Two Approaches to Running a Business: Why Lean Practices Win Every Time

Whenever anyone opens up a business and offers a service or a product to customers there are two approaches that can be taken. Either the owner of the business can charge whatever they want for their products and services and work hard to convince customers that their stuff is worth it, or they can simply pinpoint what customers are willing to pay for products and services and figure out a way to offer them at or below that price threshold effectively. In my experience the second approach works better than the first every single time, but that doesn’t stop businesses from trying to first on a regular basis.

Convincing Customers is More Work than Necessary

When you are spending most of your time trying to convince customers that your product is worth what you are charging you are wasting time and resources that could be spent developing additional products and services, or perfecting what you’re already offering. Instead of wasting time and effort on such an unproductive activity it makes more sense to work with a lean Australia specialist and build a streamlined and affordable company from the beginning.

Cut Costs and Offer Value while Generating Profits

The trick to keeping your customers really happy is to figure out how to cut your own costs and improve your products without raising your prices. The idea of lean management was developed in Japan, by an automaker to improve factor efficiency rates in a market that doesn’t offer much wiggle room as far as pricing is concerned. The practices were so effective that they are now adopted in business places around the world.

When a business thinks lean, they are simply thinking about all the optimizations that could be made around a company and then figuring out how to make them happen systematically over time. If you adopt lean practices you’ll notice your business improving gradually and you’ll also realize that there is never a threshold or a point where you can’t improve any further. There is always something that a business can do to improve their situation and to cut their costs. By continually working to enhance our company and make it more effective for less money you’ll stay at the forefront of your industry, whether it’s in healthcare, real estate, construction or anything else, and you’ll have no trouble staying in business and earning a respectable profit margin along the way.

Start Your Transformation

If you’re running a business that you would like to make more profitable and streamlined getting started with lean is quick and easy. The Leading Edge Group offers a set of lean training options for lower-level workers or for the higher up management types at your company. Most CEOs decide to educate some of their executives first and then move on to educate the rest of the company after gaining faith in lean concept and the value of the training. Training employees will take time and money to accomplish. It won’t be easy and you’ll invest a significant amount of money in the endeavour, but in the end it will make sense financially and enable the business to continue to grow. If you aren’t sure about lean practices yet, and it’s hard to imagine all of these proposed benefits, spend time and take a class all on your own. The investment to just train yourself is minimal and will provide a whole new outlook on running a business. From there as your confidence builds, it will be easy to justify spending the money to train additional staff members and as your investment grows, so will the success of the business. Lean practices will benefit most companies and a lean business in Australia has a greater chance of succeeding than a top-heavy company trying to justify bloated prices because of inefficient practices.