The 6 P’s of business building.
When it comes to building a real business that makes it, there are some pretty important items to check off the list. Oddly enough, the 6 most important start with the same letter. When I started on my own journey in late 2008, it was one google search that changed the game for me.
That day I asked google if it was a good idea to start a business during a recession. The articles that came up put a smile on my face, and goosebumps on my arms. It was go time.
Now that I’ve been through the process of building a multi million dollar business from the ground up, I wanted to share content that would hopefully bring the same results to others just getting started on their own journey.
It’s #1 for a reason. Building a business is probably one of the most stressful and difficult things you’ll ever put yourself through. The lows are extremely low, and the highs, well they don’t come very often in the first 5 years. You’ll sacrifice time away from your family, friends, hobbies, sleep, and anything other than the business. If your not truly passionate about what your building, it’s not going to work. Passion is what gets you out of bed at 5am, keeps you working till midnight, and pumps your veins full of the “hustle”. Good work ethic or not, passion will take over when exhaustion sets in. You’ve got to truly love what you do in order to succeed as an entrepreneur and business owner.
In the beginning, it’s tough. I asked 4 people to fund my startup before I found the right partner. This was only the first step in persistence. You have to be willing to show up and put in the work, day after day, month after month, and failure after failure. Many times folks give up on their dreams, and are only one or two more attempts away from achieving the next big goal in their journey. It’s these micro wins that keep you going, and each one will give you a little more energy to keep you going. Do not underestimate being persistent in everything you do.
Perfectly paired with persistence is #3 on the list. Patience is what separates you from the rest of the folks trying to enter the market. Most startups are so desperate for their first few sales, that they will do and say anything to get them. The problem is they are not deploying patience in their business decisions. Good things take time, and when you match your patience with speed, good things happen. When your building a real business thats going to make it through decades, you have to be willing to wait. The mindset of impatient business owners, often lead them down the path of failure. They rush their clients, their employees, and most importantly, their decisions. When you are more patient than your competition, IT WILL get noticed. Play the long game and you will win.
Cash flow is the oxygen of any business, and profit is the by product of a healthy business. The key to profit is practicality. By being practical, and executing your business by selling products or services that actually turn a profit, you’ll end up crushing the competition. So many companies are focused on the top line revenue numbers, that they forget who the boss is. Growth cost money, and that money will come from your net profits. Knowing your numbers becomes your #1 asset in business, now and forever. Profit puts you in a position where you can leverage your liquid assets for growth. Whether it’s new equipment, real estate, or an acquisition, cash is king when it comes to growth.
One of my favorite and most simple lines from Gary Vaynerchuk is People>Profit. At the end of the day, if your building something all time, something your kids will be proud of, you’ve got to put people first. You alone are not going to build an empire. You’ll need to assemble a team. The key is understanding what makes people want to work for you. It’s not always about money, or benefits, but more because people are naturally drawn to passionate leaders. Are you willing to sacrifice your profit to keep your people happy? It’s something that a lot of business owners overlook. It’s not just about being friendly, or treating people with respect, it’s truly understanding each individuals needs. Empathy and emotional intelligence play a massive role here. By understanding each persons needs, and being able to put yourself in their shoes, you connect with them in a manner that drives them to succeed with you, not for you.
Last but certainly not least, is Process. You can have a great idea, huge clients, and tons of revenue, but without process behind your business, failure is inevitable. I’ve been obsessed with process since the days of riding around with my dad in his plumbing truck. The beeper would go off in the first 10 minutes of the day, and we would spend the next 30 minutes finding change and a pay phone. It drove me nuts. Implementing technology, methods of procedure, and true processes behind the scenes of your company, are all parts of the formula for success.
There’s no guarantee that your idea, or startup will be successful. But what is guaranteed is that by implementing and understanding the 6 P’s of business, you are setting yourself up to win the long game.