Table of Contents
Business success is a result of working regularly in the following seven key areas to achieve better results. If you look closely, all the successful businesses habitually put continuous focus on these areas for business success and profitability. (Excerpt is from ‘Million Dollar Habits’ by Brian Tracy)
“Success usually comes to those who are too busy to be looking for it.” – Henry David Thoreau
Productivity (#1)
The first key result area or habit for business success that you need to develop is the habit of thinking continually in terms of increasing productivity. The goal of strategic planning is to “increase return on equity.” It is to increase the financial results and outputs relative to the costs and inputs involved. It is to get more sales, revenues, and profits out of the business than are currently being achieved.
All successful business people think continually in terms of increasing productivity. They look for ways to do more with less, to get more at a lower cost. Even in times of economic growth and prosperity, they are continually looking for ways to get better results at lower costs.
Look at what you are doing today. How could you increase the productivity, performance, and output of yourself and your business? What could you start doing that you are not doing today? What could you stop doing altogether? The answers to these questions can lead you to productivity breakthroughs that will dramatically improve your financial results.
Customer Satisfaction (#2)
The second key result area is the habit of thinking in terms of customer satisfaction all the time. The starting point of developing this habit is for you to be absolutely clear about how your customers define satisfaction. What must happen for your customers to be so happy with you that they buy again and tell their friends?
Domino’s Pizza is famous for having defined customer satisfaction as “speed.” Tom Monaghan, the founder of Domino’s Pizza, realized that when people ordered a pizza, they were already hungry. For them, the speed at which the pizza was delivered was more important than the relative quality of the food. With this single insight, Monaghan built a 13,000-unit pizza empire that extends around the world. He retired with a personal fortune of $1 billion. How do your customers define satisfaction?
Profitability (#3)
The third habit you need to develop for business success is the habit of thinking in terms of profitability all the time. Many businesses focus too much on the top line, on gross sales, rather than on the bottom line, on net profits. As Baron de Rothschild, in his Maxims for Success, said, “Always concentrate on net profits.”
You should analyze each of your products, services, markets, and customers to determine exactly how profitable they are. Many companies today find that their largest customers, because of high servicing costs and discounts, are not particularly profitable to them at all. Many companies are finding that certain products and services they sell in large volume are not profitable because many hidden costs are involved. These companies find they are only breaking even, or even losing money, on their bestselling products or services.
What are your most profitable products, services, and markets? Who are your most profitable customers? What products, services, markets, or customers should you emphasize or de-emphasize? Always think in terms of the bottom line, of the dollar-for-dollar profitability of each one of your business activities.
Quality (#4)
The fourth key result area is the habit of thinking in terms of quality all the time. Customers only buy a product or service because they feel it is of higher quality in some way than that of competitive offerings. How do your customers define quality? What qualities or attributes of what you sell cause them to buy from you? What quality elements do they see in your competitors?
One of your most important activities should be regular customer interaction, asking your customers why they buy from you and how you could improve your quality and service to them. Practice the CANEI (Continuous And Never Ending Improvement) method. Remember, whatever got you to where you are today is not enough to keep you there. Whatever you are doing today, and however well you are doing it, you will have to do it considerably better a year from now if you still want to be in business.
The most important goal you can set for yourself and your business is to “be the best” in some area that is important to your customers. This is not only the key to increased sales and profitability but also the key to motivation and commitment among your employees. Everyone likes to be part of an organization that is committed to winning, to excellence, and serving customers better than anyone else.
Employees (#5)
The fifth key result area for business success is the habit of thinking in terms of people building. In business today, your primary assets walk out the door after office hours. Out of all assets, only people can be made to appreciate in value when time and training are invested in them. Your people are everything. All productivity comes from them; there is no other source. All profitability comes from your people. All sales and fulfillment come from your people. Your ability to select them and then to motivate and inspire them is essential for your success.
Develop the habit of spending time with the most important people in your business. Ask them for their opinions. Compliment them on their accomplishments. Take them out for coffee or lunch. Make them feel important and valuable. Remember, the very best companies have the very best people. And these people are invariably the ones who are the happiest because of the way they are treated by others, especially by their bosses.
Organizational Development (#6)
The sixth habit you can develop is the habit of organizational development. This habit requires that you continually look for ways to organize and reorganize your business so that it functions more efficiently and effectively. You continually move people around to ensure the job gets done better, faster, and with less friction or interruption.
In the past, if a company announced that it was going through a “major reorganization,” it would be a sign that there were serious problems in that company. Today, however, with the rate of rapid change in the business world around you, you and your company should be in a state of continuous reorganization. Every day, week, and month, you should be thinking about how you can deploy and redeploy people and resources to ensure the highest level of productivity, performance, and output.
You should develop the habit of not only learning and growing continuously yourself but also thinking in terms of training and learning experiences for the key members of your staff. Sometimes, one additional skill is all a person needs to dramatically improve his productivity and contribution to the organization.
Innovation (#7)
The seventh habit you can develop is the habit of continuous innovation for business success. You should encourage everyone to be thinking creatively all the time. One way to encourage creativity is to ask each employee to bring an idea to each weekly staff meeting. When someone comes up with a great idea, lead the group in applause. Thank and congratulate the person.
You should have a company suggestion box. Offer a financial prize each week for the best idea to increase sales or cut costs. It doesn’t have to be very large to motivate people to think creatively all the time.
Announce the award for the best idea at the weekly staff meeting. Hand it out and congratulate the person. You will be absolutely amazed at how many good ideas your people will come up with when they are encouraged and rewarded for thinking creatively.
The most important area for continuous innovation is your products and services. Remember, fully 80 percent of products and services being sold today will be obsolete within five years. You must continue to develop and produce product and service innovations as a regular part of your business activities. If you don’t, your competitors will. One major innovation by a determined competitor can put you out of business. Be a leader, not a follower.
The Wealth Code: Volume 1 is a personal development and financial education book written by Vinod Singh. It is designed to empower readers by teaching them principles of wealth creation, financial freedom, and personal growth. The book offers practical strategies to achieve financial success, with a vision to uplift and transform the lives of millions by promoting financial literacy and entrepreneurial thinking. Singh’s approach is rooted in inspiring individuals to take control of their financial destinies while cultivating a mindset focused on long-term success and abundance.
