2014 State of the Business Owner Report
MONEY AND MEANING:
SOBO found that they could predict revenue and profits of a business from subjective factors, such as the degree to which an owner had (or was lacking) a feeling of control and happiness with their business. Engaged owners, getting these two needs met, had companies that performed better.
Best practices to help you gain greater meaning out of your business.
“Ownership Stack” – a tool kit for profitability with each component having a dramatic impact on the business: Written Values; Written Vision; Business Metrics; Written Marketing Plan; Ideal Customer Profile; Marketing Metrics; Employee Role Descriptions; Revenue Plan; Repeat Sales Plan.
“They are referred to as a ‘stack’ because there is no single magic bullet for truly taking ownership of your business,” says Raymond. “You must build a foundation first, knowing every brick you place in that foundation is helping you climb to new heights.”
If the small businessperson doesn’t get help on how to create their business vision, including a precise description on what it should look like, step by granular step, then he or she may become a small business statistic.
Each one of these nine tools had a dramatic impact on the business — implementing each one increased the odds of reaching your profit targets by 6.6%. And it doesn’t matter which one or in what order. We found a clear and predictable path for a business to follow to reach a higher degree of profit performance.
Small business experts encourage entrepreneurs to learn to love their financial statements. The gateway to making more money is through the pages of his or her company’s financials, i.e., the cash flow statement, profit and loss statement, and balance sheet.
If you understand your financial numbers, then you understand your business. Better yet, if you understand your financial numbers, you take control of your business.
Broken down, that means figuring out where your money comes from and where it’s going.