People, product, process...
__Profit!
One of my favorite shows on Kwesé TV is "The Profit." In it a wealthy entrepreneur called Marcus Lemonis goes around helping entrepreneurs to fix their businesses and make them bigger and more profitable. He invests his own money. By now you all know that a "profit" (in simple financial terms) is the money earned after you subtract all the costs of producing AND selling your product or service.
To make sure a business makes a "profit," there are three things Marcus always emphasizes:
People.
Product.
Process.
When a business fails, it's usually because one or more of the above have failed. When a business is a success, it is because all three ingredients are working well. It really is that simple...
We've gone over some of this before but let's remind ourselves briefly:
People
If you have skilled people who know what they're doing and are well motivated to deliver for the business with passion, that's central.
In the most successful companies in the world, they don't talk of people, they talk of talent. A successful organization must have "talent" in its ranks. The more "talent," the better it is.
Talent doesn't come from having a position, it comes from having skills. It's what you are trained to do.
Having a title of "General Manager," "Chairman," "CEO" or even "Minister" means nothing if you don't have any skills. You cannot operate above your skills simply because you have a title! It's remarkable how many people believe that a promotion to a top position somehow imbues them with skills they did not previously have.
Product
You may have a great team of talented people but that's meaningless unless you have (or your talented team develops) a product or service that customers want and are willing to pay for. It's not as straightforward as it might seem. What makes a good product? Packaging, pricing... (Your turn: what else?)
Process
Last but definitely not least, having the best #Talent and #Product will not be enough unless you have #Process (operational procedures) that enable you to (efficiently and effectively) raise money, build a business, manage cash flow, go to market, sell your product, listen to your customers, etc.
Process is what enables you to make profits! (And not just today, but going forward.)
On "The Profit" you'll find that most entrepreneurs are highly talented and have a great product but they're clueless about putting in place proper processes. Sometimes you will feel like crying when you see the anguish of some of these entrepreneurs as they fail to grasp the challenge of process. It's an amazing show and I urge you to see it even if you don't own a business.
Now if you study everything I've ever said on entrepreneurship, it really revolves around:
People.
Product.
Process.
To be honest, this applies to any organization, even if it's "not for profit." I could say it even applies to government administration (federal, national or local).
Now it's your turn: tell me about the "process" in business that you find most challenging and, how you're tackling it, if you are!
End.