Every businessman must improve his business every once in a while to succeed. To succeed you need to focus in every point your working at, because if you focus just in the “important” things and don’t pay attention to every aspect, even though it doesn’t seem important, the chances to make mistakes are big. You must also have a clear vision of your goal, which serves as a basis for making daily decisions. If you do not adhere to your priorities, your entire strategy runs the risk of falling apart.
These five “golden” priorities should become your business foundation, you need to follow this rules to help the success of your business.
Innovation should become your number one priority. This quality is the one that has more weight in the beginning of your business career, during the phase of brainstorming and planning. The vanguard must be at the forefront of all your business development; Without it, there is nothing that distinguishes you from competing companies. Innovation does not imply creating a completely new idea; It may mean taking an old model and updating it for a new environment, or combining two previously independent ideas.
Innovation must take precedence over convenience. If you can choose between abandoning what makes you unique or moving forward by taking a greater risk, go for the risk.
Many entrepreneurs enter the game with monetary objectives, and there is nothing wrong with that. But, on the way, some lose sight of the importance of making a profit in order to grow their business. They are the ones who channel all their income towards the purchase of new equipment or the hiring of personnel, focusing on growth instead of sustainability. In some cases, this bet may work … but it’s usually a bad business strategy.
Even if you started your business for non-monetary reasons, profitability remains vitally important; Without profits, you will be unable to improve the business, maintain yourself or invest in your own future . Choosing to have losses in the short term could be a necessary sacrifice, but in a broader perspective, you should never stop focusing on profitability if you want to succeed.
Cash flow should be the financial priority of your business. In a nutshell, the cash flow is the amount of money you currently have and how that money will change in the near future. For example, you could have 10 thousand pesos in the bank, but expect to pay an invoice for 15 thousand, and wait for a check payment of 20 thousand. Knowing how to manage your cash is vital to ensure that all accounts are settled on time. The fact that your business leaves profits does not mean that you are free of debt . Many businesses have run out of cash and have closed, although they have seemed profitable on paper.
Manage your money flow tightly by dedicating at least one person to monitor it. Think critically about your cash before making any important financial decisions , and implement provisional measures to help you maintain it. For example, you can delay bill payments until the last day, and ask for credit vouchers from your customers to avoid problems of non-payment.
The culture of your business is what will keep your team working hard. If it starts to decline, even if it is in favor of promising opportunities, you could alienate your core work force and end up with a discouraged crew that will not do its best to boost your business.
Let’s say you get a new client and you’re worried about how you’ll manage the work. Establishing a series of cultural changes, such as a stricter work schedule or more bureaucratic processes, will damage the morale of your company rather than make the processes more efficient. Think carefully about the cultural impact of your actions.
Last but not least, improvement should also be one of your top priorities. Businesses, customers and economies never stay the same for long, so you will need to work hard to adapt your company gradually to the new conditions. As you gain more experience as an entrepreneur, you will learn to make significant and constant improvements in your products, services, infrastructure, processes, brand positioning and marketing strategy . Only those who know how to adapt survive a landscape in constant evolution.
Remember: never sacrifice any of these priorities for correcting or pursuing a lesser objective. The most successful entrepreneurs of our time are those who maintain these priorities regardless of the circumstances. If you can do this and handle the chaos of day to day, you will have no problem paving your own way to the top.