10 Rules for Succeeding in Business
Succeeding in Business From World War II until his death Getty was considered one of the richest men in the world, in this post I share his 10 winning formulas for business success. These rules were extracted from his legendary book “How to be Rich”, I have added footnotes to each of the rules to make it more relevant to our age and time. I hope you find this as useful as I did and make a commitment to apply these rules to your business.
Here are the rules;
1. Adequate knowledge of the business:
Almost without exception, there is only one way to make a great deal of money in the business world-and that is in one’s own business. The man who wants to go into business for himself should choose a field which he knows and understands. Obviously, he can’t know everything there is to know from the very beginning, but he should not start until he has acquired a good, solid working knowledge of the business.
There’s no way one can run a business successfully without having adequate knowledge of the nitty gritty of the particular business he or she is venturing into. Take your time to learn as much as you can about the particular industry, market and peculiar characteristics of the prospective customers your product or service will serve. Also, make sure you have the necessary skills needed as the leader of the business. Remember, “time spent learning and planning is considered an investment in business and the knowledge eventually acquired is an asset and competitive advantage to the business.”
2. Commitment to the central purpose of a business:
the businessman should never lose sight of the central aim of all business-to produce more and better goods or to provide more and better services to more people (customers) at lower cost.
In the words of Management Guru, Peter F. Drucker, to know what a business is, we have to start with its purpose. Its purpose must lie outside of the business itself. In fact, it must lie in society since business enterprise is an organ of society. There is only one valid definition of business purpose: to create a customer. This then is achieved through the continuous production of more and better goods or the provision of more and better services to the society at lower cost. Because its purpose is to create a customer, the business enterprise has two-and only these two-basic functions: MARKETING and INNOVATION. It is not necessary for a business to grow BIGGER; but it is necessary that it constantly grows BETTER. A businessman or woman who runs a business that isn’t doing this should not hope to achieve any form of business success.
3. Financial management: a sense of thrift (economy) is essential for success in business Succeeding in Business.
The businessman must discipline himself to practice economy wherever possible, in his personal life as well as his business affairs. “Make your money first – then THINK about spending it,” is the best mantra for the man who wishes to succeed!
There’s no way a business can be successfully managed without a good sense of money management on the part of the business owner. There must be a clear line of difference between ‘necessary expenses’ and ‘luxury expenses’. Secondly, negotiate everything! Always strive for a bargain no matter how small or intangible it may seem.
4. Seek continuous growth through necessary expansion:
legitimate opportunities for expansion should never be overlooked or ignored. On the other hand, the businessman must always be on his guard against the temptation to over expand or launch expansion programs blindly, without sufficient justification and planning. Forced growth can be fatal to any business, new or old.
Every business like every child ultimately wants to grow; this is the natural inclination of every living entity. The alert businessman or woman would seek various ways through which the business can grow through expansions. There are a few strategies for business expansion such as; buying over other related businesses, licensing of products or services, selling of franchises, opening of more branches, creation of strategic alliances and the cheapest; network marketing. Adequate planning and research must be fully carried out before any of these strategies can be adopted. Any business which fails to grow through necessary expansion faces the risk of extinction!
5. You’re the BOSS, call the shots:
a businessman must run his own business. He cannot expect his employees to think or do as well as he can. If they could, they would not be his employees. When “The Boss” delegates authority or responsibility, he must maintain close and constant supervision over the subordinates entrusted with it.
6. Seek continuous improvement Succeeding in Business Succeeding in Business:
the businessman must be constantly alert for new ways to improve his products or services and increase his production and sales. He should also use prosperous periods to find the ways by which techniques and operational processes may improve and costs lowered. It is only human for people to give little though to economies when business is booming. That, however, is just the time when the businessman has the mental elbow room to examine his operations calmly and objectively and thus effect important savings without sacrificing quality or efficiency. Many businessmen wait for lean periods to do these things and, as a result, often hit the panic button and slash costs in the wrong places.
7. Take only justified risks Succeeding in Business:
a businessman must willing to take risks – to risk his own capital and lose his credit and to risk borrowed money as well when, in his considered opinion, the risks justify. But borrow money must promptly be repaid. Nothing will write finis to a career faster than a bad credit rating.
Taking risks in order to meet the needs and solve the problem of the society is the essence of entrepreneurship. However, not all risks are worth taking. Best/Worst analysis (BWA), capital budgeting techniques, SWOT analysis etc.
8. Seek new business opportunities Succeeding in Business:
a businessman must constantly seek new horizons and untapped or under-exploited markets. Today’s shrewd businessman looks to foreign markets.
Businesses exists because of the opportunities created by the needs and problems of the society in which they operate. If these needs or problems weren’t present, the entrepreneur wouldn’t have any cause to go into business in the first place. Each need or problem represents a business opportunity usually called an ‘untapped-market’. Taking advantage of these opportunities is what innovation is all about. An innovative business is one that is alert to the needs and problems of the market it serves. Once a business becomes dead or indifferent to the needs and problems of the society, its demise is inevitable.
9. Trust is a social capital Succeeding in Business:
nothing builds confidence and volume faster or better than a reputation for standing behind one’s work or products. Guarantees should always honour-and in doubtful cases, the decision should always be in the customers’ favour. A generous service policy should always maintaine.
10. You are an instrument of nature Succeeding in Business:
no matter how many millions an individual amasses, if he is in business he must always consider his wealth as a means of improving living conditions everywhere. He must remember that he has the responsibilities toward his associates, employees, stockholders-and the public.