As an entrepreneur for over 30 years, I have witnessed first-hand the devastating effects that the lack of applying the “foundational principles of business” can have on any business. After observing several dozen people in my network start businesses, I am convinced that the primary reason that businesses fail, is business owners have limited or nonexistent business training. It’s not their fault, since there is really no place to get this training for Chiropractors. Worst of all, many chiropractors believe that learning marketing and business management is business training; when in fact, it comprises a small component.
I am not saying that knowing marketing and management isn’t important. I am saying, however, that without proper business training on all 12 of the foundational principles, then creating a successful business will be more difficult. I believe that the non-adoption of these principles is the main thing that is holding entrepreneurs back. Just like staying healthy is based on foundational principles of health; so it is for business.
Here is a foundational principle to ponder. One of the first things a business person needs to learn and apply is the concept of creating a compelling “Catalyzing StatementTM” for their business. A Catalyzing Statement is a next-generation Purpose Statement, which I refer to as Purpose 2.0.
By way of example, JFK did not say that the space program’s purpose was to create the world’s best space program and beat the Soviets; he instead changed the world by declaring his now famous Catalyzing Statement: “We will send a man to the moon and return him safely to Earth by the end of the decade of the 60s.” These words changed the world by catalyzing the action of hundreds of thousands of people.
I’ve learned, first hand, that every entrepreneur has the same opportunity to stop what they are doing for a moment, and create a compelling Catalyzing Statement that will forever change their business from the perspective of impact, success, leverage, and reach.
Why does your business exist? Why should someone use your business? Why should anyone work for you? These are questions that MUST be carefully thought through. These are questions that could be answered more easily if you have a compelling Catalyzing Statement in place.
Now, the big question: What is your Catalyzing Statement?
I believe that creating a powerful Catalyzing Statement in only the first step on the journey toward becoming a more successful and principled business person; but, as you can see, it is an important step.
What are some other Foundational Principles of Business? Here are some of very basic ones, that can be transformative to your business. Values–Based-Decision–Making says that when all decisions in your business, from whom you hire, to what products you sell, to where you locate your offices, are made from the same common set of long-term enforced values, you substantially increase your business’s viability, while eliminating the vast majority of business-debilitating mistakes. I’ve seen businesses double in size by effectively implementing only this one basic principle.
Next, we’ll consider the age-old principle of Management-by-Objectives. Many times, small businesses stall because they are trying to do TOO MUCH. They falter due to indigestion from trying to digest too many opportunities. Imagine that your business only focuses on FIVE objectives during the next quarter. Imagine that all of your employees are fully informed of exactly what those five objectives are, and that they are all bonused on the successful achievement of those FIVE.
Want to take your staff to the next level of production, and supercharge your business? After you’ve communicated your FIVE business objectives; then meet with each staff person individually, and assign them each their own FIVE quarterly objectives, that fully align with your business’s FIVE objectives. Then pay them a bonus upon achieving these. This very simple business can create full employee engagement in your business.
Hopefully these examples give you enough evidence to focus on learning and applying foundational business principles in order to turbo-charge you business.
Rick Sapio also recently sat down with Phil Romano, Founder of Macaroni Grill. He would love to give COD members the opportunity to “peek in” on this conversation and learn more about the Billionaire Mind and how to implement it in your life., please CLICK HERE or the picture below for access to this free video.
Rick Sapio has been involved in more than 100 companies, as either a founder, investor, owner, or operator, over the past 30 years. Rick has realized that by using a principle-centered business approach, one can radically increase the success of virtually any business. For the past 22 years, he has been CEO of a financial services/healthcare holding company. Go to www.BusinessFinishingSchool.com to learn more about his 12 Foundational Principles of Business.