Essential ingredients of a successful business
The three essential ingredients of a successful business are happy colleagues, happy customers and happy suppliers. It’s rare that all three work in harmony. Suppliers often get the rough end of the stick and are used as pawns due to their perceived vulnerability, employees are often treated like children, over managed and under empowered.
If you want the best out of people businesses need to work better in both areas.
In business these are my principles.
Work with people you like;
Deal with suppliers you like and trust;
Sell to customers who engage with you positively;
Do something else, ultimately for the greater good.
In all these areas – if you are making a decent margin – stop negotiating.
Sometimes it’s not just the margin that matters, it’s how you get there that matters.
Looking after employees is so important.
Last year I sold a business, which in 15 years had an employee turnover of just six people (less than one person every three years). It’s something I am very proud of.
Many of these people are very close friends of mine – I never understand the notion of mixing business and pleasure – we had positive relationships with all of our employees.
People grew with us, and we saw young superstars in the business rise through the ranks personally and professionally. It was so lovely to watch.
We were ‘Investors in People’ and a ‘Best Companies Employer’.
I have always had the most flexible terms possible for employees (in fact we never wrote them down).
We never expected them to clock in and out at 9am-5pm, some employees came in at 9.30am, some at 8am – some left at 4pm, some at 7pm, depending on what needed to be done.
Some employees had been working from home for over ten years (before it was fashionable).
The flexibility meant that they just did a better job for us.
I was always aware that some employees nipped out to walk the dog, take children to school or just put the washing on.
We treated our employees like adults, and therefore every employee behaved like one.
When it comes to suppliers – prompt payment is a fundamental part of the pact that we have with our suppliers.
A company stretching credit terms is fundamentally wrong as a source of finance.
We always pay faster than payment terms, as it makes us a good customer, meaning that the next job is done that little bit better, with a little more passion and that little bit faster, which ultimately is better for our business.
Remember it’s not just the customers that count. Look after your suppliers and your employees – without them, you don’t have a business.
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