| How does a small company become successful? It is | | | | owners where and how to spend money, and it |
| such a provocative question that it prompted me to | | | | provides ways to measure progress or shortfalls. |
| do some research. Despite the bad news we so | | | | Finance is the cornerstone of good business plans. |
| often hear about businesses closing or moving, I | | | | Business Processes: Another frequently mentioned |
| found some encouraging news. After interviewing | | | | attribute of success is the streamlining of business |
| and working with many small companies, common | | | | processes. We call this creating predictability. This is |
| trends began to emerge regarding what they did to | | | | probably the least understood attribute by small |
| be successful. There are a total of fourteen principles | | | | business owners. The intention here is to increase |
| and the successful companies implement most, of | | | | productivity and reduce costs while getting the same |
| not all of these principles: attitude, sales, business | | | | (or better) outcomes. Business processes are how |
| strategy, marketing, information technology, risk | | | | things are done within a business. Every company has |
| taking, process improvement, company culture, | | | | some processes; some are clearly defined, others are |
| work-life balance, customer service, finance and | | | | implicit. Successful businesses understood the need to |
| budget, general advice, discipline and training. | | | | continuously improve its business processes: to |
| Culture: Culture is defined as the "integrated pattern | | | | become more efficient and productive, and to |
| of human knowledge, belief and behavior that | | | | respond to market changes faster while providing |
| depends upon man's capacity for learning and | | | | better service to customers. |
| transmitting knowledge to succeeding generations." | | | | Information Technology: technology is important, it is |
| Culture is about attracting and hiring people who | | | | apparent that technology does not have to be |
| would be successful in the organization. It is about | | | | complex or costly to be effective. Technology is |
| driving the behavior that makes the company | | | | probably the most important enabler for change that |
| successful. | | | | a company can introduce. |
| Customer Service: Simplified defined, customer | | | | Marketing: Effective marketing performs different |
| service is about taking care of the customers. Many | | | | functions around unique selling environments. For |
| companies integrate customer service into their | | | | example, business-to-consumer enterprises have |
| culture through training and the design (and frequent | | | | completely different marketing needs than |
| redesign) of relevant business processes. In most | | | | business-to-business companies. Having a good |
| cases, the business plan dictates how they provide | | | | understanding of the pains your clients are |
| customer service. | | | | experiencing and how your product and services stop |
| Attitude: You must have a positive attitude and | | | | that pain is critical to business success. |
| accept 100 percent of the responsibility for the | | | | Sales: Every company's approach to sales is different. |
| results of the business. When responsibility is | | | | Some depend on building referral partnerships and |
| accepted, action can be taken to make the | | | | strategic alliances, and this is the extent of their sales |
| necessary changes to accomplish the desired results. | | | | process. Others aggressively attack the market with |
| Then, when success is achieved, you are generous in | | | | direct mail campaigns, cold calls and other forms of |
| giving credit to others within the organization. | | | | direct customer contact. The specific selling approach |
| Without exception, the most successful business | | | | is usually defined by the marketing plan. Successful |
| owners understand it is all about people: hiring and | | | | owners know that the concept of selling is a process |
| retaining the right people, eliminating ineffective | | | | that can be measured and improved, like all business |
| people and providing the necessary resources for | | | | processes. They talk about the importance of having |
| employees to master their tasks. | | | | a consistent, measurable and repeatable sales |
| Business Strategy: A large complex strategy or | | | | process, and they engage professional sales trainers |
| business plan is not necessary. A simple one-page | | | | (with flexibility to customize training to their selling |
| document will do, but it should be well thought out | | | | environment) to help create consistency within their |
| and well executed. A poorly crafted business plan | | | | selling process. |
| that is well executed is far superior to a well-crafted | | | | Training can be defined as "to form by instruction, |
| business plan the sits on the shelf. It defines and | | | | discipline, or drill and to teach to make fit, qualified, or |
| drives the activities and behaviors of the entire | | | | proficient." Because we live in world of continuous |
| organization. Without it, the business becomes a ship | | | | change, it is more important than ever to implement |
| without a rudder; it simply can not be steered and | | | | a culture of continuous learning. For many successful |
| goes in circles. A strategy should include a financial | | | | owners, continual investment in training is a major |
| plan, marketing differentiators, and product strategy | | | | attribute identified. For training to be successful there |
| as well as employee retention. | | | | must a direct link back to the business plan and an |
| Discipline: Discipline, or "staying the course," then | | | | understanding of how training supports the successful |
| executing the strategy. Discipline is not overreacting | | | | implementation of the business strategy. |
| to market changes, staying focused on your core | | | | General Advice: Without exception, every business |
| markets and measuring success as defined in the | | | | owner talked about how having trusted advisors is |
| strategy | | | | necessary for success. They know that they cannot |
| Risk: Business owners are not afraid to take | | | | know everything and searched out advisors they |
| calculated risks with clear outcomes in mind. Most | | | | could trust. They preferred to pay for this advice |
| owners who take risk do so because they realize the | | | | because they were looking for someone who would |
| need to change as the economic climates changes. | | | | challenge them, how them accountable, ask them |
| Each knows it is disastrous not to embrace change. | | | | important questions and introduce them to others |
| Successful business leaders understand that being in | | | | when necessary. |
| business is about managing and responding to change. | | | | There are three principles that every company needs |
| Companies that succeed embrace change and | | | | to follow. If they follow these three principles they |
| respond to challenges presented by the market, the | | | | are forced to address the others: the business owner |
| competition or changes in general business conditions. | | | | exhibited a positive attitude, the business created |
| Financial Roadmap: An important attribute is the | | | | and implemented a sound business strategy and they |
| creation of a financial roadmap and budget and | | | | had the discipline to they focused on the strategy. |
| having the discipline to follow it. This plan reminds | | | | |