Adding value to the business is the key driver for eventual (financial) success. Making a profit is one step but you want a business worth more than it is today, for which you will want to find an attractive proposition for future purchasers.
So how do you do this?
Well, not by thinking about it but by planning, implementing good management information and process systems, and enabling your staff to exercise good decisions about your business.
Some key thoughts:
- Think about the business as an entity, not as you. Consider this for a few moments – success is when the business no longer relies on you for its day-to-day success.
- Build a team. Don’t just think about employing someone to do a job but look for the succession and longer term opportunities.
- Invest – manage your business by having good information on sales and profit. It is interesting how many businesses fail to keep even basic accounts, let alone use the information to manage. Would you buy a business which cannot even produce management accounts. Retain profit as well as enjoy the rewards, but make sure you do both.
- Plan – plan for success. Anticipating issues and problems, and solving many before they even appear is half the battle. Successful businesses plan.
- Be clear on what differentiates your business; why are you successful. Know this and you open the way to a much bigger future.
- Think profit not sales.
Successful growth, sustained profitability, efficient systems, access to information, effective and well trained team.