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Is it better to take giant leaps or baby steps in your biz?

 
Posted by Lisa EliaApprentice Thursday, December 15 2011 1 comments

Hi Everyone,

As business owners, we must make decisions daily about how much of ourselves and our resources we want to invest. Essentially, we must decide if we want to take a giant leap or baby steps in any specific direction. For this reason, I created the STAR Method, a simple process you can use to decide when it's best to take a giant leap and when it's best to take baby steps. You can read more at http://j.mp/STARmethod.

Best regards,

Lisa

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    LarchOyeApprentice said on December 17, 2011

    The days of taking baby steps are long gone... Businesses need to make major leaps and bounds in maximizing the value of every resource that goes into making their product or providing their service. Services and products ALSO need to drastically improve their efficiency and longevity. ex: Buying $400 computers every 2 years, Buying $800 or $1200 computers every 5 years, with a planned upgrade of ram somewhere in the middle when it's cheap to double the ram in each system (and you can still sell the old ram for a reasonable return) and possibly also the hard drives...

    The productivity increases from having workstations with 8gb ram and ~64gb 6bit sata ssd's are very significant too: the less time anyone has to wait for their computer to load/process things, the more time they can spend actively working- meaning that TIME is also budgeted efficiently.

    Apply this very same principal to transportation / logistics, energy / physical resource dependency, etc... By speeding things up and using fewer resources to accomplish the same quality of product/service that you're already providing- the more time and resources you'll have available for innovation, etc.

    And Innovation is absolutely every bit as important as Efficiency today- and will be for the foreseeable future... The auto industry is a PERFECT example of how/why 'baby-steps' are terrible for business. All the car makers had to do to significantly increase gas mileage is add 2 more gears! Fuel consumption is directly related to engine RPM, so if your car is at ~2400rpm going 70mph instead of ~4000rpm, you're using less fuel (without even changing the engine). Had the auto-makers started doing this back in the 90's, everyone would have more money to buy new cars (since they're spending less on gas). NOT making any real meaningful increases in the fuel efficiency of the vehicles they were selling (probably at least in part due to the symbiotic relationship between oil and cars)- they were helping line the pockets of the oil companies, while not really receiving anything in return... Then gas doubled in price rather suddenly, and nobody even thought about buying a new car that got the same gas mileage- they could barely afford to put gas in the car they had!

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