The most common methods for evaluating the growth and success of a business have to do with money – sales, revenue, cash flow, profit and loss, etc.
Money is important – no question. The primary reason for being in business is to make money. When you’;re getting started you need enough money to keep your business open until it becomes profitable. From your first day you need to pay attention to cash flow and profit. Having all the money you want and need makes your business life and your personal life better.
However, money comes as a result – even start-up money. Money is raised and money is earned as a result of the quality and effectiveness of the people, structure, leadership and communication involved in the promotion, protection and operation of your business.
Successful businesses happen when the right combination of people, structure and leadership is achieved. Hugely successful businesses happen when leaders establish, nurture and expand a high-trust environment, and continuously monitor and improve the effectiveness of internal communication.
Pay close attention and continuously evaluate these four key areas that drive business growth and success. Take every opportunity to improve them.
People: Whether you’;re a lone-wolf business owner / solo-preneur or you have employees, the right involvement with other people is absolutely necessary to your success as an individual and the success of your business.
• Attracting the right people
• Recruiting the right people
• Screening and ranking applicants
• Interviewing effectively
• Engaging the right vendors, contractors, consultants, etc.
• Hiring the right people
• Effective on-boarding / assimilation
Structure: We all want freedom, but to be truly successful we all need structure in some form. It’;s a fact of life that we all do better with the right guidance.
• A clear statement of your business purpose / mission
• A clear statement of where you’;re headed as a business – vision
• Clear and complete policies & procedures – regardless of whether this is one line or a comprehensive handbook, the content needs to be very clear and understood as you intend it to be understood.
• Clear expectations based on results- answer the question "How would I know this person was doing a good job?"
• A complete list of the values that guide your business – the standards, principles and beliefs you refuse to compromise
• Clear and complete systems of operation
o Selling and Marketing
o Order fulfillment
o Inventory management
o Customer service
o Communication management
o Performance evaluation, and
• Excellent management & supervision
o Building productive teams
o Facilitating effective meetings
o Growing employees, and
• The right tools, equipment and resources
• Opportunities for growth and advancement
Leadership: In order to achieve a goal or result everyone engaged in achieving the result needs someone trust to lead the way.
• Declared Leaders
• Directed Leaders
• Natural Leaders
• Leadership Skills
• Leadership Attributes
o Being a daily example of purpose, values and behavior
o Establishing and expanding an atmosphere of trust
Communication: The best ideas, the best products, the best processes, the best systems and more only achieve their full potential with the proper use of effective communication.
• General communication skills
• Behavioral communication skills
• Specialized communication skills
o Facilitating meetings
o Making presentations
o Presenting complex subjects
o Solving problems
o Resolving conflicts
But it’;s a lot of stuff, but effectiveness at everything mentioned above is absolutely necessary to achieve business success.
The good news is you do not have to learn it all at once. The best way to learn is consistently monitor and evaluate your business and make improvements every chance you get.