Key strategies for creating a business that stands the test of time
A business in my community recently marked 100 years of operation. There was a party, celebrations and even recognition from politicians for their years of service to the community.
I honestly don’t know much about the business except for the great service I’ve experienced as a patron over the years.
What I do know, however, from my decades in business is that there needs to be a lot more than great customer service happening behind the scenes for any operation to survive for a century.
Every business has a life cycle.
It usually begins with an idea and a struggle. In this stage, the business owners are trying to generate enough sales to break even. They’re doing everything they can to find a business model that will work. They need to find a workable business model, look for profitable products or services that will put money in the bank and ensure they have cash flow to pay their suppliers and lenders.
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Most businesses fail to get past this stage.
If you’re lucky enough to get through the early days – it typically takes about three years – there’s the thrill of watching your business grow and flourish. While you might not be making much money, you can see the fruits of your early labours generating results. Customers are starting to come to you, and while you might still be working 12 or 14 hours a day as an entrepreneur, you can see some light at the end of the tunnel. You probably love what you’re doing.
Then come the good times.
You’ve figured it out and your business is generating some cash to compensate for the lean years you’ve gone through. You’re happy to be employing some good people and making a difference in your community. You decide to expand your operations or start another business. You might run for city council or try to make the world better because you think you’re set and need a new challenge.
But wait! As you become distracted, your business starts to struggle. Key people retire or move on, a recession hits, or, because you aren’t paying attention, some key customers leave.
One day, you wake to the fact that you need a business that’s sustainable through good times and bad, one that can operate when you’re not paying attention. At this point, we tend to diversify revenue streams, implement systems, and establish procedures to ensure that we hire great people to manage our business. If we’re lucky, business gets back on track.
For years, we might enjoy that thriving business. Then, one day, the business seems monotonous. We’re just doing the same thing over and over. It doesn’t generate the thrill it once did, our employees and even our customers. If we aren’t careful at this point, competition can swoop in and take away our competitive advantage because we’ve become complacent.
Yes, we reassure ourselves that we’re still growing. However, at some point, things will change, the economy will turn, and we’ll realize that our business is suffering.
If we’re fortunate, we can create a vision that will revitalize our business, re-energize our employees and thrill our customers again. This will take different forms for every business, but it might mean that we need to replace outdated strategies with new, more relevant concepts.
Many businesses never get beyond this stage and begin the long decline into oblivion.
A business that lasts 100 years has a proven track record of overcoming challenges. They’ve faced difficulties that their customers are often unaware of. They’ve tried approaches that didn’t work and pursued strategies that didn’t succeed. While they may have experienced financial success, they’ve also provided stable jobs and supported many grateful families and communities.
To help your business survive 100 years, focus on these key strategies:
- Adaptability: Stay flexible and be willing to evolve with changing markets and technology.
- Customer-centric approach: Build strong relationships with your customers by consistently meeting their needs and exceeding expectations.
- Long-term vision: Make decisions with the future in mind, not just short-term gains. Invest in sustainable practices and innovations.
- Strong leadership: Cultivate effective leadership to guide the company through challenges and inspire your team.
- Employee well-being: Prioritize your employees’ satisfaction and development, as a loyal workforce is critical to longevity.
- Resilience: Be prepared to navigate economic downturns, industry shifts, and unforeseen crises by staying resilient and resourceful.
- Community engagement: Support your community, as strong local ties can contribute to your business’s long-term success.
One hundred years in business is indeed something to celebrate and admire. By consistently focusing on these areas, your business will be better positioned to endure and thrive for generations.
David Fuller is a Commercial and Business Realtor with a strong reputation as an award-winning business coach and author. He has extensive experience helping businesses grow and succeed, providing guidance on various aspects of business management, strategy, and development. His work as a business coach and author has earned him recognition in the industry, making him a respected figure in real estate and business coaching.
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