September 2, 2026 l Business Mirror
Every business has a tipping point which is the threshold when something happens causing an unstoppable change leading to a large permanent shift. This shift can be good or bad depending on your perspective, but let us focus on how to achieve a tipping point to make a business succeed. The primary dynamic factors that determines the business outcome is the strategy, people, cost and revenues.
Having the right business strategy is a good way to start. Going into a fundamentally or structurally wrong business is not going to make you increase your chances of success, no matter how good your strategy, people, infrastructure and capital are. Having to sell a product that is not suited for a particular market, even when that same product is popular and in demand in other markets is an uphill struggle. Selling winter apparel in tropical countries, alcohol in Muslim countries, smart phones in locations without cell sites or Wi-Fi and so on, will never make sense.
Hiring the right people with the proper attitude, qualifications, competence and capability improves the chance for business success exponentially. Getting the wrong people who cannot do the job right will definitely result in failure and cost the enterprise both time and money in the process. When a situation is identified that an employee is incompetent or has been wrongly hired, promoted or overpaid, that situation has to be corrected through adjustments in job responsibility, training or service termination. It should not stop there, a thorough review of the one who made those decisions should also be done and the corresponding action taken to avoid making the same mistake again.
Reducing your costs at the right places enhances the viability and competitiveness of any company. This would include making use of technology to improve efficiency and customer satisfaction. Process improvements that not only streamline, improve speed and reduce costs but is equally important in reducing delivery times and improving quality. Training and proper hiring of the right employees will also go a long way in increasing efficiency and will definitely improve your cost and service level. You should also consider substitution of materials, more efficient equipment, cutting down on fuel and other power costs, as well as better locations.
Improving revenues includes having better margins. Start by evaluating and understanding your products or services and their corresponding markets. Are we providing the correct product and service to the markets we are serving? Are we running after the right market? Are we reaching our best target customers? Do we have the right people and infrastructure for the market we are running after?
Sometimes, more study is need to come up with the right product and service needed by the market. Having a pilot test, getting customer feedback and doing product or service testing and enhancement would be a good way to get an idea of how the markets will react.
Small adjustments can sometimes result in big changes, you just need to think things through. The lottery type approach to try to achieve a positive tipping point is precisely that, closing your eyes and hoping you will hit the bullseye. Your company and stakeholders deserve better than that.
***The views expressed herein are his own and do not necessarily reflect the opinion of his office as well as FINEX. For comments, email georgechuaph@yahoo.com. Photo is from Pinterest.