Archive for

Business Success Model – What You Need For Your Business to Thrive

In order for a business to be successful it needs three things: 1) a good product or service, 2) good marketing, and 3) good processes and management. I call this the Business Success Model™.

If any of these are weak, or worse, not present altogether, then the business struggles to survive and will not be able to move into Thrival. Many businesses, especially small businesses and start-ups, concentrate their time, energy, and resources on the first two “legs” of this model: product or service and marketing. They neglect the business management side of the equation.

The business management “leg” includes the infrastructure and systems of the business, the financial and accounting system, AND the personnel managing or running the business. All of these have to be established and functioning.

The attitudes of the management personnel have to be one of thriving before the business itself can thrive. This is especially important when the business is an entrepreneurship, a professional practice, or a small business. In these cases, the owner IS the business. Whatever is happening in their life has a direct impact on their business. They therefore, need to be doing personal development work to maintain their self-empowerment and to be in a position of strength for their business. This doesn’t preclude executives or other managers from this need. Their decisions and their life also affects the business where they work.

All business decisions effect the financial statements of the business. If the business doesn’t know how much and where the money comes from, what it costs to get it, how much it costs to be in business, and importantly, how much money it kept, the business can’t thrive. It is by understanding the financial statements the impact of business decisions can be seen.

I have seen many small businesses fail because they don’t understand their financial statements, not because they didn’t have a good idea or even good customers and marketing. (The financial statements and accounting are really for much more than paying taxes at the end of the year!)

The last portion of the Business Management “leg” is the infrastructure and systems of the business. To conduct business with efficiency, written policies, procedures, and forms need to be instituted. A solid framework of systems and policies holds up and supports the money producing activities of the business. As you can see, the Business Management “leg” of the model is essential to the Thrival of your business.