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

Nothing has changed (people of the lie - Marketing)

So many times people buy into the appearances and do not think or look at the substance of what people say.

How many times have you allowed people to seduce you with the flawed logic of it 20XX and things are different now? 

Consider these question to illustrate some points:

• Did lying suddenly become ok?
• Did stealing suddenly become ok?
• Can you run a business spending more than you make?
• If no one buys your product or service are you in business?
• Did gravity reverse or cease to work somehow? 

Many things inspired this post but mainly some research I was asked to do

Did you know?

• Nearly two thirds (65.2%) of the adolescents in the lowest income group were from single-parent families, only 6.4% of those in the upper-income group were from single-parent homes.
• Income and family structure were moderately interrelated. 93.6% of Youth whose parents reported income of $40000 or greater came from 2-parent families (86.3% of these were White, 7.2% Black, and 6.4% Hispanic). Conversely, 66% in the lower-income group were from single parent families (43.1% of these were White, 38.6% Black, and 18.3% Hispanic).
• The higher a family’s gross income the less likely that child is to engage in risky behavior
• A child from a two family household is less likely to participate in risky behavior than one from a single parent household 

Some of the Sources

Links

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Something to think about

• So if these are the facts then how can someone say I can raise a child as well by myself as I can with a partner?
• How can someone ignore documented facts
• Could it be the facts differ and so the individual wants to justify their actions so they make a statement to justify and rationalize what they are doing (or are the figures and statistics the rationalization)? 

Further without saying which school of faith one could argue regardless of belief that as we deviate from the principles of scripture we get in more trouble. 

So what is the Bible or for that matter a majority of religious spiritual text about? 

People who do not like to be held accountable to a higher standard of behavior might argue guilt. Yet one could also state perhaps all are about the following:

• Accountability for your thoughts and actions
• Living circumscribed lives (doing no harm)
• Reaching some form of enlightenment
• Not putting things before people
• Service to and respect of others
• Separation of Church and state
• Character is important
• Self respect
• Self control 

Consider

• Do any of this sound familiar?
• How did cherubim go from fierce warriors (in genesis) to the cute childlike figures: interesting stories here http://www.angelsonearth.com/
  
• Have any of these concepts changed in 2000 plus years (secularly or spiritually)? 

For those that want it done in a more worldly way lets take some various topics and look at Business

Did you know the oldest business in the world that is still functioning is almost 2000 years old (well 1500) years old (link). Also here is the The Oldest Corporation In the World.

• Can you run a business spending more than you make?
• Can you have a business without customers or clients? 

Let’s look at acting:

• Now we have cable TV
• Before we had TV
• Before we movies
• Before we had silent movies
• Before we had radio
• Before we had theatre
• Before we had traveling mistrials 

All is the same the medium we use to enjoy has changed but not the purpose 

Let’s look at communication:

• Now we have twitter and high speed internet
• Before that we had cellular internet
• Before that we have sms messages
• Before that we had cell phones
• Before that we had AOL
• Before that we had Chat rooms
• Before that we have email groups
• Before that we had email
• Before that we had UPS/FedEx
• Before that we had USPS
• Before that we had telephone
• Before that we had radio
• Before that we had telegraph
• Before that we had horse mail carriers
• Before that we had foot carriers
• Before that we had drums
• Before that we had smoke signals 

Yet what has changed – NOTHING – again only mechanism not the function 

We can to this with

• Transportation
• Education
• Warfare
• Technology
• Etc 

What are your thoughts?

3 Blind Mice (What is business and the Big 3) or Lost in Space

Do you remember that nursery rhyme growing up?

Have you considered how can the blind lead the blind. If the leader has no idea where they are going then what? 

Remember the Hyundai assurance plan – loose you job they will pay for 6 months?

• Now GM is saying they will do 8
• Form is saying they will do 12
• I have to wonder what Chrysler will say 

On one level I appreciate what they are doing and yet on another I have to ask myself is this not more enabling behavior?

• Is this designed to help people or is it a race to the bottom?
• Is this the altruistic auto maker helping the consumer or another copy cat marketing plan to exploit the consumer and more cars? 

How about this for a brilliant idea – manufacture cars people want instead of making a car and convincing the consumer to by. I drive a Ford and yet many in my family on both sides were diehard GM people. Why, because of our experiences with the respective brands – I have driven GM and was not impressed with their design aesthetics back them – very clumsy.  As a business owner I remember talking with a few of my friends, fellow Dartmouth Exec Business Alum and peers joking about the fact that given a chance we could turn these companies around and yet we know they would not retain us to do so because what we would require and the changes we would make would be deemed to radical on an institutional level and radical organizational level.  Any yet I know that neither I nor my friends will get a call or an email requesting our services. 

Here is the lie that has been taught for years – the purpose of business is to make money – talk about ego and entitlement issues – WRONG!!!!!!!!!!  Want to know the purpose of business – to provide a quality good or service to the end user what enhances the value and quality of their life in such a way they are willing to pay you for it! In my prime I had almost 10 people full and part time working for me and have at times like this had to contract down to me yet never was it about what the client/customer could do for me – rather what they needed. Bottom line is this simple truth of which we lost sight – a business exists to provide a needed good or service to solve a real consumer problem. 

• With all of this is mind and looking at the current financial problems in society – what is the answer?
• Also, with the advent of the digital age and the eminent demise of the industrial age how had the business model changed?

Business Lessons - A few thoughts on Reliability

When you buy something be it a service or a product you want to make sure that product or service is dependable. You want to know when you turn the ignition the car or truck starts, when you flip the switch the light comes on when you pay your bill the balance is reflected in he online statement.  That is called reliability. 

As a business owner you want to make sure your product or service is reliable and that your client can use it with little to no thought.   Reliability is the ability of a person or system to perform and maintain its functions in routine circumstances, as well as hostile or unexpected circumstances. 

What does that mean – regardless of the circumstance or situation people expect it to work. Imagine if you will PC, the electricity is ok and everything else works but it is raining outside (thought the PC is inside) and due to the slight change in moisture the PC refuses to boot – that is not reliable and the client will have little to no use for this system in fact you will soon loose this client because they cannot depend on you or your product. Imagine you were a service provider and you made a commitment to be on site at 11 AM and did not show – again you are not reliable so you will loose the client. 

Reliability is one of the foundational issues required for the success of your business.