HOUSE_OVERSIGHT_014003.jpg

9. Do not expect work to fill a void that non-work relationships and activities should. Work is not all of life. Your co-workers shouldn’t be your only friends. Schedule life and defend it just as you would an important business meeting. Never tell yourself “ll just get it done this weekend.” Review Parkinson’s Law and force yourself to cram within tight hours so your per-hour productivity doesn’t fall through the floor. Focus, get the critical few done, and get out. E-mailing all weekend is no way to spend the little time you have on this planet. It’s hip to focus on getting things done, but it’s only possible once we remove the constant static and distraction. If you have trouble deciding what to do, just focus on not doing. Different means, same end. —AUGUST 16,2007 The Margin Manifesto: 11 Tenets for Reaching (or Doubling) Profitability in 3 Months P sosiavitiey often requires better rules and speed, not more time. The financial goal of a start-up should be simple: profit in the least time with the least effort. Not more customers, not more revenue, not more offices or more employees. More profit. Based on my interviews with high-performing (using profit-per-employee metrics) CEOs in more than a dozen countries, here are the 11 basic tenets of the “Margin Manifesto” ... a return-to-basics call that gives permission to do the uncommon to achieve the uncommon: consistent profitability, or doubling of it, in three months or less. I review the following principles whenever facing operational overwhelmingness or declining/stagnating profits. Hope you find them useful. 1. Niche Is the New Big—The Lavish Dwarf Entertainment Rule Several years ago, an investment banker was jailed for trade violations. He was caught partly due to his lavish parties on yachts, often featuring hired dwarves. The owner of the dwarf rental company, Danny Black, was quoted in the Wall Street Journal as saying “Some people are just into lavish dwarf entertainment.” Niche is the new big. But here’s the secret: It’s possible to niche market and mass sell. iPod commercials don’t feature dancing 50-year-olds, they feature hip and fit 20- and 30-somethings, but everyone and his grandmother wants to feel youthful and hip, so they strap on Nanos and call themselves Apple converts. Who you portray in your marketing isn’t necessarily the only demographic who buys your product—it’s often the demographic that most people want to identify with or belong to. The target isn’t the market. No one aspires to be the bland average, so don’t water down messaging to appeal to everyone—it will end up appealing to no one. 2. Revisit Drucker — What Gets Measured Gets Managed Measure compulsively, for as Peter Drucker stated, What gets measured gets managed. Useful metrics to track, besides the usual operational stats, include CPO (“Cost-Per-Order,” which includes advertising, fulfillment and expected returns, charge-backs, and bad debt), ad allowable (the maximum you can spend on an advertisement and expect to break even), MER (media efficiency ratio), and projected lifetime value (LV) given return rates and reorder percent. Consider applying direct response advertising metrics to your business. HOUSE_OVERSIGHT_014003