Ep. 147: Switzerland Structure
- Danielle Mulvey
- November 21, 2023
In this episode of Profit First Nation, Danielle discusses the importance of the "Switzerland Structure" in your business.
The Switzerland Structure is about avoiding over-dependence on a single customer, employee, or vendor to ensure the long-term success and profitability of your business.
Danielle emphasizes the need for diversification, customer value analysis, employee cross-training, and vendor audits.
IN THIS EPISODE:
[00:27] Introduction to the podcast and the topic of the "Switzerland Structure."
[02:38] Explanation of why it's crucial not to be overly dependent on one customer, employee, or vendor.
[08:14] The Pareto Principle applied to customer diversification.
[12:04] Avoiding over-dependence on a single employee by cross-training and ensuring no one is a linchpin.
[17:57] Conducting a vendor audit to prevent over-reliance on one supplier and keeping incentives in check.
[21:54] Encouragement to submit questions and information on how to connect with certified Profit First professionals.
KEY TAKEAWAYS:
Don't rely too heavily on one customer. Diversify your customer base to ensure steady income and reduce risk.
Prevent over-dependence on a single employee by cross-training your team, ensuring others can cover their responsibilities.
Regularly review your vendor relationships and consider incentives carefully to maintain a healthy balance between quality and cost.
