Focusing Purchases on Growing Your Business

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November 29, 2012 – ISSN# 1545-2646


Focusing Purchases on Growing Your Business

In every business there are financial transactions.  Revenues coming in and expenses going out.  The objective of the business is to separate and create a large gap between those two items thus creating profit.

It is the process of looking at the expense side of the sheet and more specifically the relationship you have with your vendors.  Many organizations create various relationships with vendors for goods and services and on some cycle of time review the value they received for the dollars expended.  In recent years this has occupied much of the focus as organizations used every method to reduce costs.

Moving forward a business cannot grow simply by continually reducing and keeping expenses tight.  To grow a business must make strategic investments into opportunities which will return a greater reward than the initial investment.  To accomplish this, the business must direct their attention to those purchases which contribute to the growth strategies and not necessarily only the daily operational strategies.

For example, all businesses require some type of telephone connection to the outside world.  This is the channel by which their customer contacts them and the organization contacts the customer. Today telephone systems are more like computers than a telephone.  In fact the plastic that sits on the desk is almost the least important part of the telephone system.  Additionally the marketplace is moving toward BYOD or Bring your own Device orientation.  This can remove the need for plastic hand sets and move everything to mobile devices.

If you were to look at upgrading your telephone system and are not looking at the applications underlying the handsets to run your business more effectively then your purchase is not focused on growing your business but simply replacing old plastic with new plastic.

With many tools and applications virtualizing themselves and being cloud based, not only can your accounting system be located in cyberspace but so can your customer management system and telecommunication system.

This week as you look at your growth and investment strategies for your business in 2013 and future years, don’t stop at just looking at what will get your business thru the next short cycle but what can accelerate your business to take care of your clients more effectively and thus generate more profit for the organization.

Have you ever considered your vendor relationship as a key part of your growth strategies? Give JKL Associates a call at (313) 527-7945 or send us an email to discuss.

Questions or comments – email us at or call our Office at (313) 527-7945

Copyright – JKL Associates 2012

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JKL Associates
18530 Mack Ave #242
Grosse Pointe Farms MI 48236

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