The Primary Purpose of a Small Business Owner!
We all know that most small businesses don't survive the first few years. The handwriting is on the wall if there is:
- Low market demand--you can't get customers or they aren't buying
- Under capitalization--you lack money to grow or to do things right
- Undifferentiated strategy--you don't stand out in a crowded marketplace
- Difficulty reaching target market--no easy, low-cost way to reach customers
- Superior competition--other companies offer a better deal (see below)
- Ineffective management--you don't have the right people or culture
- Weak financial model--your gross margin or profit margin are inadequate
Assuming a business is not over-burdened by the above constraints, the most likely reason for lackluster performance, or even failure, is that the owner has not created effective business systems and processes that smoothly carry out the mission of the organization.
"Engineer" Your Business Systems
The reality is this: Your primary purpose, Mr. or Ms. Business Owner, is not to sell, manufacture, or provide a service. Your true calling is to be an engineer--a "business engineer"--one who plans, constructs, or shrewdly manages an enterprise." (Online Dictionary)
Your day should be spent designing, developing, overseeing, monitoring and evaluating all of the systems and processes that make your organization run smoothly, create value, and generate profit--the life blood of your business.
If you want to be an artisan, a sales person or a technician, you should get a job. Building a business is a completely different matter! If you are not the business engineer type, I hope you have a partner who is, or the budget to hire one.
Your role is to find the right people, create exciting and innovative products, and develop operational excellence that will enable you to find and keep your target customers better than the competition--all with a nice profit left over.
Be the "Best Deal"
Customers are looking for the best deal. They reward companies that serve them well and allow the others to fail. It is how customers feel about your business as a whole that matters most. Everything--including advertising, product selection, return merchandise policy, courtesy and knowledge of employees, location, price, delivery time, cleanliness, etc.--is what they are choosing. Your entire business is your product and it must shine throughout. When it does, YOU become the best deal!
Creating effective systems and processes will make your organization shine and keep your customers coming back for more! Are you ready to start engineering your business into something remarkable? It's not difficult, but it is crucial!
Read my eCourse, Box Theory™: Double Your Profit with High-Performance Systems and Processes and then get the software, Box Theory™ Gold. Whether you want to start, grow, fix or franchise your business, these are the tools to make it happen!
Wishing You Prosperous Times,
Ron
PS - Good systems pay for themselves in a dramatic way. You are losing money every day you wait to get started!