Using The Top Ten Profit Rules...
Make your company recession proof.

If you didn't realize there were rules, you're not alone. At The Adare Group, we've come up with 10 of them. In each of the upcoming issues, we'll examine each rule in-depth. But first, let's find out what the Top Ten Profit Rules 10 rules are and why following them can make or break a company.

These rules are based on leading business theory interpreted into practical common sense. They mainly require is a degree of intestinal fortitude-the courage to buck the status quo. Deborah House, founder of The Adare Group, has developed these profit rules based upon her personal observations as she worked inside major corporations and her research on what makes a company successful regardless of economic conditions.

Top Ten Profit Rules:

Rule 1: Solve Customer's Critical Problems
Rule 2: Be Externally Focused - The Outside-In Approach
Rule 3: Make quick, tough decisions
Rule 4: Measure actions that produce profit
Rule 5: Don't let the stock market run your company
Rule 6: Innovate, Invest and Inquire
Rule 7: Highly value customized products and services
Rule 8: Only real profits pay the bills
Rule 9: Don't let processes get in the way of profits
Rule 10: Everyone must produce profits

These Profit Rules are very basic. They're so basic that they aren't even taught in any business school. And, every CEO intuitively knows these rules but most companies don't consistently implement them. There are lots of reasons for this-distractions with employees, suppliers, Wall Street and even customers. It's not easy running a multi-million dollar enterprise but most people make it harder than it needs to be.

Following the Top Ten Profit Rules will definitely simplify your business but might not make it easier. Then again, most investments that yield dramatic returns aren't easy.

The Top Ten Profit Rules will make your company recession proof. Most economists agree that the market probably won't mirror the mid-90s for quite a while. So, setting up your company to generate dramatic profitability in a steady economy is critical.

Sustaining and enduring profitability has much more to do with implementing common-sense business rules than panic responses to outside events. The point is this…regardless of the economy; companies make or lose lots of money depending on the quality of their business practices.

The usual ways companies survive a recession is to keep their head down and cut costs until the market comes back. First the support staff goes, then travel, free coffee and when it gets real serious, R&D, marketing and sales gets slashed. But, when you look at these tactics, ask yourself "Is this what I'd do to grow my business? Is this how I'd choose to invest in my future?" Your answer is probably no--even if you don't consider free coffee to be an essential.

And, does it make sense to cut marketing when customers really need to know you're out there with a great solution to their problem. Also, before companies cut staff, do they had zero customer complaints about service and quality? If not, how does cutting staff increases the value offered to customers. If it does, this company had a bigger problem to begin with, and probably needs more than indiscriminate head count cuts. Cutting costs won't grow your business. In the long run, cutting costs reduces profits by reducing service.

As noted by Lee Bristol, "I don't want to do business with those who don't make a profit, because they can't give the best service."

These types of cost cutting moves are never part of any considered business strategy. They're panic responses pure and simple. Now, there are good ways to cut costs. Strategic measures you should practice in good times and bad. But panic responses leave you wide open to lose good people, lose good customers, and jeopardize the future of your company.

OK…but you're probably thinking, we're dying here. Customers just aren't buying no matter what. I'm in survival mode. And, you're not alone. And, you're right. Drastic action may be required in a crisis.

The key is to be profitability in any economy-recession proof-- so drastic actions aren't necessary. If you've set up your company to be profitable in any economy, drastic actions aren't necessary. If you're providing value, people will buy in good times and bad times.

Make your company profitable in any economy by following the Top 10 Rules of Profitability. To get your free, expanded copy of the Top 10 Profit Rules, contact The Adare Group at 630-399-7006, or info@TheAdareGroup.com

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