All companies, regardless of size, have a few critical functions that they have to implement to create success. Let’s take a look at 6 parts of your SPF Business, along with the purpose and processes of each, in a little map called The Business Bullseye.
Product or Service
Most business owners start their business because of their product or service. They have specialized knowledge or skills and decide to go into business for themselves focusing on operations. And their talent is good, because the first rule of operations is to WOW your customers and give them an excellent experience, so they become repeat buyers and send you referrals. But, no matter how good they are at what they do, they do not get to do it until they have customers. Furthermore, many of these business owners end up being an employee of their business. This is okay and often expected, in the beginning, but it should not be the end goal for an owner to be merely self-employed.
Marketing
Before a business gets to deliver their product or service, they have to find customers. And for most businesses this starts with the basic process of marketing, or taking people from not knowing who you are and what you do, to knowing. This can sometimes be an awakening for a business owner, to realize that he is really in the business of attraction and needs to identify his ideal customer. Where do they hang out, where do they find information, what are their pains, challenges, motivation, goals, aspirations, etc., and what messages will engage them and get them to act.
Sales
Once the business generates interest, for example from an advertisement, a presentation or a trade show, there must be a simple conversion process that takes the prospect step by step through the sales cycle. The goal here is getting the prospect to a yes; and the best salesmen take their prospects on a journey, through several key phases:
- Know, Like & Trust
- Asking Questions to Identify Their Problem
- Proposing a Solution to their Problem
- Offering a clear and concise Call to Action
Every business has to develop their own sales process given their available resources, but if you include these components and master these methods, you will increase your closings and generate more business.
Remember, if you understand your prospect’s situation and perceived problem and can get them to trust you at 100% before stating your call to action, and asking for their business, you will complete the transaction much more often than if they only trust you at 50%.
Administrative
With your marketing efforts producing more and more prospects, your sales efforts moving them through your perfect sales process and then delivering and amazing them with your product or service, you are on your way to creating a thriving, successful business. All other functions are part of administrative – finance, accounting, legal, etc., so this is where you take care of your bills, keep your lights on and your doors open. It is critically important to have good people on your side in these areas, it will save you time and money in the long run.
General Manager
The general manager oversees all functions of the business and reports to the owner. Tracking the sales and marketing numbers – incoming contacts, qualified leads, quotes/sales presentations and closed sales. Managing the production, output and delivery of your product or service, including material cost, labor, waste, production schedule and logistics. And, overseeing the administrative tasks and responsibilities to make sure the company continues to operate and is growing. Often, the general manager role is filled by the owner in the beginning and it is up to him to develop and create processes to automate and systematize the business, so he can replace himself in the future, when he is ready.
Owner
Owners keep the general manager on track, benefit from the success of the company in the form of profits, this is their reward for taking the risk, and they have to course correct when the business falters. If an owner approaches the creation of their business with the end in mind, they can develop and create simple systems and processes that operate without them, so that when the time is right, they no longer have to work in the business and can still have an income stream from the business.
When most owners start their business, they are involved in all aspects of the organization often being the key employee making decisions for the entire entity; sometimes creating a bottleneck. If they are out of commission, or otherwise unavailable, these businesses may come to a screeching halt if others are not empowered with systems and processes to make decisions. An owner has the prerogative to employ themselves and work in the business for as long as they want to, but if this is his goal, then he is merely self-employed and down the road he may discover that the business owns him and not the other way around. However, the keen owner has a goal of developing a business that can run without his or her involvement on a daily basis and he can benefit from the profits generated by the systems he has in place, whether or not he is physically involved, this is the essence of leverage and residual income and how many successful entrepreneurs have created their lifestyles.
These 6 parts of your SPF Business serve critical functions and have to work together like a finely tuned machine to get optimum results.
