Entrepreneurship Vital MBA-level tips for business leaders by Chris Croft

Small price increases can significantly boost profit margins with minimal impact on customer base.

Testing different prices on customer groups to find the optimal price that maximizes profit.

The most profitable price point is where about half of potential customers decline due to price.

Profit is more important than growth and size.

Starting a business with the goal of making a profit from the first day is essential.

Using subcontractors instead of employees for flexibility and cost-effectiveness.

Keeping promises related to pay, bonuses, and overtime is essential.

A flexible alternative to employing people, allowing for growth and scaling down as needed.

Finding the price point where half of potential customers are willing to pay, maximizing profit from the remaining customers.

Breaking down a company into smaller units, where teams handle all aspects of a product or service, from sales to production.

A method of using external contractors instead of hiring employees, offering flexibility and cost savings.

Preventing a single employee from having exclusive control of critical information or skills to avoid potential exploitation or disruption.

Dedicated time for leaders to think strategically, generate ideas, and analyze the business environment.

Groups of business leaders from different industries who meet to discuss challenges, progress, and share ideas.

Prioritizing profitability over growth to ensure long-term sustainability and financial stability.

A strategy for achieving profitability and stability, even at the cost of slower growth.

Using experimental pricing methods to test different price points and analyze their impact on profit.

A method of ensuring that critical information and skills are shared and accessible to all, reducing dependence on individuals.

Dividing a company into self-sufficient units, each responsible for their own profit and loss. This structure reduces communication issues and increases individual ownership.

The act of creating unnecessary complexity and dependence on oneself by overcomplicating processes.

Training employees is crucial for their growth and the company's success, similar to maintaining a Ferrari by adding oil.

The most important skill of a manager; it frees up time for strategic tasks and empowers employees.

Having someone take ownership of specific roles and responsibilities within the organization. This ensures accountability and reduces dependence on single individuals.

Understanding the market, identifying target audiences, and strategizing marketing efforts.

Using various communication channels effectively to deliver marketing messages to your target audience.

Gathering feedback from current customers, former customers, and potential customers to understand perceptions and areas for improvement.

Collaborating with competitor businesses, even those in complementary fields. Discuss pricing, supply chains, and share overflow work.

Using clear, concise messaging and presentation, making it easy for customers to understand your product or service.

Focusing on long-term brand building and steadily communicating your message to your audience.

Pricing strategies should prioritize maximizing profit rather than simply matching competitors or cost-based calculations.

Leveraging referrals and word-of-mouth for customer acquisition through exceptional service and proactive engagement.

Achieving steady growth through consistent increments of 5%, which has a compounding effect over time.

Focusing on the slowest process step to improve overall efficiency, as a bottleneck impacts the entire system.

Maintaining high business quality builds long-term prosperity by fulfilling promises to customers.