4 Business Decisions We All Face
1. Value vs Affordability
Consumers spend a certain amount on your product because they find it contains a certain level of value. Good value does not mean something is cheap; it could just mean that the product is well priced for the benefits received. On the other hand, customers can only pay a certain amount before they find the product to be unaffordable. As a result, you need to find the happy medium between value vs cost.
2. Time vs Quality
Companies are faced with this dilemma on a regular basis. If you commit 10 hours to a project as opposed to 20 hours on it, chances are the quality will be lower. However, there comes a time where the marginal benefit drops the more time spent on a project. In other words, the more time you spend on a project, the lower the return on investment. It’s best to find the right balance that helps you deliver a high quality product within a timely manner. Unless of course, you’re building airplanes. If that’s the case, take as much time as you need!
3. Customer Service vs Manpower
The customer is the only reason we’re all in business. If they do not feel valued, then they will find one of your competitors who treat them right. How do you maintain the right level of balance between offering great customer service versus employing the fewest amount of people to keep costs down? The trick is to create post-customer service surveys to ensure you have your ear to your customers on a regular basis. If there are consistent requests for hiring more labor, then it’s time to add additional staff.
4. In-house vs Outsource
According to LEAN, you should outsource any part of your company that is not part of your core competencies. Further, you should look at your company and say, what do we do better than everyone else? Product Development? Operations? Customer Service? Digital Marketing? Bookkeeping? Let’s say you do a kick ass job with product development but you don’t have any customers. That’s when it’s time to outsource to a professional digital marketing team who can generate sales for you.