Monthly Archives: August 2011

The 8 Traits Of Great Companies!

Earn More, Work Less, Live Life!

Good news! Now is the best time you’ll ever have to take a hard look at how your company does business. Why wait? When you start a company, you’re happy getting some work and making a little money. Then it grows into the company it is today by doing what it does relatively well for the few customers it has acquired. As an expert on entrepreneurial companies, I can tell you this is not the right way to design and build a great company that maximizes its’ potential market share, resources, people, and bottom-line profits.

When studying market-leading companies, you’ll find they have eight traits that make them stand out and stay at the top of their field. Make a list of top companies who are leaders in their marketplace. Your list might include: Apple, Caterpillar, Wal-Mart, Microsoft, McDonalds, Ritz Carlton, BMW, FedEx, Forbes, Star-Bucks, or Google. What sets them apart from the rest of their competitors and allows them to continually maintain market share, growth, and profitability?

Owning a company that offers the same basic services or products as most of your direct competitors will keep you busy during good economic times. But as the economy struggles or shrinks, business becomes more difficult, harder to grow, and make a profit. Especially when you offer almost exactly the same thing as most every other company you compete against. In order for your company to become the leader in your marketplace, you have to offer something unique or different than your competitors do. You also have to be passionate about your vision and where your company to go. You need organized systems and a professional management team that consistently delivers the same results for your customers every time. And you must be clearly focused on hitting your targets, goals and financial numbers. With these characteristics, your company will make an above average profit margin and have extra funds leftover to invest in wealth building opportunities.

IS YOUR COMPANY GREAT?
Take this True / False Test to determine if your company has the eight traits of great companies.

1. Our company has a written passionate vision that is prominently displayed for all of our customers and employees to see. Every manager and employee knows exactly what the company stands for, its’ values, and where it’s going.

2. Our company has written targets and goals for the overall operations, each department, and every project. These goals are tracked every month so adjustments can be made quickly.

3. Our company has a structured organizational chart clearly describing the accountabilities and responsibilities for each position in the company. Every employee knows exactly what they’re responsible to do and is fully accountable to make it happen.

4. Our company owners and managers are focused on achieving the numbers required for the company to hit its’ financial targets and goals. Our company makes a very large profit compared to the industry average and our competitors.

5. Our company has a unique or different delivery system, product, or service that attracts customers who will pay more to buy from our company than our competitors.

6. Our company has an ongoing, systemized, and pro-active sales and marketing program to find, contact, attract, retain, and service our customers. Our sales and marketing system has allowed our company to grow at least fifteen to twenty percent, or more per year.

7. Our company has written operational systems and procedures for all employees to follow that insure all workflow is completed in a similar standardized manner by all employees without exception.

8. Our company’s bottom-line delivers significant excess profits that allow us to seek investments and find opportunities to grow and build our equity and wealth. Continue reading

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Me, Myself and I

The best advice you can get is from outside, unbiased professionals who know your business, can give you real opinions of how to improve, and are not afraid of telling you the truth and hurting your feelings. I founded my commercial construction company in 1977. After only seven years in business, I had built up to 150 employees and we were doing $50,000,000 in annual sales. I thought I was doing great (and knew everything there was to know about business) for a young thirty-five year old. A friend suggested that a company board of directors could help me take my company to the next level. So, I asked five very successful businessmen to be on my advisory board of directors. At our first meeting, I proudly presented my goals, financials, and plans for the future. I then asked for their input. One by one they proceeded to rip me apart and ask questions I couldn’t answer.

Their laser-like questions included: 

 “Is that all the money you make for the risk you take?”
“Why are you only doing that type of work?”
“Why is your employee turn-over so high?”
“Why do you do so much of the work yourself?”
“Who else on your management team do you review the financials with?
“What is your plan to improve profitability?”
“What new customers and markets have you tried in the last year?”
“Why are you afraid to let go of major decisions?”
“Do you have a strategic business plan?”

These questions and many more made me feel really stupid and about two feet tall. I couldn’t answer any of them with good answers. I thought I had done fairly well building a company with me as the leader. But my inner circle and executive management team consisted of just me, myself, and I. And, I had obviously missed the boat on many major issues required to become VERY successful and VERY profitable. Does this scenario sound familiar to you? Are you alone making most of your strategic decisions. Do you continue to do business the same way and expect better results if you work a little harder?

Get some help!
My advisory board recommended I hire a professional management consultant and coach who specialized in helping construction business owners grow and make a profit. They also recommended I quickly work with the coach and my management team to draft a strategic business plan before I made another dumb decision. After several days of mourning and shock from the reality of the board meeting, I took the advice and decided to invest in the future of my company and get some help. I hired a construction business management consultant and coach who helped me look at my leadership style to become a better leader and analyzed our management team to determine who were valuable assets to our long term growth. He also reviewed and improved our overall operational systems, standards, and procedures to help us get organized, systemized, and more in control.  In addition, he reviewed our numbers and give us advice on how to make more money. After getting to know our company, he then did a great job at facilitating our two day strategic business planning workshop. I could have never made the moves and changes I needed to make without the help, advice, and pushing of an outside person who had no agenda except to make me and our company better.

Think about some of the steps you can begin to take to improve your business.