May 29, 2014- ISSN# 1545-2646
The business of running a business
If you show a person a store front and ask them what is the business about, they will most likely talk about the product or service the business offers/delivers into the marketplace. Their response is not wrong but there is a lot more going on than the end product.
Ask an employee about the business and they view it in terms of all the money the owner is making. They don’t always look at the cost of raw materials or utilities or benefits. They don’t factor in the cost of a vacation for an employee means having additional headcount (more expense) to make sure there is enough people to take care of the customer.
Years ago when I was working in the High Tech arena, the organization I was employed with was taking the business through the initial public offering (IPO) process. At a specific time it was required that the organization disclose the details of compensation and perks of the ownership/executives in the business. When this document was distributed to the employees and the general public it was very interesting the comments and responses it created. Some individuals were very upset that the owner (the person who had all the risk) was taking a certain amount of pay and benefits from the business. Some of them felt he should buy them a new computer or raise their salary. Other were surprised the owner was taking so little out of the business for if they were in that role they would have doubled their compensation.
This highlights just one of the dynamics that plays out on a daily basis behind the store front. Dealing with the gentle balance between taking care of the customer, taking care of the employees, taking care of the business and taking care of the business owner so the rest can be taken care of.
This week take a look at the business of running your business. Yes there are many distractions. Customers want this and employees want that etc. If you are trying to deal with each of these without some strategic approach then you are more than likely getting pulled in too many directions.
If you don’t have a set of defined standards – metrics which you manage by then each day you hope you guessed right again. I understand and appreciate that you do possess keen skills for making business judgments – that is why you are a business owner. On the other hand always relying on your instincts can and will get you into trouble.
Wondering what strategic approach you should have in place to grow your business? Give JKL Associates a call at (313) 527-7945.
Questions or comments – email us at partners@jklassociates.com or call our Office at (313) 527-7945
Copyright – JKL Associates 2014
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