Top Tips for Company Directors
Maintaining and gaining a competitive market advantage is essential for Company Directors in the UK. Advising company directors is similar to giving a birds-eye-view of what makes a good company great. Top tips for company directors looking at ways to increase or defend existing profit margins include the following essential considerations:
1. Financial Backing - a good financial institution backing a company director, and the team in charge, is essential to managing any business. A strong backer will give the company all sorts of advantages, including the ability to negotiate far better terms with suppliers. When debts against the company are viewed as secure, growth is a real possibility. Therefore, setting prices, in anticipation of bigger orders in the future, and extended terms of credit, can be negotiated on far more favourable terms.
2. A Convincing Skillset - Individual company directors need to display track records of success in a specified sector. One aspect of this is informal. Company Directors prove themselves apt business leaders when they drop anecdotes about their past experiences in industry. Businesses headhunt company directors who'll put in place a management team committed to the firm, and want to hear about when this happened in the past. Having a pedigree in the industry and a convincing strategy, equals clout, when influencing the selection of the senior management team a company director will be heading.
3. Know the Legal Side of your Product or Service - company directors focus on the engine of profit, which is whatever the company is selling. For example, in a company that relies on income from an invention, or patented product, operating globally is soured if someone breaks the patent or gets near to it. Lawsuits can be costly in terms of time and money, and if the company has a large and established market, the company director must be ready to defend company property at a moment's notice.
4. Recognise Entrepreneurs - a company director needs to identify entrepreneurial skill sets. The best example of this in action is when a company director is in charge of an operational franchise. The biggest headache in the franchise industry is where people have the cash and interest to run an established brand on behalf of the company, but do not have the skills or even the motivation necessary to make it work. In some respects all large companies run aspects of franchise, if we compare it to employees in departments, or subdivisions. Unmotivated employees who are out of sight, buried in a department somewhere, can cost a company time and money, not to mention lack of innovation. The business format franchise started in the UK with pubs, and then car dealerships, followed by fast-food chains. Successful company directors overseeing the continuing expansion of a franchise brand have firm application processes in place. The employee application process in all businesses can benefit from including an entrepreneurial element.
5. Keep up-to-date with Start Ups - company directors at all levels are wise to keep abreast of developments in their industry. This includes watching other business start-ups, and ways that new entrepreneurs are succeeding in compatible industries. Key company stakeholder business start-ups may, for example, offer a better deal for the company supply chain management team. A rival start-up could have a technological advantage an established company would find extremely useful.
Interestingly, many of the world's richest people followed the start-up route. eBay's owners became billionaires before ten years had lapsed. The Google entrepreneurs achieved billionaire status in five years. Bill Gates, is the richest man in the world.
We've all heard others remonstrate they wish they'd bought shares in Microsoft, however it's not just hedge fund company directors who need to watch business trends. Not watching industry trends can cost dearly. A top company director will spot potential threats/benefits to trading profitability by watching developing markets.
6. Networking - a company director needs to circulate. They need to attend business awards ceremonies, speak to the media, be available to the marketing department, and determine to be the company spokesperson. Most company directors find this motivation through owning a portion, or all, of the company they represent. Others believe strongly in the organisational purpose of the company they work for. A third group thrive on pragmatism and efficiency, gaining enormous satisfaction from turning a business into a streamlined profit-making venture. Through great networking, a company director is the inspirational force behind the business, and the people within.
Most importantly, individual company directors need to ensure the business they undertake matches their personal motivational style. Whether inspiring through creative leadership, or drilling down the details, the six tips above will assist any company director to stay ahead of the competition and stay in profit.