We have had the privilege of working with a range of companies who have been remarkably successful and, as such, we are often asked about what common factors and management traits are evident in these organisations.
There are countless books and theories which discuss these topics, some good some bad. The reality is that with such diverse industries and markets it is really hard to pin point common factors.
Often when you talk to successful business owners they laugh off their achievements and put it down to hard work or luck, but from what I have seen you can boil it down to certain criteria that always seem to be present. I have defined the criteria below, they are in no particular order but will give you a sense of what we come across:
- Keeping in touch with the latest Innovation. Innovation is fundamental and is about more than just bringing new and improved products and services to market. It’s about finding new ways to increase the efficiency of your business and, most importantly, improve its profitability.
- Vision and Charismatic Leadership – Good leadership is always present in successful businesses. Leaders know what they want to achieve and can energise a team towards those goals. They care, they care about their brand, their customers and importantly their people.
- Sound Financial Management – Your financial management responsibilities affect all aspects of your business, therefore this area is integral to successful businesses. Great businesses have a clear financial strategy which is supported by a dashboard that shows all their financial KPIs in one place, for each KPI it will show where they are, where they have been and where they will be in the future.
- The ability to package a product or service that disrupts traditional markets. We are seeing this more and more now – and there are lots of examples that have hit the media lately. You will have seen innovative companies like UBER who operate taxis but don’t own any taxis, airbnb who operate hotels but don’t own any hotels. These are traditional markets which are being shaken up by disruptive players who bring a completely different business model to often stagnating sectors and industries.
- Everyone Sells – This can be a bit cliché but comes down to the notion that people buy from people. Regardless of the role that you perform or your job title, people form opinions about those they meet in an organisation. Positive or negative those opinions count and will often be the difference between customers buying or walking away.
At your finance team we can help you put in place a proper financial management strategy to help you grow your business and achieve your financial goals