Increasing Your Operating Margin.ppt

increasingyouroperatingmargin,lifelonglearning2007gregmarsello,operatingmargin.,operatingmargin.,operatingmargin.,ideallernfinancialformatwithpercentages,$_100%$_10-15%$_45-50%$_60%$_40%$_35%$_5%,whyincreaseoperatingmarginto50%?,surplusmustgrowreservesmustgrowinvestmentsmustgrowstaffintellectualcapitalmustgrowsecurity/independencemustgrow,50%operatingmarginlernfinancialformat,$_100%$_10-20%$_30-40%$_50%$_50%$_30-40%$_10-20%,nomorethan30%!,actionstotake,increasepromotioncosts.bemoretargeted.decreaseproductioncosts.betternegotiating.increaseprices.focusresourcesonwinners.cutthedogs.requireaccountability.stafftrainingplans.lookatthenumbers.,actionstotake,letmoneymakersmakemoney.telecommutingmoreimportant.softwaremustdomoreofthework.web-basedisbest.reducemeetingsto5%oftimeorless.usevirtualoffice.dean/directorbuffersstafffromcentraladministration.focusonthejob.thinkintermsofbusinessunits.centralizeoperations.,actionstotake,diversifydeliverymethodmix.f2fcourses,online,conferences,seminars,contracttraining,consulting.dean/directormustbeoutofday-to-dayandgeneratingopportunities.50%.donotcopythecompetition.beatthecompetition.plan.everythingneedstoknowwhattheyaredoing.,pricingiscritical,knowyourproductioncostsknowyourproductionpercentageforopenenrollment,knowyouraverageparticipantsdomarketpricing,pricingexample,step1.productioncosts=$400step2.productionpercentage=40%step3.requiredincome=$1,000($400/40%)note:contractsalesskipnexttwosteps.step4.averageparticipants=10step5.formulaprice=$100step6.domarketpricing/finalizepriceoptions:reducecosts.offerasis.dontoffer.,movingforward,majorshifttakes3-5years.berealistic.focusattentiononpricing.someoneshouldbeapproving.thinkdiversification.thinkinvestments.useone-yearmarketplan.alsohave