Monthly Archives: November 2017

Struggling Business Fail to Spend Money on These 3 Things

There are characteristics of successful business and also for struggling businesses. It is almost as if they do the exact opposite of each other. Three areas that struggling business owners tend to ignore because they see them as costs instead of improvements to support and grow their business are technology, people, and infrastructure/equipment. Let’s take a look at each to see the importance of each one.

Technology: Technology can help an organize with scheduling activities, taking orders, processing information, performing work, communicating with customers, collecting customer payments, financial activities and reporting, and assisting with an unlimited number of tasks. Technology must be implemented and used properly for a business to see a return on its investment. Additionally, it can take some time to get it up and running before you start reaping the benefits.

People: People are the life of an organization. Making sure that you have the right people will help your business run smoothly. Don’t be afraid to hire and train people to support the growth of your business, but you must make sure that they have the right resources, training and direction so that they can succeed. Can you imagine how a business can be transformed if it just hires one sales person that brings in 10 times the cost of their salary?

Infrastructure/Equipment: Have you ever been to a restaurant that looked like it hasn’t been updated since the 1970’s? It starts to lose its appeal and then the disturbing thought of what the kitchen must look like comes to mind. Have you noticed that franchises tend to be updated more often (generally they are required to), and their success rates far outpace non-franchised restaurants? The same can be said for equipment that can help virtually any industry to serve their customers better.

When a business ignores these investments they tend to suffer and their profitability goes way down, eventually leading to the demise of their business. The wise business owner will count the costs before making these investments and predict how the business will benefit. The struggling business will just see costs and never invest anything.

The Overlooked Business Asset

What is the most important asset of a business? Here are a few choices:

  1. Customers
  2. Employees
  3. Technology

They are all important, but there is one missing element. Relationships. Strong relationships are what make a business successful. It’s not a new concept and it’s been around since business started. Let’s look at each one:

Employees: Most employees do not just want a job, but a place that they enjoy working at. Strong relationships start with appreciation and gratitude for your employees and a team-based approach. When you have great relationships with your employees then productivity increases, loyalty forms, and customer service is improved.

Customers: Every business should strive for strong, lifetime relationships with their customers. However, this means that you should do business with people that you enjoy doing business with. As a byproduct, strong relationships foster win-win results, including an increase of business activity, loyalty, and referrals from friends and family.

Technology: Technology can help to foster relationships by keeping you more connected with your employees and customers and making their experience more enjoyable.

Based upon anecdotal evidence and especially the thoughts of business gurus, the concept of relationships seems to be very true. Also, what greatly impacts a business and is overlooked even more is the condition of our personal relationships. Look around and see for yourself.

One caveat. Do not form vain relationships with people just because of what they can do for you or from a view of utility, but rather as an act of charity.