Professional competition, foundation of one's reputation
If you're a lawyer, engineer, doctor, architect, technician,
accountant, fashion designer or any other independent professional who
sells a specialised skill, you probably find the business end of your
trade a chore. After all, you didn't spend years in college, university
or apprenticeship to learn how to build a business, manage your
customers or to market your knowledge for commercial success. You would
rather pursue loftier goals like arguing cases in court or designing
award-winning buildings or healing the sick.
This is because of your natural tendency to focus solely on the
practice of your skill and neglect the business aspects of your
practice. Professionals are so pre-occupied with practice and most often
think of money ignoring the long-term sustainability of customers.
Business skills have never been more important for doctors, lawyers
and other professionals, who face more competition today than before and
with cost of operations continuously increasing. It isn't enough just to
be a good professional anymore; you have to be a good businessman. To
give your business skills a checkup, given below are simple business
principles that professionals can use when managing a practice for right
returns.
Need for a business model
Need for a business model. It's so fundamental for any professional
to understand the concept of business model as the foundation to build a
sustainable business. From an operational perspective, the business
model is simply a working description that includes the general details
about the operations of a business. The components that are contained
within a business model will address all functions of a business,
including such factors as the expenses, revenue, operating strategies,
work culture, sales and marketing principles, and procedures.
Anything that has to do with the day-to-day functionality of the
profession can be a part of the business model. From financial
perspective, a business model is nothing but a representation of how an
organisation makes or intends to make money. The purpose of the business
model is to communicate the value proposition of the service offered to
the client define and identify the target audience who are my preferred
clients; decide on the communication and distribution channels to reach
clients; allocate the key resources needed to make the business model
possible; determine revenue streams generated through the business
model; identify the cost structure resulting from the business model;
formulate the competitive strategy; and differentiation to create
competitive advantages. Once the model is in place, professionals need
to focus on day to day operational management. In this, there are a few
fundamental requirements which need to be managed effectively to achieve
the desired outcome. Advertising for awareness creation Professionals
used to think that.
If I'm good in my specialty, clients will find me wherever I am.
Maybe that was true in the 1980s but not anymore in this fiercely
competitive environment. No individual professional has a constant flow
of new customers who are willing to pay the right price. One way to
bring in new profitable business, is to advertise. Look for
opportunities to publicise yourself by giving speeches, writing for
professional journals or lending your expertise to local journalists who
cover your field. Being quoted in a newspaper or featured on TV can
really help your business grow.
Delivering customer satisfaction
Delivering customer satisfaction. Sadly most professionals in Sri
Lanka think everyone understands that I'm busy and expected to have to
wait for me.
It is annoying to be kept waiting which drives clients away in a
market where there is a choice. The No. 1 complaint among Sri Lankan
patients is that doctors are not on time and that they suffer from poor
on-time performance. Unexpected developments are no excuse for poor time
management if foreign doctors can, why can't the local doctors do the
same.
Whenever a delay is unavoidable, have your assistants communicate
with clients who are scheduled to see you later at work and at home to
tell them you're running behind schedule. Even if they miss the call and
wind up waiting anyway, they will appreciate your effort.
Business expansion
Business expansion Business is booming, so I need to add another
professional to the practice. Before you add a colleague, make sure the
extra work that comes your way fits into your long-range business plan.
If you do want such extra business, consider whether you should hire an
assistant rather than bring in a full-fledged professional. To help make
that decision, write down the tasks you want to delegate and analyse
whether a fully trained professional is the only person for the job. If
so, find one who is not just competent but also compatible with your
personality and the culture of your firm. If a practice brings in wrong
or unprofitable business and wrong people, it can head off in the wrong
direction. More importantly; People strategy Show your staff that their
work is critical then they will want to help you in every way they can.
More likely the reverse is true: your staff feels overworked,
underpaid and undervalued. Professional practices are particularly
susceptible to this problem because, unlike in other small businesses,
most entry-level employees are cut off by their lack of training from
achieving the highest level of pay. Make a serious effort to talk to
your staff and identify problems that you can work together. This will
improve their loyalty to you, morale and efficiency. In terms of
compensation and rewards, We're all hard workers here.
The fair thing is for each of us to take home what we bring in. But
they soon realise that the take-what-you-make system failed to generate
team spirit. ''It creates a feeling of 'your client, my client,' rather
than 'the firm's client.
Remember, professional competence will always be the foundation of
your reputation. But it's the way you run your business that will
determine, in the end, your financial success. ''Your customers already
think you're competent or they wouldn't call for an appointment in the
first place, "It's the little things you do that keep them coming back."
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