The Secrets of #Business Success

For years I have read many books on how to run and build a successful business. Some books say write a business plan, others talk about elaborate systems of control, even others speak of marketing.  All of these are good but they do not speak to the core issues. 

There is a saying the more things change the more they stay the same. Fact is what is takes to run and grow a business has not ever changed. Before discussing how to create a successful business let me explain simple why businesses fail.  I will start with a simple truth – a business runs at an imbalance – that is it spends less money than it generates in revenue. An unsuccessful business spends more than it makes in revenue (to grow) or spends exactly what it makes. It really is that simple and that is why a business fails. 

Some will tell you either grow or die and that to some extent is true however it is not the growth that is important rather it is the type of growth – is it natural and sustainable and balanced based on true business needs (like the cycle of nature) or is it forced, cabalistic an hostile in nature like (like a predator in an ecosystem with a limited source of food). The first can be maintained it is controlled the latter if left unchecked (i.e. driven by greed) will lead to the demise of an already fragile ecosystem and the eventual death of the business and all associated with it. 

The underlying principles that determine the sustainability and success of your business have not changed since the beginning of time. 

• Respect
• Honesty
• Trust 

Without these three (3) basic ingredients a business will fail 

• Respect – seeing and understanding the value, contribution and importance of all things (people, facilities, equipment, contractors, suppliers, employees, clients, customers, etc) involved in the enterprise and maintaining or working to enhance or at a minimum maintain them.
• Honesty – understanding your core values and strengths and providing a full disclosure to all involved so that they can made an educated determination as to your value and ability as well as remove any doubt regarding your being able to execute the terms of the agreement and knowing that if you cannot you will tell them
• Trust – the obvious result of doing the first two.    

When these characteristics are in place people can them rely on you to and trust you with their wellbeing because fact is in business you are hired to solve a problem and you do not do business with people you do not trust long term. 

Sure a book will give you all of this great theory

• Microeconomics
• Macroeconomics
• Business Ethics
• Organizational Behavior
• Financial Accounting
• Managerial
• Accounting
• Sales and Marketing
• Human Resources
• Cash Accounting
• Accrual Accounting
• Leveraging
• Business Ethnics
• Supply and Demand
• Strategic Planning
• Business and Contract Law
• Information Mapping
• Manufacturing and Production
• Operations Management
• Statistics
• Technology and Information Systems 

And a host of other theories but as is always the case in the reality and truth of what is required is simple we as people make it complicated.

• Add value
• Do your best
• Solve Problems
• Keep your word
• Service before Self
• Spend less than you Earn 

If I have left anything off feel free to add

Business Lessons – A few thoughts on Predictability

What does it mean to be predictable and why is this an important trait in any relationship but especially business. It is because predictability is the essence of trust. We trust people and things that we feel comfortable with and those things we feel comfortable with are those things that and people that perform consistently to or above the expectations we have set in our mind. 

Let me explain it this way when we are driving and we pull the urn signal up we know the right light will come on down the left. When we turn the steering wheel clockwise we turn right counter clock wise we turn left. These actions are predictable because we do the same thing and we know we will get consistent results. This is what we look for in businesses, business people and supplies. We trust things that we know the outcome and we can predict what will happen based on the circumstance. 

To quote predictability (also called banality) refers to the degree to the fact that a correct prodiction or forcast of a system's state can be made either qualitatively or quantitatively. 

So my question to you as a business owner understanding this is a foundational issue key to your long term success and sustainability – are you predictable? 

Consider these to get the idea:

• What if the Sun did not rise every day in the  same place or at all?
  
• What if the power did not come on even though you paid your bill?
  
• What if the sanitation people did not pick up your trash weekly?
  
• What if a track athlete decided instead of finishing the race to stop 2/3rds of the way?

Business Tip: What characteristics should you look for when selecting a service provider?

• Customer focused – they should be concerned with how they can help you achieve your goals not on pushing their own solution on you and forcing you to adjust to them
• Focus – They should be committed to providing you the best possible solution to your problems
• Integrity – they should be good to their word
• Technical expertise/experience – they should have in house or access to the knowledge and resources to resolve your problems
• References – Their portfolio of clients should substantiate their claims
• Loyalty - You want to know that the company will stand with and by you in both good and bad times, especially bad
• Partnership - You want to know the company views you as an extension of who they are not another firm to be exploited for your money to get stuff you do not need
• Confidentiality - You want to know that while they may discuss issues that you company data and information is protected
• Predictably - You need to know that you can count on their actions and words to aligned and that they are consistent