-The 9 Core Business Fundamentals
“The Key to Winning is Solid Fundamentals”
Jimmy Johnson – 2 time Superbowl winning coach
What are the
9 Core Business Fundamentals TM
and where did they come from?
Mr. Omer has worked all across the United States, in the Caribbean, Canada and in Scotland. His friends and family have experience working all across Europe, as well as both the Middle East and Far East. He was struck with both the similarities and differences of how businesses operate in different parts of the country and the world and started tracking what successful businesses do, no matter where they are headquartered.
The 9 Core Business Fundamentals TM are effective & ethical systems and processes that are used by successful businesses all over the world. When these systems and processes are in place and working in your business, it will run better, more effectively, with lower employee turnover and fewer headaches.
The 9 Core Business Fundamentals = Success
9
Last and most important of all of the core fundamentals is the 9th Fundamental – Leadership. Having all the other core fundamentals in place cannot overcome poor leadership.
Leadership for the 21st century must be forward focused, results driven and willing to work collaboratively with those who follow. A forward focused leader looks to the results he/she expects from the team. These leaders will define their goals in terms of the results they want and when they want them. They will allow (in fact encourage) their employees to develop the ways and means to reach those goals. There is a lot more to being an effective leader, but staying forward focused is critical. Good leadership is like the air we breathe, it gives us a clear head and the energy to work.
8
The Owner’s Personal Contribution to the business. As the owner of a business, you must juggle your personal time and the time and energy you give to the business. There are stress factors that go beyond just you to include your family and finances. To be an effective business owner, you must learn to balance the time you spend on the business and the time you spend in the business with your personal, financial and family requirements.
7
One of the single most important aspects of running a company is how you handle the Communication within and external to the organization. Many business owners believe that the most important aspect of communication is how they communicate to their customers and the ‘outside’ world. In fact, your most important communications are those that happen within the organization. They are what give your employees a clear understanding of where the organization is going and how each employee contributes to the success of the organization. Without clear internal communications the company will struggle to be effective.
6
Sales & Marketing is like food & water to a living organism. Without food & water, the organism dies – without sales, the organization dies. Understanding what makes your organization different from your competitors, being able to clearly and succinctly communicate that difference in a positive way, following up after the sale for service and referrals, having your sales people an integral part of the entire organization – not just operating on their own – all feed into the success of the organization.
5
If Sales and Marketing are like food & water to an organization, cash is like the blood. If you do not have solid Cost Controls in place you run the risk of bleeding to death. There are numerous ways that an organization can loose control of their cash flow. Your budget, the rate of expansion, controlling receivables, projecting budgets and establishing your cost/price models all contribute to cash flow. Having appropriate reports and key indicators established and in use will help control your costs.
4
Not paying the taxes you owe is tax evasion, it is illegal. Not paying any more than the law requires is Tax Avoidance, it is legal. To minimize your cost of doing business, you should also plan to minimize the taxes and fees you pay on your profits. Get a qualified accountant or tax attorney in your court as soon as possible so you can plan how you will avoid paying anything more than the law requires.
3
Most of us agree that some forms of insurance are necessary if we are going to be in business, but there are other kinds of Risk Management factors you need to be aware of. There are several ways to mitigate risk that most employers are not aware of. One is to distribute the operational risk (don’t leave one person in charge of too many things – it causes a bottleneck to the flow of the work).
2
Did you know your Organizational Structure is a critical factor to the success of your organization? By organizational structure, I mean more than if you have a ‘flat’ or ‘deep’ organizational chart. I am also talking about how you pay your employees, what kinds of incentive and reward programs you use. How your employees are held accountable and how they are recruited, trained and assigned their jobs and deliverables.
1
Finally (or first) on the list of the 9 Core Business Fundamentals is Strategic Planning. Your strategic plan is like a road map that will get you from where you are now to where you want to be. It takes into account not only your cash/sales goals, but also looks at your profit requirements, outside resources and the time frame you want to work with to accomplish your goals. Finally, the strategic plan recognizes that a culture of giving 110% only works for a short time. Burnout leaves everyone less effective and in the long run it will lead to the failure of the organization. Your strategic plan must be realistic as well as ambitious.
To learn more about the 9 Core Business Fundamentals TM and how well your organization uses them, give Eric Omer a call or Email him to set up a free 2 hour business evaluation.
Call or Email now:
720-494-1979 eric@rp2consulting.com