7 Proven Principles of a Successful Business MAN
Imagine if there was a proven, step by step method to take your business from where ever it is now to the point where it was a cash generating machine that could work completely without you!
There’s no need to imagine any more. Here it is: Your Secret to be a Successful Business Man!
Whether you are a startup business or you possess an already established company the same basic business principles apply to growing a successful business company.
A successful business man could be described as one that allows you to have more free time on your hands. One that allows you to live the kind of lifestyle that is less stressful, and that doesn’t require that you work long hours. It is also one that can run even without your presence and with little troubles from customers and staffs.
Does that definition also match with what you have in your head? Then you would what to follow these laid down principles that are helping Forbes 500 companies and that can help your business to grow and be self-sustaining.
Always Work on Understanding People.
To be an effective business leader you need to possess the ability to understand people. A lot of people I have met find it hard to understand people at a deeper level and find even harder to organize them to work together for a common purpose.
If you have to be a true business team leader you need to develop the knack to understand people. After all your business is not going to be only about yourself, it includes your team members or employees and then your customers. The way to understand or relate to them would determine how successful your business would be.
Your sales and marketing skills are determined by what you know about people. Your leadership skills with your staff to get them to perform as well as you do is determined by your knowledge on people.
So how do you get to understand people in business?
Scientists have proven that 97% of the communications we make are unspoken. So it is important to be able to read non-verbal clues of your workmates. This would include looking at what their dressing tells you, observe their posture, how they move their bodies, and definitely their facial expressions.
Another way to understand people is to imagine what it would look like to be in their shoes.
We do not want to be fast in judging people from what our intuition tells us about them. Try to gather as much facts or clues as you can about the person and why they act the way they do.
Look for the good in others and how to make their strength and weakness work for the good of the team.
Be tolerant in relation to their personal beliefs, morals and values.
Now this skill of understanding of people, how they think and act only gets better as we practice.
Learn business success principles.
I was in my second year in the University and I had this great business idea. I wanted to tell everybody about it; especially people who I felt had the business experience, the needed skills and discipline to make it happen.
One day I met one man, who we would call Mr. Ezra Jones. He was a successful man in his career and lately has been thinking of starting a business of his own or investing in a successful venture.
As we sat over a drink, one evening, I told him about this great business idea that was been busting in my head, that I couldn’t wait him and the whole world to hear about. After pitching the idea to him he then said something that struck me.
Ezra said, “Your business can make huge turnover in millions of dollars, but not profit.”
There it dawned on me. I was dazzled and speechless for a few seconds. That was my first of many lessons in my entrepreneurial journey. Yes, you can be making huge millions of dollars in your business but not making profit. That meant that if the business cannot prove how it can make money overtime or get break even then that business is in line to crash.
Your aim should be to increase your net profit percentage of turnover, as this allows you to grow and pay yourself whatever you desire.
Increasing your net Profit percentage comes from improving everything you do. From cutting expenses to creating cost effective marketing strategies, and even to small things like how you talk to a client on the phone, where and how you place your ads.
Another principle of business success is cash flow.
Cash flow means having more cash in your bank account that is flowing with your customers. If customers cost you money before you get any back, that’s negative cash flow, if you get cash before you incur a cost that’s positive cash flow. The better you get at getting money up front with deposits and getting people to pay on time the better your cash flow.
Set Goals and Have a Plan to Achieve Them.
Next step you have to take to achieve business success is to set goals. Write them down as you would a business plan. These goals can be financial goals, marketing goals, and management goals.
Once you get to set your business goals then the strategies you want to use to achieve them would easily come together. Align your business goals with your mission statement.
To set goals that leads to success you need to set goals that we call S.M.A.R.T.
Specific: when your goals are specific you know exactly at you want to achieve, when you want to achieve it, how you want to achieve it, who would help you achieve it, why you want to achieve it and what alternative ways of achieving the same result.
Measurable: a measurable goal can be quantified. That is to say once you can attain to that goal certain parameters or milestone should be evident.
Attainable: is your goal achievable? That means do you have what it takes to make your goal possible.
Relevant: you should consider if your goal is really important to you or would help you achieve your important objectives in life.
Time Bound: set deadlines for your business goals.
Once you can get your goals right then the strategies should come seamlessly. While some may struggle with that I know of over 300 strategies, but most people can only think of about a dozen. Brainstorm every day and come up with at least 10 new strategies every day.
Take strategies like tools. They help you to achieve your goals faster. If you a few strategies in your arsenal it would take you a loger time to achieve your set goal.
Next develop a Business Growth Plan to go with your strategies. That is listing out these strategies according to importance. This would make growing your business EASY!
Make Your Staff a TEAM.
Like we mentioned early a lot of people do not understand other people easily, so instead of having to get more people into their business and run the risk of having drawbacks from ineffective staffs they prefer carrying out their business on their own.
I know a lot of people who are into small business say tailoring and they have been on it for many years. Sometimes I look at them and imagine how far they would have gone if they had more staffs. Most times they only time this kind of people grow is when their wives or their children joins them in the business, because to them that is the only people they can trust.
It is important to learn your business knowledge to other people. Yes, this people can learn the trade and leave you in time, but truth is while they are with you can achieve a lot more than you would alone. Most importantly, you would have more time for yourself and for your family without being stressed, tired, work long hours and remaining at the same business growth year to year.
To turn your staff into a working team aim at teaching everyone in your business how to do everything you currently do, better than you do. Teach them step by step what to do to bring a certain result. These can be properly documented in the company’s business plan.
This brings to our next discussion about how to build strong foundations for your business growth.
Build Foundations for Business Growth.
If you want to build a business that really works even in your absence then you have to build a strong foundation.
Acknowledge that building a strong business foundation is for only business people who want to increase profit. So if you are not looking at increasing your profit then this subject is not for you.
There are two ways in which you can build a strong foundation in business:
First, have a documented system. A system is just a best way of doing something that everyone knows and uses that has been identified and written down. It creates consistency and efficiency in a business and as the business grows the systems holds the employees accountable, and not to you the owner. That means you save time checking on everyone. Systems only work when you have worked with your staff to turn them into a TEAM.
Secondly, measuring everything is part of building foundations. If you haven’t measured your Key Performance Indicators how will you improve on them? Increasing Net Profit percentage of turnover comes from improving everything you currently do, remember?
Implement EFFECTIVE Sales and Marketing.
Everyone in business is already doing sales and marketing but how effective is it?
The question is, “how do you know that your sales and marketing is effective?” Some of the ways a company knows their sales and marketing is effective is when you don’t have a lot of customers asking you a lot of questions such as the pricing. Another way to know is when you cannot handle the number of customers coming in. Additionally, you will know your sales and marketing is effective if you increase the price of your product/services and still have increase in your conversion rate.
Once you can master this you can master the sales and marketing of your business then you will get the result you desire.
Why not consider paying a sales and marketing professional for a few months it will be the best investment you ever make.
Once you learn the principles of success you can be assured of significant results in your business.
Manage the business.
Managing a business is the bedrock for its continuity. Managing a business effectively would mean making new decisions based on numbers or results, developing a documented system, having a regular weekly team meeting and sometimes a one on one team training.
This involves making analysis of how many customers you are serving in a week, the volume of marketing that brought that result, how many team members was involved and how many new employees you might want to employ.
When you dedicate time to learn and then follow all 7 Principles, in the order above anything is possible. I’ve had clients increase their monthly turnover by 1,000% in just 5 months when the business wasn’t growing at all and the owners did it with ease and grace, no stress at all!
What’s your growth potential? Are you realizing it yet? If you’re not growing at 50%-100% a year you’re possibly not growing as fast as you could!