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Close your "open loops" for greater profitability
by Michael Huggins, RGDGrowing your design business requires a unique mindset.
Business ‘growers’ are involved in projects and activities
that will create future opportunity. New business development
requires future-based thinking, decisive decision making and
taking action. But often this mindset creates more complexity
in the process.
In my business I call them ‘open loops’. These are unfinished tasks
and responsibilities that are created out of other activities. And
they often prevent you from bringing closure to a larger project or
task. Unless you make a conscious effort to close them, they can
choke, paralyze or stunt the growth of your business.
Open loops can be a number of things; leads that you haven’t
followed up. Unfinished projects that need your direction and
attention. Or it can be as simple as an email update to your
clients. Whatever the activity – it has created an ‘open-loop’ and
prevents you from finishing a complete task. And though one or two
of these little items is no big deal, the weight of a few
unresolved items can greatly affect your profitability.
So what do you do? Close the loop. Creating complexity is a part of running your business. But neglecting bringing closure to a task
can turn into one huge problem. So to prevent the feeling of being
overwhelmed and future discouragement, schedule some ‘loop-closing’
every 2- 3 weeks or so. That way you can keep things manageable
(and profitable).
Here are a few areas you can focus on…
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Unfinished projects
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Take time to review projects that have gone dormant or have very
little client activity. Perhaps the project is held up at client
approval. Or maybe it’s waiting for copywriting or photography.
Determine exactly what the next step is. If you can provide the
next step, then put a priority on getting it done. If your client
is holding things up, contact them for a status of the project.
Inform them you will be invoicing the project in it’s incomplete
state if nothing will happen in the next few days or so. This often
jump starts the project. If it doesn’t, just close the loop by
closing the job. You can always open it again when the client is
ready.
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Administration
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Do you have a pile in your ‘IN’ tray that is being neglected? Now
is the time to clean it up. The number of incomplete tasks on your
‘to-do’ list will be in direct proportion to your energy level.
Unfinished tasks have a way of burdening your daily work routine.
And the best way to lighten the load is to work through each item
making ruthless decisions about each item. Decide what the next
step is for each item. Ask yourself if it’s still important. If it
isn’t – chuck it. If it is – act on it now.
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Call-backs
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Look over your client and prospect list and see who you haven’t
contacted in a while. Give a quick call to say ‘Hi’ and see how
they’re doing. Don’t procrastinate these types of phone calls.
Verbal contact is extremely important when developing your
business. Email is good – but it can’t replace a real connection
(even if you end up leaving a voice mail). They make your
relationships more tangible and significant.
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Verbal commitments
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Your word is your bond. And it’s what people measure you by. Have
you promised something to a client or supplier? Did you flippantly
agree to “get back” to someone but haven’t? Treat your little
commitments the same as big ones. Not following through on the
small things can ruin your business (not to mention your
integrity). Close the loops by making good on all the little things
you’ve promised (even if you are ridiculously late). You’ll be
amazed at the impact it will have on you and your clients.
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Marketing support
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Although you should have a regularly scheduled marketing program
there will be some areas that will require some special attention
from time to time. Have you finished a recent project where you
should ask for a referral? Is there a project you could leverage by
sending samples to other clients and prospects? Maybe you have an
unfinished marketing idea or project that you intended to start.
Whatever they are get it cleaned up to keep your marketing strong
and potent.
“Loop-closing” can be a powerful tool in your business – but
only if you take action and finish those unfinished items. The
alternative is to let them mount until one day they will catch you
by surprise and overburden and hinder you. So schedule some time to
close your loops. Not only will you reduce your stress but you’ll
be more profitable.
Michael Huggins
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