Whether you are running a multi-billion dollar company or are an army of one, you need a solid foundation for your business. One of the only constants in life is change. Just like the seasons (Spring, Summer, Fall, Winter), there are seasons and cycles to economies. And just as our ancestors prepared for winter, it’s important to prepare your business for an economic winter.
The best companies not only survive but thrive in difficult economic times. Airbnb was started when its founders needed some extra cash at the start of the Great Recession. Slack, the messaging app ubiquitous in Fortune 100 companies, was also founded in the middle of a recession but quickly became the fastest-growing start-up in the world.
For business executives and entrepreneurs, these seven forces of business mastery will give you a solid foundation to weather the hard times and take your business to the next level in any economic environment.
Force #1: Know Where You Are and Where You Are Going with a Business MAP
The economic markets are changing too fast for a three to five-year business plan. You need a massive action plan, a MAP, to guide you and give you the flexibility of change.
A map will point you to where you want to go with your business, but first, you need to know where you are right now. This requires you to be brutally honest with yourself because if you aren’t clear about where you really are, you won’t end up where you want to be.
So, the first step is to ask yourself why you originally started your business. Why are you in it now? Are you still aligned with your original vision?
Next, ask yourself what business you are in. Sounds easy, right? But dig deeper—what business are you really in? Blockbuster thought it was in the “VHS/DVD rental business.” So, when it had the opportunity to purchase Netflix for a mere $50 million, it let the opportunity pass.
Only a few years later, Blockbuster went bankrupt. If Blockbuster had realized that they were actually in the entertainment business, they might have been agile enough to shift their business plan to give customers what they really wanted—the ability to easily watch movies at home.
The key to a solid business MAP is understanding your clients better than they know themselves and anticipating their needs. If you want to dig deeper and get more clarity on your industry and your personal business MAP, an executive coach for entrepreneurs can be a valuable resource.
Force #2: Embrace Strategic Innovation
The hallmark of wildly successful companies is their ability to constantly innovate. Make innovation a part of your business’s DNA. Don’t wait to make changes until you are forced to; use your business MAP to anticipate obstacles and generate ideas that help you prevent or overcome them.
Tie your innovations to what your customers really want and need. Innovations don’t have to be high-tech or sexy, but they do need to be compelling. Use data to get feedback on your products and customer behavior. When innovations are integrated with real feedback, the resulting sales growth can be exponential.
Force #3: World-Class Marketing
All the innovation in the world won’t help you if you can’t market your product or services effectively. And the key to exceptional marketing (and a world-class business) is simple.
“Deliver more value to your customers than anyone else in your market.”
Remember that it is your job to understand your ideal customer, anticipate their needs and add value that not only meets but exceeds their expectations. Figure out what sets you apart from everyone else in a crowded industry. What is your Unique Selling Proposition? Who are your best customers, and what value are you giving them?
Then, market what people really want. People might not realize it, but they aren’t usually buying products. They buy feelings, emotional states, meaning, status or community.
Consider the success of Nike. There are a lot of good athletic brands out there, but Nike has mastered the art of emotional branding—and it shows in their profits. They focus on tales of inspiration, overcoming obstacles and self-improvement with taglines like these:
“Just do it”
“We gave up giving up”
“Don’t believe you have to be like anybody to be somebody.”
Hone in on the feeling you are giving your customer and market that effectively. If you are struggling to figure out what your customers really value, ask your business coach for ideas on how to understand your market and ideal customer better.
Force #4: Extraordinary Sales Mastery Systems
Marketing makes customers want to do business with you, but sales is how you convert that interest into money.
Look at the business MAP you created in Force #1. Did you develop a plan for managing sales? Are you converting leads into tangible sales? Do you have an effective sales team? If any of your answers are no, it is time to make sales a top priority.
Whether you are a “solopreneur” or you have a robust sales team, the core elements of an extraordinary sales system are resilience in the face of rejection and warm relationship skills.
In the world of sales, rejection is inevitable. The people you have in sales must be confident enough to face rejection without getting discouraged. Your sales team must balance that confidence with enough humility to build quality relationships with potential clients. Too much ego can destroy a sales relationship.
Force #5: Regular Financial and Legal Analysis
Do you know exactly where your company is spending its money? Are you anticipating any potential legal challenges? While finances and compliance are not as fun or flashy as marketing and innovation, failure to keep tabs on legal and financial issues can have devastating consequences for your company.
The good news is that analysis is not as hard as you might think. The real boost to your business comes when you are anticipating instead of reacting.
Make sure you know how to read and interpret your financials. Review them regularly and focus on statistics that help you make intelligent decisions. Implement a process to effectively manage your costs.
Finally, employ legal expertise when you need it. While hiring an experienced attorney may cost you upfront, protecting you from lawsuits or regulatory challenges can save you dividends in the long run.
Force #6: Optimize and Maximize
Optimization and maximization are some of the most exciting business forces because they allow you to make massive gains without spending extra time or money.
Sometimes, the biggest growth opportunities don’t come from new initiatives or innovations but from executing your core business processes more efficiently. Small, incremental changes in key areas of your business can result in geometric growth for the company as a whole.
Force #7: Create a Raving Fan Culture
If you needed to focus on just one force that has the potential to create an immediate and monumental impact on the success of your company, it would be this:
You must understand, anticipate and consistently fulfill the deepest needs of your clients.
If you adopt this as your organization's core principle, you will have the power to dominate your competition because you will build a base of extremely loyal customers. The biggest mistake that most organizations make is that they fall in love with their product instead of their customers.
Chick-fil-A competes in a packed market of fast-food chains. While those chicken sandwiches are good, their products are not particularly groundbreaking. Yet they have a raving fan base of loyal customers who will go out of their way to drive to a restaurant, wait in long lines and pay full price for their food.
That is because leaders at the fast food chain understood that customers wanted more than just fried chicken. They wanted an unprecedented customer service experience, and Chick-fil-A delivers.
When you remember what business you are really in, when you put in the work to know and understand your customers better than they know themselves, and when you not only meet but anticipate their needs, you will be equipped to connect with customers at the deepest level. And your business success will reflect your efforts.
