In a recent talk to The Networking Group online meeting, business growth specialist Tibor Mackor discussed the foundation of business growth and provided some advice on approaching it.
He shared seven principles.
The business hierarchy of needs
To start off, Tibor explained that much like people, businesses also have a hierarchy of needs. Each level establishes a basis for the one that follows. They are stacked like this:
Sales are the base level, and through it businesses acquire cash. Cash establishes the next level, which is profit. Profit in turn creates stability, which sets the way for the third level, which is order. Order leads to efficiency.
The lower three levels combined lead to an impact, which leads to transformation. At the highest level, a business becomes a legacy institute and a permanent fixture. Once a business has reached this level, it’s reached the apex. In New Zealand, Tibor points out that an example of a legacy business would be Air New Zealand.
So that is the hierarchy of needs, but how does one begin building the pyramid?
7 business growth principles
In order to establish sustainable growth, Tibor explains that a business needs to follow 7 principles, each is equally important and has its own nuances.
- Passion
The first principle is passion. As a business owner, you need to have passion for your business and do small things every day to work to improve your business and keep that passion flowing.
- Clear vision
Next, you need a clear vision, and the ability to communicate with others clearly. You need to be able to tell your staff, affiliates and clients where your business is going so that they can work alongside you to take it in that direction. What is your mission, and how will it be achieved? A clear plan lets you and everyone else know what they need to do.
- Hire the best people
This principle is crucial. You have to ensure you’re hiring the best people. Tibor points out that the right people have three things. They have the right attitude, are a good fit for your workplace, and have the correct qualifications. Tibor cautions against looking for general staff. Rather you should focus on attracting the right talent and fostering a cohesive working environment.
- Clear communication
This principle underpins all the others. You need to make sure that you communicate clearly, and unambiguously. This works both ways. As a boss, it might be easy to ignore input from your workers, but Tibor explains that it’s important to be able to receive feedback as well as give it.
- Urgency
Tibor notes that this is an area that many businesses often lack. It’s important, once your goals are laid out, to pursue them with urgency. Failure to do so will often inspire complacency in your workforce which could lead to mediocrity. Tibor describes this as a “rot” in any business.
- Execution
The sixth foundation is proper execution. Plans must be carried out and followed through with. As an additional step, as the leader, you need to follow up on execution, see everything implemented correctly, and record progress.
- Customer focus
The final foundation is having a strong customer focus. You need to be able to focus on your customer’s wants and needs and forge a strong bond with them. A focus on your customers and the expansion of what you do for them will lead to higher profits.
Conclusion
Tibor concludes his discussion with a simple question “Are you ready for change?” If you’re ready to take your business to the next level, then it’s vital that you get to grips with the business hierarchy of needs and begin building upon it with these 7 principles of growth.
See the whole presentation on (12) “BUSINESS GROWTH FOUNDATIONS” WITH TIBOR MACKOR FROM BETTER BUSINESS STRATEGIES. – YouTube
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www.tng.org.nz/groups
