The only equation that really matters.
Everyone who owns or runs a family business wants to grow his or her business. The first thing I try establish with new clients is what their appetite for growth really is and what their definition of growth in the coming months would look like. I’m always amazed at how clearly undefined each person’s growth target is.
Don’t get me wrong, there are several people who have laid down a detailed plan with short-term targets and long-term goals of where they and their companies are going to be in the specified periods, but for most it’s a question they have not really defined an answer to.
The first thought you probably had was growing = bigger profits or sales.
This is normally what businessmen think when asked the question but it’s absolutely not what I mean, when I ask it. I am far more interested in the business owner’s personal growth in parallel with the company’s growth.
Organisations can measure growth in terms of profits and sales, money in the bank, a larger customer and staff base and more satisfied employees and clients. All these things are important but are crucially linked to one other variable that is most often not measured – the owners’ personal satisfaction levels.
Without this last variable, the chances of the business growing to its full potential with a happy client and staff base are low. If the owner is grossly dissatisfied with the business, this dissatisfaction will become contagious and will eventually affect your employees and in turn, your clients.
The only equation that really matters in a family business is:
Happy owner = Happy customers + Happy staff + profits.