Many small businesses are owned and operated by passionate people who have a clear and intuitive understanding of their industry. They are often experts carving out a niche in the market. Unfortunately, they rarely also possess specialized knowledge about how to run the many facets of the business aspect of business.
The sad truth is that without strategic planning, companies with great potential fail to make money and disappear. The key to strategy is fundamentally not in employing specific financial or research methods, but in understanding the premises of good business.
Follow the Golden Rule
Do to others what you would have them do to you, and do not do to others what you would not have them do to you. That is the essence of the golden rule. If you treat people with respect, fostering an environment where customers and employees can flourish, you will have dealt with the one fundamental problem encountered by most businesses.
Think back to a time when you worked for someone else. How were you treated? Were you happy? Did you feel a deep sense of loyalty toward the company? If you keep in mind that most people just want to feel appreciated, respected and valued and look for ways to make that happen you will be amazed at how successful you can become.
Build relationships with clients, employees and peers by following the golden rule. This creates an environment for building relationships, and relationships are the foundation of solid business.
Hire the Right People
As a company owner, you have the most to lose and the most to gain from your business. Resist the temptation to become a reactionary control freak. Sure, it is a scary prospect, but the best decision you can make is to hire the right person or people to run your company.
The first person to hire is a business strategy guru. If you are short on capital, look up your local business school. The University of Washington MBA program offers companies a student based consulting program at a rate unbeatable in the professional world.
For long term management you want a detail oriented manager who is passionate about the mission of the company, and has the vision and know-how to craft directives that work towards concrete fiscal goals. Choose someone with ambition because their drive will benefit your company.
Make Decisions Based on Analysis
Owners are ultimately responsible for the success or failure of their companies. With that in mind, make sure to establish a high-tech, ongoing database and reporting system. Together with your manager or team of managers, create a scientific method for analyzing data.
When you run into challenges meeting goals or when processes are not working, look not for the person to blame, but the underlying cause of the problem. If you have experienced professional managers, ask them to gather data, provide analysis and report on their findings.
Do not be afraid of change or of letting go of assumptions when confronted with valid evidence. Be willing to adapt and improve in order to survive. Creating solutions and making decisions based on well researched, well understood issues is crucial to building a stable company structure.
What Would Obama Do?
A simple example can sum up the main points here. Much has been said of the excellence of the campaign run by Barack Obama. The tight, structured and focused effort driven by a cohesive and loyal staff sets the standard for organizational framework.
Obama has a reputation for fairness which engenders loyalty. He has a knack for choosing the right people for the job. He often remarks on the need for study and analysis before giving an opinion on a topic. So in your company, just ask yourself, "What would Obama do?"
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