Running a business has always been a real challenge. There are classic questions that every business must answer. What products and services are you offering? Why should potential customers choose to patronize your business instead of your competitor’s business? Who are your competitors? What is your business plan? What kind of profits are you anticipating? What kind of people are you looking to hire? What kind of culture do you want to promote in your business? What is your marketing plan? How will you get the word out to potential customers? There have always been a lot of logistics to running a successful business.
Today it is more challenging than ever to build your business. In addition to the challenges mentioned above there are more regulations than ever to navigate when starting and operating a business. There is also a lot more competition today than ever before. Living in a digital world means a whole new world of advertising opportunities for both you and your competitors. Thanks to the ability to buy anything online it also means that your competition might be half-way around the world. These new challenges demand a new formula for business success.
We call that formula is the P3 Formula. It is a tested and proven formula that anyone can use to grow their business. It can be applied to businesses of any type and size. The P3 stands for the three P’s that you need to focus on to succeed- Profits, Performance and Productivity. The P3 Formula harnesses the power of those three P’s to turbo charge your business and make it sure is success. It helps you succeed even in today’s stressful and competitive business climate. It can be easy to burnout if you don’t have the right focus and the P3 Formula lets you put your focus where it needs to be.
The Bottom Line on Profits
You probably have more than one reason for being in business. For most people their business grows out of a specific passion that they have. A passion for food might lead someone to open a restaurant. A passion for cars might lead someone to open a garage. A passion for sewing and clothes might lead someone to open a business as a tailor. Many people who open their own businesses also enjoy people and developing relationships with their customers. They see their business as part of the community they live and work in. Those are good motivations but, let’s face it, the bottom line is your business depends on profits.
Why is focusing on profits so important to your business? Well, obviously, you can’t run a successful business if it isn’t making a profit. Without profit your business will not allow you to support yourself. You can’t pay your employees. You can’t keep the doors open and the lights on. The main goal of any business must be making enough money to sustain the business. That is part of why a good business plan is so critical to the success of any business. It tells you where are expecting your customers (and thus your profits) to come from. You need to identify who you expect your customers to be and plan accordingly as your set goals for your business.
Simply keeping your business going isn’t enough though, is it? You want your business to grow and to thrive! You want become a large, well-known business that is expanding and gaining more customers all the time. That is why focusing on profits is so important. It allows you to experience that growth. How does it do that? Well, money is a bit like magnets. Money attracts more money. It’s like the old saying goes, “You have to spend money to make money. If you have a good profit margin it will allow you more options when you want to borrow money for capital improvements and expanding your business. Banks are traditionally reluctant to lend money to a business that cannot demonstrate the ability to turn a profit. Taking out loans can be a bit risky but it is often the best route to take when it comes to growing your business.
Loans are the only way to grow your business. Investors are often key when you want to expand. They provide an infusion of cash to allows you to invest in expanding your business to a level that you wouldn’t achieve without your investors. Naturally your investors expect to receive a return on their investment and they will want to examine your profit margin before they invest. More profit also allows you to hire more great employees for your business. At first it may seem like paying more employees means less profit but, in fact, more employees mean that you have the capability to handle more business and investing in your employees helps you grow your business.
An Oscar-Worthy Performance
Performance is the next area you must focus on to grow your business. They say that you never get a second chance to make a first impression. Since that is true you want to make a great first impression every time a potential customer walks into your business. You want to turn them from a potential customer to a regular customer. You also want to keep your regular customers coming back. In order to dazzle your customers, you need to perform at a high level. That means putting in extra effort and offering a product or service that is a cut above the ordinary. Don’t forget that you have a lot of competition out there. You must find ways to out-perform your competition.
How can you do that? It begins with taking an inventory of yourself and your business. You start by setting clearly defined goals for your individual growth and the growth of your business. Once you do that you can you can measure your performance as you work to meet those goals. It gives you the opportunity to have a clear picture of your strengths and weaknesses. You learn where you need put in some work. That can be challenging because you see the obstacles you need to overcome. On the other hand, it can also be a real ego boost because you will also discover where your strengths are. You earn bragging rights and gain the confidence that comes with knowing what you can do better than anyone else.
While you are taking an inventory of yourself and your business don’t forget about your competition. It is great to know yourself and your business but, to really maximize the way you and your business perform, you need to get to know your competition. You need to know their strengths and weaknesses and measure yourself against them. Ask what you and your business can offer that they don’t. How can you out-perform the competition? Taking time to create a detailed analysis of the competition will help you figure out the answer to that question.
Turbo-Charge Your Productivity
You simply can’t have a growing and thriving business if you don’t maximize productivity. As your business grows you need to pick up production in order to produce more and serve more customers. This can be a challenge but it is also a great problem to have. After all, you can’t have a problem with your supply unless you have a more demand than you did before. When you experience that happy problem, there are a few key things you can do to increase productivity.
Begin with an analysis of your existing set-up. If you feel like you need to expand your production stop and look at how you are already doing things. There may be ways that you can improve productivity within your existing system. A careful analysis will let you know how the different parts of your workforce function. Like cleaning grit out of a machine, you can improve productivity by addressing the problem areas that dragging down productivity. Your analysis may also allow you to confirm that you should take steps to expand your business operations.
If you feel that the time has come to expand your business, then you should take steps to research the technology that will help you expand. There is a lot of new technology out there (with more coming all the time) that can help you increase productivity. Research the technology that will help you with marketing and with production. Research the computer power and the equipment you will need to increase productivity. You may be surprised by what is out there.
Keep in mind how important self-assessment is to productivity. Just as we discussed when we talked about boosting your performance, self-assessment is key to boosting productivity within your business. Know yourself and know your competition. Pinpoint what you can do better and more efficiently. This is an area where it can be helpful to hire an outside expert to analyze productivity. Make it a continuous process and assign specific goals that your employees can work toward. Acknowledge when your team members meet or exceed goals. That self-awareness will turbo-charge productivity and make your business a success.
What is the passion that led you to the business that you are in? Whatever it is, you want to keep that passion. You don’t want to burn out and you don’t want your business to fail. That means that you need to find a way to nurture what you love about your business while growing it. That means keeping your focus on the most important factors that affect the growth of your business. That is where the power of P3 will help you. By focusing on profits, performance and productivity you can ensure the success and the growth of your business. How can you apply the powerful P3 formula to your business and help it thrive?