THE PURPOSE OF BUSINESS

 

                               THE KEY OF SUCCESS

                     WHAT IS THE PURPOSE OF A BUSINESS?  THE PURPOSE OF A BUSINESS IS TO CREATE AND KEEP A CUSTOMER IN COST-EFFECTIVE MANNER. PROFITS ARE NOT THE PURPOSE OF A BUSINESS. PROFITS ARE THE RESULT OF CREATING AND KEEPING A SUFFICIENT NUMBER OF CUSTOMERS WHO YIELD A SUFFICIENT NUMBER OF PROFITS AFTER ALL COSTS.

                       WHAT IS THE KEY MEASURE OF BUSINESS SUCCESS? THE ANSWER IS CUSTOMER SATISFACTION. EVERY EFFORT AND ACTIVITY OF YOUR BUSINESS MUST BE AIMED AT SATISFYING CUSTOMERS IN A MANNER THAT IS BETTER THAN ANY OTHER COMPETITOR.

                        WHAT IS THE MEASURE OF CUSTOMER SATISFACTION? THE ANSWER IS REPEAT BUSINESS. IT IS ONLY WHEN CUSTOMERS BUY FROM YOU AGAIN THAT YOU DEMONSTRATE THAT YOU HAVE FULLFILLED THE PROMISE YOU MADE TO THEM WHEN YOU GOT THEM TO PURCHASE THE FIRST TIME. A RESALE TO A SATISFIED CUSTOMER REQUIRES ONE TENTH OF THE TIME AND EXPENSE AS A SALE TO A BRAND NEW CUSTOMER. ALL SUCCESSFUL BUSINESS RELY ON REPEAT BUSINESS, WHICH IS POSSIBLE ONLY WITH HIGH LEVELS OF CUSTOMER SATISFACTION. THIS IS A REAL DISCIPLINE.

                         WHAT IS THE KEY TO LONG-TERM PROFITABILITY? ANSWER IS RECOMMENDATIONS AND REFERRALS.

                            THE ULTIMATE QUESTION THAT DETERMINES THE LONG-TERM SUCCESS  OR FAILURE OF YOUR BUSINESS IS, "BASED ON YOUR EXPERIENCE WITH US, WOULD YOU RECOMMEND US TO OTHERS?"

                              YOU CAN SURVIVE AND THRIVE ONLY WHEN THE MAJORITY OF YOUR CUSTOMERS ARE SO HAPPY WITH YOUR PRODUCTS AND SERVICES ARE SO HAPPY WITH YOUR PRODUCTS AND SERVICES THAT THEY WILL ENCOURAGE THIER FRIENDS AND ASSOCIATES TO BUY FROM YOU AS WELL. SINCE A REFERRAL FROM A SATISFIED CUSTOMER IS FIFTEEN TIMES EASIER TO SELL TO THAN A COLD CALL (WHICH MEANS IT COSTS ONLY ONE FIFTEENTH AS MUCH), REFERRALDOUS FOCUS AND DISCIPLINE TO DEVELOP AND MAINTAIN CUSTOMER SERVICE POLICIES THAT CAUSE PEOPLE TO BUY FROM YOU, THEN BUY AGAIN, AND THEN RECOMMEND YOU TO FRIENDS.

                                     SET HIGH STANDARDS

                    YOU REQUIRE THE DISCIPLINE TO SET STANDARDS OF EXCELLENT PERFORMANCE IN EVERY AREA OF YOUR BUSINESS AND THEN TO CONTINUALLY STRIVE TO GET EVEN BETTER. YOU NEED TO PRACTICE THE CANEI FORMULA, WHICH STANDS FOR, "CONTINUOUS AND NEVER-ENDING IMPROVEMENT." NO MATTER HOW HIGH YOUR LEVEL OF QUALITY IS TODAY, YOU CAN NEVER BE SATISFIED. YOU MUST CONTINUALLY BE RAISING THE BAR ON YOURSELF - AND ON EVERYONE WITHIN YOUR AREA OF RESPONSIBILITY.

                     YOU REQUIRE THE SELF-DISCIPLINE TO WORK LONG, HARD HOURS FOR MANY MONTHS AND EVEN YEARS TO GET TO THE TOP IN YOUR BUSINESS. THE AVERAGE ENTREPRENEUR, BUSINESS OWNER, OR SELF-MADE MILLIONAIRE IN AMERICAN WORKS FIFTY-NINE HOURS PER WEEK. SOME ENTREPRENEURS EVEN WORK SEVENTY TO EIGHTY HOURS PER WEEK IN THE FIRST FEW YEARS OF BUILDING THEIR BUSINESS. YOU MUST BE PREPARED TO DISCIPLINE YOURSELF TO PUT IN THIS AMOUNT OF TIME AND LEVEL OF HARD WORK IF YOU WANT TO BE THE BEST AND GET TO THE TOP OF YOUR FIELD.

                          THINK ABOUT THE SOLUTION

                  TO SUCCEED IN BUSINESS, YOU NEED THE SELF-DISCIPLINE TO BE PRACTIVE RATHER THAN REACTIVE. YOU NEED TO FOCUS ON SOLUTIONS RATHER THAN PROBLEMS. YOU NEED TO CONCENTRATE ON THE MOST IMPORTANT THING YOU COULD POSSIBLY BE DOING EVERY HOUR OF EVERY DAY RATHER THAN GETTING SIDETRACTED BY LOW-VALUE TASKS AND ACTIVITIES.

                   ABOVE ALL, YOU NEED THE SELF-DISCIPLINE TO SETTLE IN FOR THE LONG TERM, TO DEVELOP OF LONG-TIME PERSPECTIVE IN YOUR BUSINESS LIFE. BECAUSE OF THE INTENSITY OF COMPETITION. IT TAKES MANY  YEARS OF DISCIPLINED EFFORT FOR YOU TO BECOME A BUSINESS SUCCESS, WHETHER THIS IS IN YOUR OWN BUSINESS OR WORKING FOR SOMEONE ELSE. THERE ARE NO SHORTCUTS. THERE ARE NO EASY WAYS TO GET TO THE TOP. THERE IS ONLY ONE WAY, THAT IS THROUGH HARD WORK, DISCIPLINE AND WILLPOWER.

                      ON AVERAGE, IT TAKES ABOUT TWO YEARS TO BREAK EVEN IN A NEW BUSINESS VENTURE. IT  TAKES ANOTHER TWO YEARS OF POSSIVIVE CASH FLOW TO PAY BACK THE MONEY YOU BORROWED IN THE FIRST TWO YEARS. IT THEN TAKES ANOTHER THREE YEARS BEFORE YOU BECOME TRULY SUCCESSFUL. IN ADDITION, EVERYTHING COSTS TWICE AS MUCH AND TAKES THREE TIMES AS LONG.

                     BASED ON THESE STATISTICS, WHY SHOULD YOU START YOUR OWN BUSINESS OR EMBARK ON A NEW BUSINESS VENTURE? BECAUSE THE TIME IS GOING TO PASS ANYWAY! AFTER ALL, FIVE YEARS FROM NOW YOU WILL BE FIVE YEARS OLDER, AND TEN YEARS FROM NOW, YOU WILL BE TEN YEARS OLDER. AL THE END OF THAT TIME, YOU WILL EITHER BE AT THE TOP OF YOUR FIELD OR STILL DOWN AMONG THE 80 PERCENT STRUGGLING FOR EVERY DOLLAR AND WORRYING ABOUT MONEY EVERY DAY. THE CHOICE IS YOURS. DISCIPLINE IS THE KEY.

                         IN THE NEXT CHAPTER, YOU LEARN  THE DISCIPLINE THAT CONTROLS THE LIFEBLOOD OF YOUR BUSINESS, SALES. IN THE FINAL ANALYSIS, AS PETER DRUCKER SAID, "THE PURPOSE OF A BUSINESS IS TO CREATE AND KEEP A CUSTOMER".

                                   ACTION EXERCISES

                 1. STAND BACK AND LOOK AT EVERY AREA OF YOUR BUSINESS, AS IF YOU WERE AN OUTSIDE CONSULTANT. WHAT CHARGES WOULD YOU RECOMMEND?

                 2. IMAGINE YOU WERE STARTING YOUR BUSINESS, OVER AGAIN TODAY. ARE THERE ANY PRODUCTS OR SERVICES THAT YOU WOULD NOT BRING TO THE CURRENT MARKET?

                3. IDENTIFY THE   20 PERCENT OF YOUR PRODUCTS AND SERVICES THAT ACCOUNT FOR 80 PERCENT OF YOUR SALES AND PROFITS. HOW COULD YOU SELL MORE OF THEM?

                4. PROJECT FORWARD ONE, TWO, AND FIVE YEARS IN YOUR BUSINESS, WHAT ARE THE TRENDS? WHAT WILL YOUR CUSTOMERS BE BUYING IN THE FUTURE.

                5. LIST THREE WAYS YOU COULD IMPROVE YOUR CUSTOMER SERVICE TO ENSURE THAT CUSTOMERS BUY FROM YOU AGAIN AND TELL THEIR FRIENDS.

                 6. LIST THREE WAYS THAT YOU COULD ATTRACT MOR AND BETTER QUALIFIED LEADS FROM YOUR MARKETING AND ADVERTISING ACTIVITIES.

                7. LIST THREE WAYS THAT YOU COULD MAKE MORE SALES TO THE PROSPECTS YOU ATTRACT OR THAT YOU COULD ATTRACT MORE AND BETTER PROSPECTS.