You've Got the Power. Six Principles for Business Success

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Have you ever wondered what makes some businesses succeed, whilst others do not? This is a question that I am sure many business leaders and owners have asked themselves over the years. I certainly have. In fact, this very topic led me to research and author my new book, ‘You’ve Got the Power. Six Principles for Business Success.’

Failing happens. In [1]2023, the statistic of start-ups that fail in one year was 90%, plus five years, 70%. Is it because of the sales approach? Is it because the product did not stack up? Is it because of poor leadership? Is it because of a bad business model? Is it because of recruiting the ‘wrong’ people?

Of the 10% of start-ups that succeed past 1 year, why do they succeed?

Is there a secret recipe for business success?

I am guessing there is not or if there was, every business owner would be following this magical formula ‘to the T.’ But there must be similarities across businesses that are successful we can learn from. There must be consistent themes, that if applied to a business will put them in good stead to win, to succeed.

When we look at successful businesses, there have been behemoths who have gone through periods of decline so severe that market observers predict their demise. However, they have returned to success due to a radical turnaround, and not only achieved growth, but tripled their turnover consistently for the next ten years. How did they do it? This surely needs to be explored further so we can learn and apply these critical elements of success to our own businesses.

What defines business success?

I should start by qualifying my meaning of ‘successful.’ The internet defines successful as ‘accomplishing a desired aim or result.’ When we talk about business, the goal is to make money. A famous economist, [2]Milton Friedman, declared in 1970 that it is a business’ social responsibility to increase its profits. According to this theory, the primary goal is to increase profits and maximise returns for its shareholders. Whilst money is a key output, is that the main reason your business exists?

Yes, shareholder value or increasing revenue year on year will always be a goal of any business. But should this drive towards increasing shareholder value and revenue be the primary focus?

?[1] My codeless website.com, Statistics on Start-ups, 2023

[2]Heart of Business, Hubert Joly

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Hubert Joly is a former CEO of a hugely successful business, Best Buy. He believed business is fundamentally about purpose, people, and human relationships. Having a thriving and profitable business was a result of being successful in each area.

There is a current trend in business about ‘being more human,’ one I wholeheartedly uphold. There are books currently in circulation investigating about how businesses should become more human. I encourage you to read them too. Joly certainly seems aligned to this concept and applied it during his tenure at the retail giant.

Simon Sinek, author and inspirational speaker on business leadership, purports that we should start with why. Why does the business exist? What is the business’ purpose? And how does it do business? When we look at businesses that have been through periods of difficulty and did not survive, I see businesses that had lost that purpose, that sense of why. Examples of this include Blockbuster, who failed to diversify and became obsolete. Or The Eastman Kodak company, who should have looked deeply at their purpose as times were changing however, they were not.

How do businesses turnaround from decline to success?

Let us look at businesses that were on a downward trend. Companies that market analysts predicted would demise, however, over a few years the trend was reversed with companies now in continued grow. These are the businesses I am interested in and want to learn from. They started like all businesses, a dream that was put into being by a single person or group of people, many starting in their founder’s garage! Those that grew to become successful, have experienced decline yet came out the other side, stronger.

Over the years I have seen businesses go from strength to strength and others ride the roller coaster of growth followed by stagnation and decline. What makes successful businesses, those that have totally transformed performance, different?

We may forget that Amazon, an online bookstore business that started in Jeff Bezos’ garage, at one time, was heading down a slippery slope. Investors thought the online bookstore was going to head south and fast, another victim of the dot.com boom. They were wrong. Amazon is now undoubtedly one of the biggest success stories of the past twenty years.

Hubert Joly turned the behemoth that is Best Buy, a technology retail business, around from almost certain descent into obsoletion; - returning to growth.

Apple Inc is often held up as an example of a company that totally pivoted from a significant downturn during the Steve Jobs interim period, when he first left the company, returning to growth with Jobs turnaround strategy.

Well, I have identified six simple principles that each of these (and more) businesses have in common. These principles have enabled them to become incredibly successful organisations.

The Six Principles for Business Success

The six consistent themes or as I am calling them, the ‘Six Principles for Business Success’ (see figure one) have been identified through my own extensive corporate experience over twenty five years coupled with research:

1.????? A Clear Company Purpose, with an Inspiring Vision

Think of your personal favourite brand or company. Does their vision speak to you and inspire you? Is their purpose clear and you understand how they will contribute positively to your life? Do their values align with yours? I am guessing you are saying ‘yes’ to each one.

2.????? A Robust Business Model and Plan for Success

When you first created your business, I am guessing you identified a business model that would suit your company type, products/services, pricing, organisation and partners. I imagine you also created a plan, a strategy that supported your model. But how do hugely successful businesses do this? What approach do they take which results in continued growth?

?3.????? Effective and Collaborative Leadership?

Having effective leadership in any organisation is essential and it does not sit with just one person. There are many examples of exemplary leadership but what specifically do they do that sets them and their businesses apart??

4.????? An Inclusive Culture Prioritising Employee Experience

?‘Culture eats strategy for breakfast.’ A phrase coined by Peter Drucker. The reason? Culture is an essential component when identifying what makes a business successful. Employees are one of businesses greatest assets. I dissect how important giving your employees a consistently exceptional experience is to achieve success.

5.????? Organisational Innovation, Adaptability, and Agility

If you experienced the COVID 19 pandemic, you may understand why this has made it in the top six. When we investigate companies that were on a path to demise, only to rise like a phoenix from the flame, agility, adaptability, and innovation have been evident.

6.????? A Company Focused on Enhancing Customer Experience

Last but by no means least, the customer, without whom you have no business. Alongside employees, they are one of your greatest assets. From being considered in critical decisions (reference to Amazon having an empty chair at all meetings to ensure they are always considered) to becoming a repeat customer that advocates your business.

In my latest book, ‘You’ve Got the Power. Six Principles of Business Success,’ I explore these principles at length, providing you with actionable insights enabling you to craft a roadmap tailored to your business needs against each of the pillars.

If you are a business owner or a leader in a business that is stuck, seeking inspiration, this book is for you. If you are simply interested in what makes businesses successful, this is also for you!

‘An engaging narrative woven with relatable case studies to inspire business leaders. An Amazon bestselling in four categories, this book will arm you with the knowledge, strategies, and inspiration needed to elevate your organization to new heights.’? You can buy it now on Amazon https://amzn.eu/d/0NIOhRZ.