Eight tips that could help achieve business success and improve profit
To maximise your business success and improve profit, there are eight key tips that should be adopted. International researchers who have studied many small businesses have found that these tips consistently play a part in business success. They are:
- Owners leading by example
- Having a simple business structure
- Information sharing among employees
- Staff are carefully chosen
- Staff commitment and loyalty
- A unique product or service
- A specific customer focus
- Prompt follow up
1. Owners lead by example to achieve business success and improve profit
The owner leads by example. He or she is usually the first to arrive and the last to leave. They know everyone by name and their presence is obvious. They show a strong commitment, setting high standards all round. This commitment should be easy to understand; after all, if they don’t work hard in their own company, how can they expect any one else to take their business seriously to achieve success and improve profit?
2. Simple business structure
They operate a simple and open business structure that includes an open door policy for every employee. They value the contribution of their employees, many of whom are given the opportunity to influence aspects of the business that would ordinarily be denied them in a large hierarchical company. This type of approach ultimately will encourage business success and improve profit.
3. Information sharing among employees
Goals, problems and concerns are discussed openly. Feedback is encouraged and staff are asked to contribute their own ideas for making improvements and overcoming difficulties that ultimately will achieve business success and improve profit. It is often this aspect of open communication that staff appreciate the most; after all, it is fairly unique to small businesses.
4. Staff are carefully chosen
Staff are recruited very carefully because the owner recognises they are vital to their business. Staff are hired on the basis of their knowledge and skills which will be beneficial to the business, not because of friendships or family links with the owner.
5. Staff commitment and loyalty – how this can affect business success and improve profit
When staff are very committed and loyal, good performance is rewarded with praise, extra responsibility and money. Poor performance is not. Consistently poor workers are removed as they upset the balance of the team. Companies whose staff show optimum commitment and loyalty have a source of competitive advantage that is hard to copy or beat. Successful staff breed business success and improve profit.
6. A unique product or service
Most successful businesses have unique products or services such as their own designs, products, systems or some other aspect which sets them apart from their competitors. They work hard to sustain this advantage by being innovative and constantly adapting to market changes.
7. A specific customer focus
Successful small businesses always focus on their customers’ needs and endeavour to supply them with what they want. This focus means adopting a market-led approach and always looking for ways to improve products and/or services.
8. Prompt follow up
On occasions when an enquiry or complaint is received, successful small businesses deal with them as quickly as possible. The results are promptly reported back to the customer and, in the case of complaints, measures put in place to reduce the likelihood of similar issues reoccurring. Successful small businesses view complaints and problems as opportunities for growth and improvement.
One person whose publications make an interesting read is Richard Branson – here is a guy that truly has got the right mix bang on! Genius? Maybe! You be the judge.
If you need help on how to achieve business success and improve profit, call us today on 9204 3733 or Contact Us – we will be happy to help. We can offer our Management Consulting service which can assist.