Effective Delegation

No doubt, effective delegation is a hallmark of leadership.

Delegation is defined as follow.
- To give a task to somebody else with responsibility to act on your behalf
- To give somebody else the power to act, make decisions or allocate resources on your behalf.

The keyword here is "on your behalf". That means I am accountable.

Here are the steps for effective delegation:
1. Identify the task to delegate.
2. Document the Action Plan: the correct way to perform this task, step by step, including the quality control standards for each step.
3. Clearly specify the expected results of the delegated task. Give information on what, why, when, who, where and how.
4. Have someone follow your Action Plan. Maintain open lines of communication. Don't micro-manage, but make sure that you are kept in the loop on progress and performance.

Budgeting for Fluctuating Revenue

I am convinced, but it is so difficult to get partners to believe that we need one.

Key learning points:

1. A budget is a combination of past trends and future predictions with emphasis on profits.
2. Strange some how, but it is easy to start with expenses.
- Determine variable cost
- Determine fixed expenses
- Project break even points
3. Forecast is a projection modified to what we think will be different.
- create for both conservative and optimistic scenario
4. Review budget plan along with P&L, balance sheets and cashflow statement on regular basis

Cost Control and Good Leadership

Here's what I learned from E-myth about the importance of Good Leadership in Cost Control.

1. Set a good example
2. Keep yourself accountable
3. Manage your time
4. Never abdicate control of your finances
5. Build a culture that values cost control
6. Refine your negotiating skills
7. Perfect your recruiting and hiring process

So much about Cost Cutting

These are some key points I gathered from reading E-Myth blog.

Why cost cutting? From strategic point of view:
1. Demand in the market has dropped off, causing an unacceptable decline in profitability
2. The business is losing money and needs to return to profitability
3. The business is profitable, but management has profit objectives that require a better return at current revenue levels

What are the risks involved:
- Will you reduce your ability to compete effectively?
- Will you reduce the quality of your product?
- Will you reduce your clients' experience with your company?
- Will you reduce the goodwill you have worked so hard to build?

2 important ideas of a well thought through strategy:
1. A strategy requires you to take a step back, put things in perspective, and look at the big picture.
2. A strategy demands that you express clearly the result you intend to achieve. Cost cutting is a means and not the results, increasing profit is.

quotable quotes

Pain is inevitable; Suffering is optional.

Don't please everyone. Make sure the right people like you, and it will be expected that others will not.

How you think about your business is how you end up doing business. so look for opportunities rather than dwell on your frustrations

Your business is a reflection of how you show up as a leader.