March 8, 2013 by Aaron Scott Young
-Aaron Young, CEO Laughlin Associates
It takes a great deal of focus and determination to keep a business running strong and it starts with having a clear understanding of the 5 Pâ€™s,Â purpose, preparation, protection, passion, and profits which all play an equal part in your business success.Â Each category comprises a specific portion of the business which characterizes the steps needed to create long term growth and prosperity.
â€œPeople with clear, written goals, accomplish far more in a shorter period of time than people without them could ever imagine.â€â€“ Brian Tracy, Author
Defining the purpose of your business plays a critical role in the success of your company. When you started your company you had a reason, you had a vision, and you had a mission. Your business purpose should be what drives you every day and provides you with the framework to make smart decisions that are aligned with your business goals. When evaluating next steps, new products, services or affiliates you should compare them against your companyâ€™s purpose. If they arenâ€™t aligned then donâ€™t do them.
â€œBy Failing To Prepare, You Are Preparing To Failâ€
Preparation is critical for long term growth throughout the business life cycle. Itâ€™s always good to be prepared for the worst, natural disaster, litigation, financial failure but itâ€™s just as important to be prepared for growth. Â Preparation starts with planning. If you have data, back it up. If you are getting ready for expansion make sure the systems you have in place can be duplicated. If you depend on one supplier, get a back-up in place.Â Being able to manage change, good or bad, no matter what the circumstance can save you from devastation.
â€œMaking money is only as good as your ability to keep it.â€
Kevin Day, Esq.
Â Running a business is risky, but you can greatly reduce that risk by establishing layers of protection between yourself, your business and your assets. The willingness to take risks is what separates entrepreneurs from the rest of the world but successful business owners know the difference between intelligent risk and waving the red flag. Asset protection starts with a strong foundation that separates out your assets. By utilizing a corporation or LLC you can eliminate the risk of putting all your eggs in one basket. Risk is part of business but you can greatly reduce the risk by putting the right pieces into place to ensure the continuation of your business into the future.
â€œA person can succeed at almost anything for which they have unlimited enthusiasm.â€Â
Charles M. Schwab
When you are able to align your passion with your business all of a sudden you start to manifest results. The passion for what you do, how you do it and who you serve will be the driving force to your success. The passion is what carries you through the tough times. If you are feeling lost, bored or stuck in your business, itâ€™s time to reconnect with your passion. Take the time to listen to your inner voice, love what you do, embrace your calling and keep pushing forward.
â€œEntrepreneurial profit is the expression of the value of what the entrepreneur contributes to production.â€
Schumpeter, Joseph A.
Profits are the benchmark of business. Profits can only be obtained when the revenue out paces the expenses, taxes and costs of running your business. Without profit your business wonâ€™t last long so keeping a close eye on your expenses and profits plays a big part in the long term sustainability of your business. You should know the cost to produce every product and service you offer. How can you cut costs? Can you raise your prices? If there is an upsell service you can provide, would that add to your bottom line without increasing your costs? These are just a few of the questions you should be evaluating on a day to day basis to drive profit to your bottom line.
Operating a successful business starts with staying focused, having a plan and being prepared. The decisions you make should be centered around your purpose and aimed at fulfilling your passion.