Building blocks of a success model for your Business
The advertise-account-measure triangle.
Every business small or large has to have a single goal of making profit. The reality of running a business has some tough truths. Owners have to do everything to get the clients into the door. Typically owners can internalise costs with their own skills and efforts. Say if one is a chef, then that part of the business gets internalised, the chef’s salary becomes the profit of the business so to say. Thus there is no real profit and no equity built into the business. The idea is to make the business a profitable one and move on to up scaling it. Three factors govern it … as in the diagram:
The failure to do any one of these make the triangle unstable or skewed. Measurement of performance is something that gets neglected.
‘Corporatisation’ of your Business
By this is literally meant the running of your business in exactly the same manner as big corporations. As a small business, the owner seldom has the benefit of a management team, an advisory board or a governing body/polices.
Usually one gores to their chartered accountant or lawyer to seek help about almost everything. They have nobody to turn to in times of need. Hence most depend on family or a partner which could work, but there is always a conflict of interest when someone dear or near to you is involved and soon you lose sight of objectivity.
Partnerships are prone to meet with little success. Mainly because they are mismatched or built around emotions. Partnerships can succeed if both parties put in a sweat and capital equity into the business. There has to be complementary skills.
Corporatisation of the small business
Corporatisation of your business simply means developing a support umbrella to help you manage your business from a process of review and remedy. It is having some one analyse and help you run your business to maximize profit.
Most business end up having the Advertising and Marketing, and Accounting aspects from independent contractors and they are left to coordinate and manage them without a review, just because they do not have time to manage it.
Here is the mantra: advertise-account-measure or perish!
For the measure part you need management and advice. Here are some of the services that are allied:
Advertising and marketing
Business strategy
Book publishing (not entirely but understanding the publishing world is knowing the distribution business)
Financial and accounting services
Project management
Retailing
Recruitment
[maxbutton id=”2″]