Most of us start our business because we know a better way to get something done, we know our industry or we have a passion for the service and/or product we want to provide. Our enthusiasm and energy carries us for months or years as we work 10 to 12 hour days 6 or more days a week. We do what we are good at doing - and we often ignore or hope that what we aren't good at will somehow work out.
Unfortunately at best, this is a recipe for problems.
Business has certain activities and procedures that must be handled efficiently if we ever hope to get beyond our 12 hour days and our limited work capacity.
I have worked all across the US, in Scotland, Canada and the Virgin Islands. I have worked in Transportation, Food & Beverage, Construction, High-Tech, and Energy. In all of those different industries, there are 8 operational core business fundamentals that must be followed.
Plan.
Plan before you start and plan continuously.
Operate.
Operations includes all the things you do to get your product and/or service out the door and in your customers possession. It includes how your organization is structured, what your employees roles & responsibilities are, how they are paid (including incentives) and how they are held accountable among many other things.
Avoid Risk.
Avoiding risk is more that simply carrying appropriate insurance.
Avoid Taxes.
Tax avoidance is legal, Tax evasion is not. Do you know the difference and how to take advantage of what's legal?
Control Costs.
Cash Flow, Pricing, Company Budget, Profit & Loss Indicators all combine with additional systems to help you control your costs.
Sales & Marketing.
Do you track your sales promotions? What is your USP? Do you get customer feedback and respond to it? Are your sales people trained to your specific system?
Communicate.
Does everyone in the company have a good idea of what everyone else is doing? Do they all know why you have the very best product in your market?
Is the owner getting what s/he needs?
Owners have a tendency to work too many hours, carry high stress and forgo financial rewards to keep the doors open. If you are doing all that - you are doing it wrong.
Leadership: The 9th Core Business Fundamental.
Poor leadership can undo even the best systems and processes you can put in place. Learn how to be a forward focused - results oriented leader and give that attitude and vision to your entire company if you want to succeed.
ies us for months or years as we work 10 to 12 hour days 6 or more days a week. We do what we are good at doing - and we often ignore or hope that what we aren't good at will somehow work out.
Unfortunately at best, this is a recipe for problems.
Business has certain activities and procedures that must be handled efficiently if we ever hope to get beyond our 12 hour days and our limited work capacity.
I have worked all across the US, in Scotland, Canada and the Virgin Islands. I have worked in Transportation, Food & Beverage, Construction, High-Tech, and Energy. In all of those different industries, there are 8 operational core business fundamentals that must be followed.
Plan.
Plan before you start and plan continuously.
Operate.
Operations includes all the things you do to get your product and/or service out the door and in your customers possession. It includes how your organization is structured, what your employees roles & responsibilities are, how they are paid (including incentives) and how they are held accountable among many other things.
Avoid Risk.
Avoiding risk is more that simply carrying appropriate insurance.
Avoid Taxes.
Tax avoidance is legal, Tax evasion is not. Do you know the difference and how to take advantage of what's legal?
Control Costs.
Cash Flow, Pricing, Company Budget, Profit & Loss Indicators all combine with additional systems to help you control your costs.
Sales & Marketing.
Do you track your sales promotions? What is your USP? Do you get customer feedback and respond to it? Are your sales people trained to your specific system?
Communicate.
Does everyone in the company have a good idea of what everyone else is doing? Do they all know why you have the very best product in your market?
Is the owner getting what s/he needs?
Owners have a tendency to work too many hours, carry high stress and forgo financial rewards to keep the doors open. If you are doing all that - you are doing it wrong.
Leadership: The 9th Core Business Fundamental.
Poor leadership can undo even the best systems and processes you can put in place. Learn how to be a forward focused - results oriented leader and give that attitude and vision to your entire company if you want to succeed.
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