down. Share with everyone. Your people need to know what they are striving for. The CEO needs to set goals that support the company’s vision. Goals should be simple: Get 10 new customers in region X, region Y, region Z. Improve on-time deliveries to 90%. Increase revenues from selling inventory management services by 15%. Start the year with a handful of realistic goals. Armed with measurable goals, your people can and will deliver.
7) Margins: Not understanding margins will kill your business faster than any economic downturn. There’s the joke about the guy who sells below cost, but figures he’ll make it up on volume. Many warehouses do just that. They buy valves at $150, then sell them for $165, thinking they’ve made a tidy $15 profit/valve, never accounting for overhead, handling, inventory. Instead, they are out about $7/valve. Revenues are up, but they are in deep trouble.
8) Cash is king: It is all about cash flow. Great vendor partnerships, delighted customers, fat margins and enviable customer service are all wonderful – if you can’t make payroll or pay the bills, it’s a problem. This happens to the best of companies. Think of the nature of our business. You pay rent, lease the trucks, buy the inventory. Lots of cash goes out the door before making a sale. Never ever take your eye off the cash!
9) Training: Investing in your employees pays you back handsomely. Why buy a new IT system if your people don’t know how to use it? How about salespeople and warehouse workers – do they know your full product line? Do they know what’s in stock and where? Can your company fill orders