60 Second Snippet #129 - Putting people before profit for long-term growth

Putting people before profit for long-term growth

When running an SME, there is a constant chase for profit and cash. Cash that allows you to invest in infrastructure, sales and marketing.

However, the race for profit can often overshadow what truly drives long-term success: the people.

Prioritising your team for the long-term over short-term financial gains isn’t just an act of goodwill, it’s a strategic move that should transform your business from the inside out.

A healthy, people-first culture is the foundation upon which thriving SMEs are built, and investing in your team can lead to better performance, innovation, and long-lasting profitability.

I regularly say that processes run the business and people run the processes. The people need to be value aligned, engaged and willing.

I have a client who has a brilliant team with a great culture.

Could she be in cheaper offices and spend less on training and development? Totally!

Are her team a fundamental part of helping her grow a respected brand in her space, helping her win and retain clients and allowing her to work fewer hours to allow family time and hobbies? Yes they are!

I covered succession planning and team appraisals recently. These are also key to team retention and attraction and should not be skipped.

At its core, an SME thrives on the collaboration and creativity of its team. Unlike larger corporations, SMEs often rely on smaller, more intimate teams, making each individual's contribution more significant. When employees feel valued, trusted, and supported, they are more engaged, motivated, and committed to the company’s success. This sense of ownership and camaraderie can translate into better customer service, innovative ideas being sought after, and higher-quality work.

Putting people before profit fosters a positive company culture where employees are not just working for a pay-cheque but are genuinely invested in the company’s success. Offering professional development, recognising achievements, and building a collaborative, inclusive environment are just a few ways to show your team that they are valued. In turn, this culture attracts top talent and retains key players who are essential for the growth of your business.

Of course, this isn’t about having a pool table, some nice plants, posh coffee and a great working space. That isn’t and doesn’t build culture.

This is about creating an environment where your team feel valued, can prosper and love being at work.

In the long run, businesses that prioritise people over profit often see higher levels of productivity, lower team turnover rates, and a stronger market reputation.

It’s a cycle: invest in your people, build a thriving culture, and watch your business grow sustainably. After all, when your team feels they are part of something meaningful, they are motivated to help the business succeed, and that leads to profits that last and that can be further invested.

Look after your people and they will look after your clients and your business. Short term investment, will deliver long term profit and cash.

Choose wisely. What do you need to do to correct the balance?

Gary

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