At one time, I mistakenly believed these two types of organizations were mutually exclusive. While there are certainly differences, they share many similarities and have common issues.
Having worked closely with many successful leaders over my career, here are some of the fundamental rules that they lived by:
UNDERSTAND YOUR FINANCIAL STATEMENTS. This is the “foundational” building block of being successful. Your ability to know how your organizations revenues and expenses flow through your statements gives you the knowledge to make the right decisions and to understand when there are problems. I have seen many organizations fail to appreciate this rule and jeopardize their future as a result. Your accountant or controller should have your financials for you no later than the 10th of the month following.
CHECK CASH FLOW DAILY. I have seen successful organizations get into serious financial trouble because they literally ran out of “cash.” They had resources on paper, but nothing that was readily accessible. Examining inventory levels and turns; aging receivables; and, payables; are all great places to start.
ARE YOU WORKING MORE THAN 10 HOURS A DAY AND 7 DAYS A WEEK? Dedication is understandable. Owning your own business certainly requires than a 40-hour workweek; however, “burn out” is only a matter of time. For any owner or leader, hire good people to help and trust them to carry some of the load, you will find you will be able to “drive” your organization better.
HIRE SMART PEOPLE. If you feel you are always the smartest person in the room, your team will only grow as far as you can push it. The hallmark of great owners and managers is the ability to find and hire people who are better at certain things than they are AND NOT FEEL THREATENED BY THEM. For example, at one point, I had twelve former business owners on staff; their understanding and business acumen was invaluable.
WHAT ARE YOUR COMPETITIVE ADVANTAGES? Do your associates, your customers, and do you emphasize them in your advertising? I would be willing to bet the answers will surprise you. What makes your organization different, what makes it special?
UNDERSTAND THAT YOU DO NOT HAVE A MONOPOLY ON GOOD IDEAS. At conferences and meetings seek out fresh ideas, listen to concepts that have failed and learn why. Maybe you or one of your associates will have the key to making it work.
ENCOURAGE YOUR PEOPLE TO SPEAK THEIR MIND. Many owners and managers say they have an “open door” and they welcome fresh ideas and feedback. In practice, that is far from the truth, at least in my experience. You may not hear what you want to hear, but having your associates tell you what they are thinking will make your organization strong. Too many owners and managers surround themselves with “YES PEOPLE” who will agree with you right until you crash.
ENCOURAGE RISK TAKING AND ACCEPT MISTAKES. ENCOURAGING RISK (salestrainer.blog) Too many owners and managers punish mistakes and stifle growth because they are afraid of the potential risk. Build safeguards and develop systems and processes that encourage new ideas.
MAXIMIZE SUPPLIER SUPPORT. What are their best payment terms? Do they have market development funds (MDF); do they have Co-op advertising funding? Do they offer floor display allowances, free point of purchase materials? When dealing with any supplier, ask what deals or clearance items they have.
BUILD RELATIONSHIPS WITH YOUR SUPPLIERS. Listen to their ideas, insights, and appreciate their issues. The very best owners and managers are genuinely interested.
HAVE A PLAN FOR MEETING WITH YOUR SUPPLIERS. When suppliers visit, consider asking these types of questions before discussing new business:
- Have all our claims been resolved?
- Are there any service issues still unresolved?
- Are we waiting for any return authorizations?
- Do we have any questions from the sales team?
- Then I would talk about orders.
STAY FOCUSED ON WHAT IS IMPORTANT. Each day is full of distractions and interruptions and it is easy to drift from your focus. For example, consider what some organizations spend on their physical building: For sales organizations, having a nice building is important, but you do not sell the building to make your daily sales. Make sure that it is your people, products and merchandising that makes your store “pop” because that is what people will remember. For non-profits,” a functional workplace is all that is required, not some glass and steel edifice.
HAVE A MARKETING PLAN. Twelve/six/and three month. Use a multi-pronged approach to marketing and advertising. Use social media but take the time to appreciate the nuances of this marketing, use radio, and do not ignore print even though it is declining. Whatever you use, measure the results. Remember BE DIFFERENT and STANDOUT, people tend to notice your advertising when they are shopping for products they need otherwise your advertising is invisible UNLESS IT STANDS OUT.
MAKE PROFESSIONAL DEVELOPMENT PART OF EVERY DAY. Each day allow 30 minutes for structured or unstructured training. Sources could include trade magazines, business books or blogs, or listening to podcasts or audio books. There is so much helpful information available, essentially free, and most people, 90% of them according to self-help expert Brian Tracy, never even look at it. Encourage all of your associates as well. Daily and weekly meetings focused on skills and role-playing will give your organization many competitive advantages.
DO ANY OF YOUR ASSOCIATES EARN LESS THAN A LIVING WAGE? Can they afford to purchase or use the products or services that you offer? Being a profitable company and a socially response company is not an oxymoron.
GET INVOLVED IN YOUR COMMUNITY. Join your local chamber of commerce, the Canadian Federation of Independent Businesses, and the board of a local charity. All of these groups do important work and provide information on business issues for small and medium size companies. There are networking opportunities and it is a great way to share resources, ideas, and finding areas of cooperation that will save you money. Joining the board of a local charity will help balance your business perspective.
KEY PERFORMANCE MEASURES. Have at least 5 that you track daily, whether you are a “for profit” or “not-for-profit”. Make sure you measure performance and the things you are trying to influence, share the results with your people. Many smarter people than me will tell you that if you want to improve something, you need to measure it, and they are absolutely correct.
SUPPORT LOCAL CHARITIES AND COMMUNITY GROUPS. SUPPORTING YOUR COMMUNITY (salestrainer.blog) Activities range from donation of time or money or door prizes. Participating in your local high school’s cooperative education program is another great way to support your community. Whatever costs you incur are more than offset by the goodwill that will repay you many times over.
ASK QUESTIONS. Never assume or be intimidated by people in authority. Always be respectful, but challenge their ideas without being insubordinate. Ask questions, ask for help with problems, ask them for suggestions and ideas, listen and learn.
BE HUMBLE. When asked about what makes your organization successful, regardless of who is asking, always give the credit to your family and your associates, talk about yourself last. I have been to so many meetings where the owner or manager takes all the credit for the success of the organization, especially when their key people are in the room. One of the key ingredients for success is to be humble.
This is far from an exhaustive list, but I have been fortunate to work with some truly great owners, managers, and consultants. In addition, I have seen first hand the dedication and selflessness of many people in the charitable sector. These are their lessons.
I hope this helps,
Good luck