Friday, March 20, 2009

Your Home Business: Turning Pennies into Dollars

Henry Ford taught us that to simplify the manufacture ofautomobiles, that the best way to do so was to install theassembly line. That one change revolutionized the automanufacturing industry permitting the industry to build cars ata cost whereas the average person could afford to buy one.

The lesson we should take from this is that having the abilityto improve the process of getting the job quicker and cheaper,without compromising the quality of the job being done, willhelp catapult the person who simplified the process to the topof his/her field.

Pennies saved in your home business can turn into dollars at theend of the day, and dollars can quickly multiply into hundredsor thousands of dollars over time.

Doubt me if you will, but let me ask you a question. Do youthink a saving of two fifths of a penny could make any realdifference in the profit margin of a home business? Of coursethe right answer is "it depends on how many transactions aredone in a year, utilizing the savings of the two fifths of onepenny."

You only have to think back a couple of decades to reallyappreciate this question. Do you remember the nut that lived anddied in a Las Vegas hotel room? You know the one who was abillionaire, and was so worried about germs that he died ofstarvation? If you guessed Howard Hughes (1905-76), pat yourselfon the back.

Now Howard did not make all of his money on his two fifths ofone penny. He did however make a ton of money from his twofifths of one penny. It seems Howard owned a can manufacturingcompany. And one day, Howard`s team figured out how they couldmake one minor change in the design of their food can to reducethe amount of tin necessary to make a single can.

As the story goes --- if my memory serves me correctly --- thereduction in tin usage equaled a saving of two fifths of onepenny per can. Howard --- being the really smart businessmanthat he was --- decided that he would not be so greedy as tokeep all of the savings for himself. What Mr. Hughes did do wasto keep half of the savings for himself, and give the other halfto his customers. The incredible thing about Mr. Hughes decisionis that by saving his customers an extra one fifths of one centper can, he managed to take more market share away from hiscompetition --- netting his company an additional andsubstantial portion of the total market share in the canningindustry.

Let us return our thoughts to your home business. Have you evergotten the feeling of excitement --- when you read something orthought of something --- that you could not wait to implementthis new idea? This could be one of those moments...

In every home business, there are certain processes that we doover and again. Sometimes it may be possible to trim the time orexpense of a process which in turn will add pennies or dollarsto your bottom line. If it is a process that you do hundreds orthousands of times per month, then your savings will multiplyinto hundreds or thousands of dollars in monthly savings.

Imagine what running a home business was like BEFORE thecomputer...

Before the personal computer, we had to hand type all lettersand invoices. Now, we can setup a letter or invoice that we sendout quite often, and we can save it in our word processor sothat when we need to use it again, we can print it quickly andefficiently. There is no longer a need to type the documentagain from scratch.

The computer has simplified our business communications and hasprovided us the opportunity to reduce our costs of doingbusiness.

Think about all of the other processes that the computer hasenabled us to do for far less expense than what we could in thepast.

In this case, the computer is a tool that permits us to savetime and money.

So, my challenge to you is to begin examining the processes inyour own home business and look for ways in which you can saveyourself time and money. It is far better for you to contemplateon this matter than it is for me to do so for you. Simply put,you know your business better than anyone on the planet does.Therefore, you are in a better position than anyone to findthose extra dollars that will decrease your costs and increaseyour profits.

The extra pennies and dollars you could extract from yourbusiness could spell the difference between success and failurefor your home business enterprise.

About the Author:------------------------------------------------------------
Stone Evans, The Home Biz Guy has helped thousands of peoplein over 200 countries around the world start and run asuccessful home business. Discover 3 easy steps to startyour own home business and subscribe to The Home Biz Guy'sFree Home Business Secrets Mini-Course at:

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