Wednesday, May 20, 2009

 

How to Select Among Promising Cost-Reduction Tests

Let's assume that all of your test proposals have been checked out to see if they can be improved. Most or all tests proposals were improved by that process and some may have remained unchanged.

Some companies are lucky and it is fast, cheap, and easy to conduct tests of new business models that reduce costs. If you are in that happy circumstance, you can simply encourage people to run tests without doing any further screening. You should skip to the key questions section at the end of the chapter.

If you are a small or resource-constrained organization or tests are expensive, you probably still have more potential tests than you can possibly do. As a result, most companies will have testing choices to make. If that is your circumstance, the rest of this section will tell you what to do.

How do you select the right one or ones to pursue?

Those who study the evolution of plants and animals usually employ a concept involving how well a genetic make-up matches its environment. Those animals and plants whose strengths and weaknesses are superior to the alternatives living in that environment will flourish. You can evaluate your potential tests in a similar way, in advance of actually testing them.

Use a series of ranking screens to determine which tests to do first. This ranking process is very important because you will probably not be able to do more than a few tests due to the costs and potential complications involved.

As a result, you run a risk none of the initial tests will yield the sort of cost-based business model improvements that you need. These screens will reduce the likelihood of that delay occurring.

First, rank your cost-reduction test proposals by their potential to improve sales, before considering any changes in price. That may seem like an unusual place to start for cost-reduction ideas, but it is a very powerful point of view. The most effective cost reductions are usually those that create advantages for customers and help your organization fit in better with those customers.

As those who have employed the six sigma objective for quality improvement have found out, in many cases lowering your costs by reducing errors, for example, also means providing better business results for customers. Those cost reductions are the ones that should draw your attention first.

Second, reverse rank your test proposals by their potential to harm sales if you poorly execute the new business model. For example, if a new business model test could not possibly cost you any customers, that test would rank higher than any other tests that could cost you customers.

How could a test avoid having any potential to lose customers? Most tests would have this character where you could promise in advance to immediately switch the customer back to the old business model if your performance was not satisfactory with the new business model.

Third, create an average ranking for the first two areas of effects on sales. Eliminate all of the tests that are in the bottom half of this average ranking. If you started with 100 test proposals, this drops you down to 50.

Fourth, rank the surviving test proposals by the absolute size of the total potential cost savings.

Fifth, take those same test proposals that survived step three and rank them from the smallness of the risk that you will not succeed with the test. In doing this ranking, take those with the lowest risk and put them at the top of the list. The highest risk test belongs at the bottom.

Sixth, create another average ranking using the fourth and fifth rankings. Eliminate all those proposals that fall in the bottom third of this average ranking list. If you ranked 50 proposals, you would eliminate 17.

Seventh, take the test proposals that survive the sixth ranking and rank them now by the enthusiasm felt that those who will be affected by the implementation of the change in your organization. Eliminate all the test proposals in the bottom two-thirds of this list. If 33 proposals remained, this would drop you to 11 proposals.

Eighth, take the remaining test proposals and rank them by the fit they have with the tests you have run or are running to improve value or pricing structure. Eliminate any tests that would harm your ability to implement such value or pricing structure improvements. If 11 proposals remain, this might mean dropping another four.

By now, you should have a manageable list of testing projects to pursue. If you still have more than you can afford, you can simply do them in priority order. That approach will work well unless you find that one or two tests cost more than several of the others. In this case, consider if you could learn a lot more or gain more potential benefit by doing all of the inexpensive tests first.

If the screening has dropped you down to no tests, go back to the last screen that left you at least six tests and apply the seventh and eighth rankings.

If fewer than three tests survive at this point, your thinking about potentially better business models for reducing costs was too limited. You should restart that thinking while you take on whatever tests have survived this screening.

About the Author

Donald Mitchell is an author of seven books including Adventures of an Optimist, The 2,000 Percent Squared Solution, The 2,000 Percent Solution, The 2,000 Percent Solution Workbook, The Irresistible Growth Enterprise, and The Ultimate Competitive Advantage. Read about creating breakthroughs through and receive tips by e-mail through registering for free at

http://www.fastforward400.com .

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Thursday, October 30, 2008

 

Make Money Selling Products That You Didnt Even Create

There are many individuals who are misinformed when it comes to making money online. Unfortunately, a large number of individuals believe that you taste to be trained in a precise sphere or go through particular talents. The realism is that achievements and exercises may add to your accidents of discovering a legitimate change stimulating chance; excluding, they are not desire. All you crave to do is find an opening that entails juvenile or no work and then you might be on your way to stimulating money.

An likelihood that involves adolescent or now work; if you are surprised how this is that you can think of you are not lonely. Some masses are taught to watch out of these affair occurrences as Some of one another are scams. As you will search out scams online, there bona fide problem circumstances out there that would not involve you to put in lengthy work hours. One of those affair circumstances necessitate merchandising a class that isnt even yours. You can do this by buying the personal label resell rights for a defined type. These wareses are Some commonly e-books, software programs, and satisfied articles.

The originally step in seizing part in this wonderful problem chance is to obtain a personal label type that these days has its resell rights handy for procurement. This can easily be pulled off a quantity of numerous ways. Conceivably, the most well-to-do way is to operates a standard world wide web hunt. If you are involved in procuring the resell rights to an e-work, you will inquired to perform a usual information superhighway hunt, using the libretto deepest label e-book resell rights. If you are hunting to pay money for content articles, software programs, or something besides, you will appetite to change the affirmations e-book plus whatsoever you are seeking for. By acting this world wide web search, you should be armed in addition to links to websites giving resell rights for sale.

An alternative to operating your own research is to hunt memorials savours those that you understand. If you appreciate of any person who has participated in this currency inducing opportunity, you may asked to ask them for recommendation. Once make testimonials are apposite, it is additionally informed that you exactly assess each make bestow in advance inducing a decisive poll. If you do not identify any individual who has participated in this brand of opportunity, you can just commune to those that you do not realize. What on earth is wonderful almost about the world wide web is that it allows you to connect plus a wide class of numerous workers. These recruits may be able to grant recommendation or in suggestion when it comes to procuring the resell rights to a accurate personal label class.

While you understanding fell upon an human being who is offering their variety for sale, via deepest label resell rights, you will hunger to agree their brand. You will want to make agreed that it is not effortlessly a element variety, but one that you will be able to advertise. This is basic given that you will be acquiring the right to resell the style. Given that you will be investing your own change into this interest opportunity, you will crave to type definite that you are prosperous. If you are totally sure that you experience found out a aspect style that you can promote and vend to the broad municipal, you can go prior to and hit a pact along furthermore the style originator.

Though procuring the resell rights to a variety, such as an e-textbook, software plan, or array of happy articles, will not imply a gigantic measure of book on your allotment, it is necessary to remember that you will understanding to do a couple book. To effectively persuade you to buy the style which you came across the rights to, you will desire to market your class to the wide-ranging civic. Of way, excepting another way stated in your resell rights conformity, you should be publicize the style in anyway that you see fit. In varied lyrics, this means that you should as well be able to brand change no issue how much or how little you requested to book.


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Uchenna Ani-Okoye is an world wide web advertisement advisor and co founder of

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