1300 116 222THE THREE STABILISERS OF EVERY SUCCESSFUL BUSINESS AND THE ONE EVERYONE KEEPS IGNORING
THE THREE STABILISERS OF EVERY SUCCESSFUL BUSINESS AND THE ONE EVERYONE KEEPS IGNORING
You know how tripods work — as long as all three legs are on the ground, they can sit on virtually any terrain. But remove one of those legs and everything falls over. Good business is built on this principle, and all businesses need these three things to stand on:
- Operations
- Sales
- Administration
They’re the three stabilising legs of a successful business. If you’re any good at your business, you’ll have Operations and Sales covered, and you’ll be brilliant at one of them.
Operations
PEOPLE DON’T CARE HOW IT GETS DONE, JUST THAT IT GETS DONE AND IT’S DONE RIGHT
In a nutshell, Operations is managing the production of goods and services. It involves planning and coordinating the people, equipment, technology, information, and all other resources needed to create the thing your business is known for.
It’s the fashion designer creating couture from fabric and thread. It’s the logistics company timetabling cranes and trucks to go out to worksites. It’s the builder engaging architects, planners and contractors to bring a project together. It’s the textile manufacturer buying in raw materials, customizing orders, scheduling production and running and maintaining equipment. You get the picture.
If you’re good at Operations, you’ll be efficient in using as few resources as needed and effective in making the goods or providing the services your customers want.
It’s the core of your business.
Sales
MAKE IT EASY FOR CUSTOMERS TO GIVE YOU THEIR MONEY
Sales are the link between your business and your customers. It’s finding new customers and servicing your existing customers. Commercial business is driven by the profit generated by successful Sales.
It’s the time you spend building good relationships with your customers: the meetings, the phone calls, the thought behind your streamlined online payment system, troubleshooting when your customer has a problem.
Successful companies make an effort to get to know who their customers are and what those customers expect from their product or service. Any effort at improving the customer experience and is rewarded with loyal customers and ongoing sales.
Administration
HERE’S WHERE IT CAN ALL GO WRONG
“In simplest terms, business systems are about extracting the knowledge from between the business owner’s ears and making that knowledge readily available for the team to use.”
— Bruce Doyle, Business Advisor
The failure of a business is not as sudden as many tend to assume. Just as there is no such thing as overnight business success, there is no such thing as overnight business collapse.
Just about every business failure can be traced back to inadequate resources given to Administration. Administration determines the efficiency of your business system. It’s the essential ingredient that supports effective Operations and Sales management. The problem is, because Administration isn’t understood properly and is therefore undervalued, it’s usually compromised over the other two.
It’s possible to have a business that looks successful and is failing and not see it coming. Even the best of us falter at times, and it’s rare for people who are either exceptional at what their business does or brilliant at customer service to have also mastered the art of effective Administration. And in the running of day-to-day business, spotting financial problems and minimising damage can be easier said than done.
Every failing business sends out certain warning signs before an eventual collapse. If you’ve got someone watching, this disaster can be avoided by taking certain strategic measures. But if no-one’s watching, or you don’t know what you’re looking for, disaster seems to creep in suddenly.
Effective Administration resources mean you’ve got someone who can see if you’re heading for a managable bad patch or a real crisis.
Imagine if you could predict a downturn way before it happens. And know the corrective measures to take to insulate your business from loss. If you could know the profit on EVERY transaction, event or product. If you knew accurately how your business was performing throughout the year and were advised on effective strategies to minimise tax and maximise super advantages. If you knew what’s relevant to your business if laws change.
YOU’D BE A GIANT STEP AHEAD OF COMPETITORS THAT DON’T HAVE THIS ADVANTAGE.
There’s good reasons to take Administration seriously. Effective systems and procedures with an advanced database drive your business. Get the Administration right and watch the value of your business increase.
