- Financial Growth
While one of the core reasons for the existence of a business is profits, the way a business plans to achieve this should be driven by the purpose. Getting to the root cause and getting to the purpose of each action, can help the growth of the business. Similarly, challenging the business processes can also help achieve faster growth. Therefore essential to have answers for questions like the below :-
- What is the purpose of the business?
- What are the core business values?
- What is the vision of the business?
- What is the mission statement?
- What are the business objectives?
By having these clearly stated, the business has a better sense of direction in the way it needs to be headed and can take the required steps in accomplishing them, which could result in positive financial growth. Like author Simon Sinek says, “People don’t buy what you do, they buy why you do it”, making it important to have your vision and mission statements in place. If one were to observe large companies, most successful ones are ones with clarity, and they are purpose driven. For example, the purpose statement of Kellogg’s is “Our purpose is to nourish families, so they can flourish and thrive.”
If one were to observe large companies, most successful ones are ones with clarity, and they are purpose driven. For example, the purpose statement of Kellogg’s is “Our purpose is to nourish families, so they can flourish and thrive.”
Similarly, the purpose statement of Nike is “To bring inspiration and innovation to every athlete* in the world. *If you have a body, you are an athlete.
The mission statement of Google is “Our company mission is to organize the world’s information and make it universally accessible and useful.”
These statements can be short too if it conveys the message effectively. For example, for TED it is – Spread ideas.
|Ingredients of a good mission statement are :-|
Values can specify the core behaviour of the business such as the kind of experience to be given to the customer, attitude towards suppliers, treatment of employees etc. It can also include other important aspects such as ethics, integrity, innovation, collaboration etc. Will your business compromise values for profits? Your answer to this question needs to be communicated to all your team members so that all of them are on the same page as you. There are also good chances that the values that are written and the values that are in actual practice in the organisation are not in sync. How is it for your business?
4 Pillars of Strategy
To build an effective strategy for your business, you can build on these 4 pillars as the basic criteria.
- Purpose – Knowing the purpose of your business and building your strategy around it which is in line with your business objectives.
- Plan – Create your business plans according to the purpose with meticulous thought process by involving the team.
- Proactive – When the strategy planned is proactive in nature, it is on an ongoing basis to reduce the likelihood of the challenging events of business.
- Prioritise – Giving the right priority to the important aspects of your business helps in providing better business insights for execution of strategy.
The above is an extract from the author’s book “Where’s The Moolah?”, which is about financial growth hacks for business profitability.