On December 2005 I was asked to help manage a shop which is in brink of closure due to mismanagement. By May 2006, the shop is ranked #2 best performer.
Work is still ongoing to make it to become the number #1, but suffice to say that everyone’s already happy with that result.
On May 2006 I was asked to help manage another shop, located near to Pondok Indah. This shop is about to be closed down too, since it’s been plagued by multitude of problems. Worse, the revenue is only about 25% of the previous shop.
Seemed like an impossible case to me, but I accepted it nonetheless.
1. Very low staff morale
2. Very low sales, most likely due to market saturation (about 6 competitors in the same area)
3. Low profit margin
4. Losing money every month / not profitable.
1. Working together with the staff. Developing team work. Increasing staff morale.
2. Diversifying into stationery business
3. Process optimizations
4. Profit margin increase, by various stock optimization methods
5. Creative promotion strategies
Results so far :
1. Since May 2006, revenue has been climbing steadily. Average revenue nowadays are about 33% more than before.
2. Profit margin is becoming better
3. The shop is no longer losing money.
Not too bad for 3 months job I think.
The owner is very happy with the result. He’s extended the shop’s lifeline until December 2006 – the shop will have to start performing (target: increase revenue by at least 33% more), or it will be closed down then.
So it’s clear that my work is not yet done here, because of these:
1. Again, this is a management problem. I may have to fire the second-in-command. I’ll give him chance to change until end of this month, otherwise he’s gone.
Problem: lack of initiative, lazyness, failure to keep promises, lack of discipline.
2. Staff morale is still rather low. It’s a bit better, but it’s now clear that the human resources in this shop is not of good quality. Some of them are lazy, lacking in initiative, avoid tasks that they don’t like, etc.
Some of them are plain idiots too. Example; we have a profit-sharing policy in this shop.
Any profit will be shared with the employee. I don’t think Indomart, Alfamart, or others has such generous policy.
However, some of these employees are keep asking for their share – to which I replied, rather sarcastically, “from which profit ?”
When there’s no profit (the shop is not losing money, but it’s not making money too at the moment), what’s there to share ?
I wonder if some people actually have brain inside their head.
I may have to fire some of them, but again I will first give them chance to change. If they still refuse to change, then it’s their own fault.
Note that your employees are your most important asset. We value them highly – we treat them as colleagues, we try to understand their problems and help them resolve it, we even share our profits with them. We believe in fairness and wealth distribution.
Usually, this works wonders. However, some people are not able to appreciate this.
It may seem cruel of me to fire these kind of people (of course, after giving them chance to change first). But :
1. They may just not belong here. They may be happier working somewhere else.
2. A non-performer not only cost the shop money, but most importantly, they’re a burden to their colleagues.
I’ve worked with some non-performers before, and I have had to work twice or thrice as hard to cover their inabilities / laziness. And, to say it politely, I don’t like that. So I can empathize with my employees in such similar position.
3. There are people out there that can use a good job like these
Note that this is not the only thing that I’m doing. I’m also handling about 3 IT projects, and some personal businesses too. And of course, most importantly, my family.
I’ve went over my (previously thought) limits many times, and although it’s very tiring, it’s definitely is very rewarding to my own personal developments.
I felt like dying at times, but what doesn’t kill you makes you stronger.
So we’ll see this shop again in Dec 2006, and see how it fare then.
Wish me luck. I’ll need it, and a lot of Paracetamol 🙂
28 thoughts on “Mission (almost) Impossible”
Wah saya mau juga ih dapat masukin gimana caranya t4 kerja saya yang merupakan lembaga pendidikan bisa menaikkan omsetnya ?
Nice post.. I also believe that no matter how good our products are, how perfect our IT system is ..The men behind them are more important..
There is no use of owning better products when your men cannot sell them.. In opposite, Dont be afraid having less features n quality products when you have great team to sell them out 😉
In my opinion, Men is the biggest challenges for business
Yeah! I also believe that no matter how good our products are, how perfect our IT system is.. And The men behind them should be having more importance.
:O Men? What about the women out there that put in as much or more work? I hope that I have read a few comments incorrectly. 🙂
No matter what anyone says, employees and contractors as very important as far as products and services are concerned. Value your employees, give them incentives to work hard and your product will sell itself!
nice article…. thx..
I’ve run a small business manufacturing and retailing photographic backgrounds for almost 20 years. Before this I ran businesses for other people. Staff motivation, I feel, is always the secret to success.
No one is going to work hard without some incentive, so I always put a bonus system, that is achievable and fairly immediate in place.
This always worked for me.
Profit share is O.K. but can be demoralizing in hard times!!
Some good Ideas above though
woooooaaaaaaaw thanks a lot bro !
thanks a lot for the good post!!
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Thanks for all informations. ikinci-el-oto
thanks very informative 🙂
imposible is nothing
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Great advice and a very effective approach. As true today, more than ever.
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Nice post with great tittle..
Like this post so much…
This is very inspiring article, definitely It would help to the people who are failed in running their own business, they will get motivation and direction to run and grow their business successfully.
Jadi intinya kita mapping dulu ya dimana dan apa saja problemnya kemudian baru buat strategi penanganannya.Thanks bro!
nice post 😀
happy blogging 🙂
Thank you for sharing your story very interesting. There is just two way of doing things good or bad and if you do good you always be successful in life. Good Luck!
mantab informasinya gan 😀
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