I regularly speak to business owners who find themselves in the trap of trying to do too much and not allowing their employees to help them. However the failure of the owner to get out of the way and to empower their team is a huge barrier to growth. Too many owners feel that it is their responsibility to personally take care of everything, normally because “I can do it better” than anyone else. Unfortunately all that this approach provides is the guarantee that you will probably be the busiest and least paid (on an hourly basis) employee in your business!
The problem occurs because many owners believe that they are responsible for taking care of their team, their customers, and their business all on their own…..and not necessarily in that order. The most effective way to grow your business profitably is to adhere to the Cycle of Business: Owner > Team > Customer > Business > Owner. This effectively means that the owner takes care of the team, enabling the team to take care of the customers, which leads the customers to take care of the business (with repeat orders and referrals), which results in the business rewarding the owner with profits and success. Let’s look at these four steps.
As the owner your primary responsibility is to your team. You need to hire the best people, provide them with the tools to perform their job, and train them how to use the tools properly to service your customers. The types of tools you should provide include: Vision and Mission, Company Culture, Goals, Job Descriptions, Processes and Procedures, Communication Channels, and Services and Products that your target markets want. In addition to tools, your team also need you to be their leader and recognise their needs and successes.
Armed with the proper tools, your team can now take care of your customers. This means providing them with high quality, responsive service and delivering your products and services with consistency every time. Winning teams exhibit leadership qualities, share common goals, know who is responsible for doing what, support and include each other. Successful teams listen to customers problems and identify solutions before they are asked.
When customers are treated well, receive prompt courteous service, and consistent high quality products that solve their problems, they come back again and again, and they tell their friends. When your team solves a customer’s problems, your customers reward you with loyalty. Loyal customers can then be involved in helping you to grow your business successfully by giving you critical feedback on how you can help them even more, and opportunities for new business that you might never have had otherwise. When your customers are well cared for, they take care of you and your business so that you can remain in business to help them.
Now that you have provided your team with the tools and leadership that they need, they are able to invest their time in caring for your customers. Happy customers come back again and again, and tell their friends about your services. Repeat business, happy “A” customers, and endless referrals are the foundation for profitability. When your business is running this way, you have the financial rewards for yourself, your family, your team and your business. You are able to reinvest in the team and tools to improve their abilities, to increase your capacity, and to grow your ability to solve the needs of your customer base.
Where are YOU are in the cycle of business?