3 Things you didn’t know to make your small business into an Empire
I start by saying that I am not a writer, expect bad form on my part and be patient. Whether you like my presentation style or not is irrelevant, the real proof is in results. Follow these three things and then tell me if if worked.
#1 Every business must be built to sell itself. Every mom and pop shop starts with big dreams and light pockets. Those who survive the first few months to a year can show some money. Biggest problem at that time is sales. In fact, it is all about Sales. But no one thinks about their new business as a product, yet all businesses are products. This is a mistake, a big one! Down the road such “entrepreneurs” run into the trouble of becoming worse than regular employees, completely incapable of taking a break from their business. They didn’t set it up right. A business that is well set up for sale does not depend on any one person, ever. Those that do command a fraction of the price and often sell with the concept of original owner staying on for a few years to “transition”.
#2 Fire genius-jerk employees. Small business owners are not just owners, they are the cleaners before opening and after closing, they are the bookkeepers, sales people, human resources and just about every other role they cannot afford to hire. They play those roles because they have to and it is tiring, oh so tiring. After a while they find this one person who is a genius and can play many roles, is reliable and trustworthy. That person is a life saver to the owner but is toxic to colleagues. Fire him. No business ever grew to a billion dollar empire by having one genius, process matters more.
Side-note on process: every business is combination of Sales and Operations. Two often fight on who is more important, without sales we don’t need operations. Without execution no amount of sales will make you profitable. This is why culture of a company (or put it another way, the ability to communicate well and work together) is far more important than just about anything else. Remember that every business comprises of a) finding prospects, b) converting them to your clients, c) producing the product/service for the clients.
This is why having a genius-jerk employee only feels right but is a kiss of death to your culture and ultimately to your company.
#3 Fire bad clients. Yes, I said it, fire some of your clients. There is simply no way to please everyone. There is never enough time to do everything, but there is always enough time to do the right things. Serve your best customers and they will make you more profits than you expect. Spend too much time on the needy and whiny and difficult customers and you will get more of the same types coming to you. Worse yet, when you spend all your time fighting fires with bad clients you run out of energy, enthusiasm and time to ensure that your great clients feel they get the attention they rightfully deserve. Remember the old Pareto principle — 80/20 rule? It holds here too, 80% of your profits will come from just 20% of your clients. You’d better pay attention and have the time for these guys, they and only they can make your small business into an empire.
