The phone business turnaround

How Caudwell reversed a £2,000-a-month loss within three months.

John Caudwell's framework, from Love, Pain & Money, pp. 106 to 116.

Find the cause
Work out why the business is losing money and how to move to break even, because profit is always the goal.
Make performance visible
Put a bar chart of each person's monthly phone sales on the wall, including his own name.
Add a bonus
Pay a cash reward to the top seller, awarded to the next best when he himself topped the board.
Lead by example
Stay late, sell, coach tough and recruit only winners.
Set the price point
Push airtime commission up and cost price down to reach £999, £200 under any competitor.
Graph the margins
Plot supplier prices, volumes and commissions to find where more margin exists.

From chapter: Chapter 13_GIANT, pp. 106–116

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