Principles to Help You Run Your Business
Every successful company is built on principles. We run ours on 5 that you may find helpful in running yours.
#1. Serve clients. We think being of service is a good thing. I don’t mean subservient. I mean being of service, being helpful, and providing value. I’ve heard the business school maxim that every business is in business to make money and I recognize the importance of that, but there is no money to be made without first being of service. Your clients pay you for the value you provide so make it good. We recommend a full-service, comprehensive value proposition. For more about this subject, check out the complimentary webinar at http://www.baivbfp.com/video/webinar_right_value/index.php.
#2. Generate revenue. On the one hand you would think this could go without saying. On the other hand, when looking at the calendars of many financial advisors and seeing fairly sparse revenue generation activity one might wonder if more than a few financial advisors could use some training in running a business like a business with a clear objective to generate revenue. And it is a business. It’s a wonderful business where you help people and make a difference. However, let’s not confuse a business with a charity. You must run your business like a money-making business in order to be able to help people and make that difference in their lives.
#3. Be profitable. I don’t need to tell you, a financial advisor, about the difference between revenue and profit. And, yet, there are many financial advisors who boast big production, but not much profit. So, a friendly reminder to be profitable can’t hurt. Especially in an industry where one good measure of integrity is having enough profit to pay for a great lifestyle today, being completely insured, and having enough to fully fund your own goals and financial independence. People who give others financial advice for a living really should have their own financial house in order, right?
#4. Systemize and document everything. This is a very smart idea for several reasons. (a) It will make your life much easier. (b) It will help you serve your clients better, generate more revenue, and be more profitable. (c) It will make you much more effective at hiring, training, leading, and supervising your staff. (d) Your company will be far less dependent on individuals which improves your business valuation. For good information about building systems to run your business check out http://TrustedAdvisorToolkit.com/.
#5. Kaizen. This is the Japanese term for “continuous improvement.” As too many learned the hard way during the global financial crisis there is no status quo. You are either getting better or you are getting worse. And it’s unlikely you are improving by accident. If you are not consciously and purposely improving you are declining. Make a commitment, as the leader of your company, to continuously improve your business, your health, your important relationships, and your mental and spiritual well-being. Expect the same for your team. It’s like the old Nike slogan, “there is no finish line.”
Perhaps these principles and their explanation will help you run a better, more successful business.
