Wednesday, May 19, 2010

How to Kill a Business

1) Think that your competition can't match your offer.
2) Ignore the complaints your customers have or think they're being unreasonable.
3) Assume your competition can't provide the same service.
4) Think that your customers will stay with you because you're a nice guy.
5) Don't worry about employee turnover. There's lots of people out there and training is cheap.
6) Measure the usual operational and financial items. Don't think about any of the input or process elements that drive costs or value.
7) Apply the wrong business model for your competitive realm. Focus on costs, when innovation or intense customer knowledge is needed. Focus on innovation, when lean/six sigma efficiencies will drive costs down for the commodity markets.
8) When customers invite you to move into a new market (product or service offering),tell them you're not interested. Suggest they find another source.
9) Focus on optimizing the rewards for the leaders and not for the rest of the organization.
10) Invest millions into a new product or service that you think is great without doing any market research or current competition.

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