The 3 Golden Business Rules

3 golden business rulesEvery business that wants to succeed needs to know these 3 golden business rules. You probably do know them already, and you may put them into action – though not necessarily consciously. Certainly if you come from a sales or buyer training background you will be well versed in them, but that’s not always (or even often) the case. So I’m going to explore them a bit.

It’s fair to say that most businesses want to expand or at least thrive at the level that they are working at. We don’t all want to grow into big business. Indeed many sole traders are very happy stay being a one man/woman band. However every business owner wants their business to succeed. Now success will mean different things to different people, however we all must be able to make ends meet at the very least. In order to do that, we must adapt to the ever changing environment around us. Standing still whilst everyone else moves forward means we are effectively going backwards, and that is unsustainable.

So what are these 3 golden business rules ?

Simple really. Always be looking to:

  • Increase your profits, or;

  • Cut your costs, or;

  • Improve your service/product.

The first 2 are fairly straight forward and sometimes go hand in hand, but don’t be fooled. If you focus on one, other or both of these at the expense of the third, whilst you may see a short term gain, you will likely suffer in the long run. Not to worry though. They are not mutually exclusive. Indeed quite the opposite.

baker in businessLet’s say you’re a baker. You sell buns, cakes, bread and other such yummy stuff. You sell several hundred pounds worth of product every day and you have a steady turnover. You don’t do anything special other than making good quality produce. You’re keen to increase your profit but not sure how to go about it. Well you could put your prices up. That’s pretty straight forward, but a little risky. What’s the critical point at which people stop buying? You could source cheaper ingredients, but would they compromise on your quality. Both of these carry a certain amount of risk. So what about improving your service? What can you do here?

The service you provide depends on all sorts of factors from the interaction you have with your customers in the shop, to the time you spend on doing your books, updating your website or cleaning up at the end of the day. The time you and your staff spend on the business, and the way that time is spent can make a huge difference without changing anything else. Do your staff smile and chat with customers and amongst themselves? Do you get time to spend on the shop floor or behind the scene building relationships? Are your systems slowing you down or saving you time?

Look at every aspect of your business and ask yourself, ‘Are we doing this the best way that we can in order to benefit the business?’

 

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