Business success can be seen as achieving a harmonious blend of financial stability, innovation, and positive impact. It isn’t solely about profits, though a strong bottom line is often a key indicator.
- Financial Growth and Sustainability: Consistent revenue growth and prudent financial management are foundational markers of success.
- Customer Satisfaction: Building a loyal customer base by delivering exceptional products or services reflects success.
- Team and Culture: A motivated, talented, and cohesive team with a supportive work culture drives long-term accomplishments.
- Market Position: Becoming a leader or innovator in a competitive market speaks volumes about a business’s success.
- Adaptability and Resilience: The ability to navigate challenges, pivot when needed, and embrace change is crucial.
- Social and Environmental Impact: Businesses that contribute positively to society and the environment often leave a meaningful legacy.
Thats great, but how do you get there?
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Know your numbers – locate your most recent balance sheet and income statement and follow the flow of a $1.00 through your financial statements. Can you do this? Does it make sense?
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Meet monthly (or more frequently) with your team – even if you hate them!
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Outside team – lawyer, accountant, financial advisor, management consultant, IT, etc., need to be there for you. If you do not like them, find new people to fill these roles.
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Do not do your own Payroll! (understand W2 vs 1099)! You are insane if you do it yourself.
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Know your insurance policies and understand them. Having a local agent you can talk to is also beneficial, as we will all likely have claims and need to understand our risk profile.
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Purchase a key-person life insurance policy for yourself or your partners. If you were not there this afternoon, what would the team do? Replacing an owner or key team member typically costs 5-7 times your salary due to the loss of institutional knowledge, networks, and relationships.
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Attend Industry conferences to stay current on current trends and re-energize yourself about what you do – someone is always doing it better. Sit back and observe others, conduct a SWOT Analysis, and form relationships with individuals in different geographic regions, among other activities.
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What will your industry look like in 5-10-20-30 years? Think crazy-AI, technology, war, etc.
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Pace yourself (slow and steady wins the race), but be ready to sprint when necessary to take advantage of opportunities. Is your team prepared to sprint at a moment’s notice?
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Expenses walk and talk – what are they saying about you and your company? People are
everything!
JMH Associates, LLC
Earle Harvey
www.jmhassociates.biz