When you think of running a successful business, the image of a tube of toothpaste probably doesn’t come to mind. However, running your business is like a tube of toothpaste – maximizing resources, focusing on output, and managing supply and demand. Let’s give this idea a squeeze and explore how the Toothpaste Principle applies to business.
Most of us are familiar with Parkinson’s Law, if not by name, certainly the principle, “Work expands to fill the time available to do it.” We’ve all experienced the effects of Parkinson’s Law in our shops. No matter how much or how little work we have, it always takes the entire day to get it done.
On the contrary, the Toothpaste Principle occurs when we try to squeeze too much work out the door without considering the capacity of our team to produce it. It’s not a matter of the work expanding to fill the time. It’s that the work is crushing in on us, creating undo pressure and stress for the shop. There’s another name for this. It’s called Overcommitment Syndrome.
Overcommitment Syndrome can have devastating results. We tend to take on more tasks than we can handle, leading to a never-ending cycle of overpromising, overworking, and underdelivering. In your shop, this leads to ineffectively using resources, ultimately, impacting the bottom line and team morale.
To avoid Overcommitment Syndrome, adopt processes that maximize resources without straining them. This means finding ways to streamline processes, eliminate waste, and make reasonable demands on available resources. In other words, fight the battle with the army you have, not with the army you wish you had.
Back to the toothpaste analogy, of course, we want to get every drop of toothpaste out of the tube, but the best way to do that isn’t to grab it in the middle and squeeze with all your strength. This doesn’t mean that you lower your expectations either. You must carefully and gently squeeze the tube.
For example, when it gets busier than normal, instead of leaning on employees to work faster, harder, or longer, to manage an increase in demand, you might consider outsourcing. In planning ahead, consider innovative technology to increase productivity and efficiency. By doing so, you can avoid unnecessary expenses and optimize your resources for maximum output.
FOCUS ON QUALITY OVER QUANTITY
In our more-is-better business culture, some shops may feel pressured to constantly produce more and grow at an unsustainable pace. Nothing throws a wrench in the works like comebacks and no-goes. The Toothpaste Principle reminds us that it’s not about how much of something we have, but rather the quality and value of what we produce. In other words, it’s not about squeezing out tubes of toothpaste as fast as possible – like over-scheduling work. It’s about making sure each tube is packed with high-quality toothpaste – completing the jobs correctly.
Similarly, in business, shops should focus on producing high-quality products and service rather than just churning out more. This approach not only ensures customer satisfaction but also helps to maintain a sustainable and profitable workflow without overtaxing resources.
THE ART OF BALANCING
You balance squeezing too much toothpaste onto your toothbrush to ensure having enough for one last brush. Shop owners must also balance supply and demand in their business. Too much supply can lead to excess inventory and wasted resources, while too little can result in missed opportunities and dissatisfied customers. To effectively manage this balancing act, you must stay on top of market trends, anticipate demand fluctuations, and adjust production accordingly. This requires understanding your market and pivoting quickly when necessary – just as we did during COVID.
THE TOOTHPASTE PRINCIPLE FOR YOUR SHOP’S SUCCESS
The Toothpaste Principle may seem simplistic, but its impact on your shop is significant. By maximizing resources, focusing on output, and managing supply and demand, you can create a sustainable and successful business. So next time you reach for your trusty tube of toothpaste, remember the lessons it holds – carefully and gently squeeze and watch your business thrive.
Keep squeezing! As always, I look forward to serving you and our future together.
Note, Thom Tschetter’s Up Your Business column in this issue expands on some of the points in this article.
