Unlimited Profit Is Determined By An Organizations Ability To Acquire Knowledge That Can Be Measured
Business Failure: A Scary Possibility
As a business owner, you know the statistics. Only 4% of all businesses survive long term. That’s a hard fact to swallow. Yet most business owners are in denial about how the odds are stacked against them.
One million businesses are started each year and a staggering 80% of them close their doors within the first 10 years. Over 100,000 businesses go bankrupt every year. So, the odds are stacked against your business’ survival. Failure is a real and scary possibility.
Let’s Focus On How Not To Let You Fail, It’s All In The Profit
But that’s not what this article is about. This article is the first of several articles about how to assure that your business, not only survives, but thrives.
What you are about to discover are the strategies and tools that carve out a path to unlimited profits. Your success can be predictable and scalable when you follow the proven formula to optimize your business for ultimate success.
The formula is simply:
Productive People + Effective Systems = Unlimited Profit
Most business owners don’t understand the value of their people and the impact of leveraging processes to systemize their business functions.
Business leaders who embrace and activate this formula in their business, often discover that the result is a business that achieves its full potential to generate lasting income and value.
Why People ?
Most business owners believe that the most important things to focus on when running a business are their products or services. While these are important to the business activity, there must also be strategies and plans in place as well as documented processes.
In order to determine and document the best practices for all functions of the business, the business needs to have experts in all functional areas. The people that can envision the best methods and systems to achieve optimal results in each function are essential to your business.
In addition to your business function experts, your trained team is equally necessary to serve your customers, so that they are thrilled and loyal to your business. The biggest advantage any business can have is an educated and trained workforce.
What Are Processes ?
A process is an essential function within your business operations. It is a collection of tasks, procedures, and schedules that interact as a whole. By following your optimal processes for each business function, from sales to service, you can get a predictable result every time.
This predictability is only possible when your optimal processes are carefully and meticulously documented, so that they can be easily replicated.
When you combine a well-trained team with your documented processes, you give your organization the opportunity to maximize productivity. You also have a mechanism in place to streamline your processes and recognize potential problems, so you can create solutions before a problem occurs.
10 Typical Mistakes Business Owners Make
A startling 90%, or more, of businesses that fail have neglected to develop processes in 10 key problem areas. These include:
- Not developing sales fast enough
- Not reducing costs enough
- Not recruiting trainable, quality people
- Being unable to increase productivity
- Becoming overwhelmed with day-to-day business decisions
- Unable to get work done fast enough
- Unable to increase cash flow adequately to meet debt demand
- Not knowing the source of their problems
- Unable to reduce prices or increase value in order to increase gross profit
- Not creating a business growth plan – resulting in the inability to prove predictable profit increases into the future. Without this proof plan, it is impossible to sell a business or create a business that will be a sound residual income producing asset in the future.
The key is for you to understand that if your business is experiencing any one of these 10 problems, your business will eventually fail. Experiencing two to three of these problems can cause your business to fail in less than a year.
But more importantly, if you commit to developing and documenting a process for these essential business functions, the reward isn’t just survival. You’ll put your business on the path to unlimited profit.
How To Find Unlimited Profit
How can you position your business to prevent failure and yield unlimited profit? The way to make more money is by investing in your business. A successful business must continually increase its long-term value creation in order to reduce the risk of failure.
The company that manages to grow successfully is constantly reinvesting time and money into the processes and people that define the company, in order to get the greatest return on their investment.
Your Business Is An Investment, It Should Be Your Best Investment…
Your business is your best investment, as it should be. By investing more into making your business a well-oiled and fine-tuned operation, you’ll increase your profit, cash flow, and net worth over the long haul.
This is the path to unlimited profits to essentially transform your business into a thriving enterprise that could significantly multiply your business valuation.
- Is your business, your family legacy?
- Is it your path to a comfortable retirement income?
- Or are you just planning to build more value, so that your business yields a greater return when you plan to sell?
No matter what your vision is for the future of your business, the following 10 steps will not only help you correct the issues that could eventually kill your business, but will show you how to make the changes that can yield scalable and unlimited profit.
More Unlimited Profit Articles Coming Soon
Look for then upcoming posts that will walk you through 10 questions that will guide you through the issues and strategies you will need to consider, so your business can achieve its true profit potential.
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