Welcome to our guest blogger, Rick Arthur, CFO.
The Five P’s of Business Success
Have you ever watched the CNBC show The Profit with Marcus Lemonis? I believe all business owners would benefit from watching a few episodes – regardless of your own profit position.
In a nutshell, Marcus Lemonis is a highly successful business entrepreneur that identifies businesses that are desperate for cash and ripe for a turnaround. He puts his own money and time into transforming them into successful (i.e. profitable) businesses that make the business owner – and him – lots of money. So, what is his success formula? Very simply, it’s: Product + People + Process = Profit.
Let’s take a look at the 4 P’s for success, and the questions you might want to ask yourself as it relates to your business. Then, I’ll add another P that I believe is also necessary.
Product
Do you know who & where your customer is?
How is your product positioned?
Is this product priced to be profitable? Do you know your costs?
Do you have proof of concept – have you sold sufficient quantities to your market?
People
What skills and behaviors are required?
What are the primary job responsibilities for the position?
What is your hiring process?
What is fair pay for the position?
What is your on-boarding and training process?
Do you hire fast and fire slow? Or, hire slow and fire fast?
Process
Are your processes efficient and effective?
Who does what, when and how?
Do your processes produce optimal quality and quantity?
How do you measure each process? Do you benchmark?
Do you expect employees to think or just do it? Is the outcome clear?
Do your processes maximize time and minimize cost?
If you can identify the right products, hire and train the right people, and give them effective and efficient processes, the end result will always be profit.
Let me add a final P that will ensure the businesses’ success…. and that’s Planning! Without a clear idea of where you want to go and when you want to get there, your opportunities for success may be fleeting. Planning, specifically, strategic planning will provide you with a roadmap for long-term success.
A good strategic plan will help you prioritize and focus your precious time, giving you the ability to hone your attention on the critical matters involving your products and processes. A good strategic plan will also help you to stay focused on precious resources, including people and cash flow.
With a well-thought-out plan you can lead your team to new levels of success. And maybe, just maybe, we can find that most elusive of all Ps….Peace!
About Rick: Rick Arthur is a CFO whose professionalism is built on Financial Intelligence and 35 years in senior financial roles. Coupled with a CEO’s perspective and the experience of building his own $20 million company, he brings a unique depth of insight into business from the top down. Wired to get to know people, Rick works hand-in-hand with business owners of intentional, growth-oriented companies, solidifying relationships as an advisor and confidant to his clients. He leverages his experience to help business owners gain traction and stay laser-focused on the company’s vision, cash flow, and profitability – all while creating big picture solutions for strategic planning, growth, and sustainable success.
INDEPENDENT CONTRACTOR OF MONEY CONCEPTS INTERNATIONAL, INC.
Maestro Associates is an independent firm not affiliated with Money Concepts Capital Corp. All securities through Money Concepts Capital Corp. Member FINRA/SIPC.