The other day, a successful retailer said something that struck me:  – We have to make money on everything – he stated matter-of-factly.  It was about using a supplier to finance the costs of marketing and discounting for a sale, but the phrase sounded like a core principle of his company… a benchmark to evaluate every single opportunity… a business philosophy to live by… a discipline.

His company is one of the best in its sector, but attracts little attention. The CEO’s office is clean, but simple, with a plastic promo clock facing the visitor who is sitting at a post-retro, just-above-IKEA quality boardroom table, across a matching cabinet.  The CEO is talking about his no-turnover management team, who routinely work 5 to 9 (rather than 9 to 5), and at weekends, if needed. Given his no-nonsense attitude, the disciplined, diligent and do-it-all-today approach, I might be fooled to be looking at a Chinese company run by locals. No magic, no frills, just more economical, more effective and more efficient in the small details of running and executing its daily business, than its competitors.  Not innovative, but intelligent, doing the basics right… over and over.

“Make money on everything” sounds simplistic, even greedy, but it is the opposite. It is a highly economical approach that calls for efficiency and providing value to customers. It is simple enough for management and staff to live by, to execute day in, day out. The road to profit is not BIG IDEAS, but many little improvements, made happen.  Little hinges swing big doors.

It is so easy to fall into the trap of taking on projects for market share… for keeping idle staff busy… or to grow the top line, hoping economies would eventually take care of the bottom line. Trouble is, such projects often boost costs, complexity and risk too.  “Making money on everything” keeps your feet on the ground.