Mixing the words “different” and “fundamentals” hopefully got you thinking… “that makes no sense”. Yes, your product/service is special, your industry has its intricacies, your business is executed with a relative competitive advantage that keeps it going. But truly, business fundamentals don’t change, and generalists with a sound foundation in the fundamentals are like gold. I invite you to prove me wrong by identifying any of these fundamentals that don’t apply to your business.
Get the fundamentals down and the level of everything you do will rise
– Michael Jordan
I originally wrote this piece with a laundry list of business fundamentals, but I was then challenged to filter the list to a vital few. I dusted off my Kellogg B-School texts and case studies, recounted my many experiences across various industries and roles, and went through a formal market research process. I eventually whittled the list down to what I am now calling the Level4Growth Business Fundamentals. Let’s start with this highlight…
Taking care of investors and your pocketbook is just the result of taking care of core business fundamentals – Tarik Rodgers, Level4Growth
Level4Growth Business Fundamentals
I took the perspective from Level4Growth’s primary client in developing the Level4Growth Business Fundamentals; that is the company that has reached a basic level of success and is now ready for amplified growth (“It’s time for lift off!”). So here are the vital few that I call the Level4Growth Business Fundamentals:
CUSTOMERS: Build a business taking care of legitimate and strong customer needs and desires
EMPLOYEES: Take care of your employees so they can take care of your customers
COMPETITION: Keep your eye on competitive and industry pressures (rivals, substitutes, suppliers, customers)
P&L: Stay on top of revenues, expenses, and capital expenditures and structure at every level (product level, business unit/location level, corporate level)
MARKETING: Stay consistent in your message, branding, positioning, promotion through sales conversion
PLANNING: Develop a plan, work the plan, evaluate the results, revise the plan, work the plan…
C.E.C.P.M.P… Sorry, no cool alliterations there.
The Rest
I will admit that it was a real challenge distilling my list of over 15 business fundamentals down to a vital few. I still wrestle if some of the items below should have risen to the top even if a few are a bit more touchy-feely. But fret not, I still believe them to be part of the business fundamentals that apply to every business.
Mission: Lead with a compelling mission
Strategic Advantage: Understand your value proposition
Delivery: Point of delivery matters (facilities, platform, location)
Cash Flow = Runway: How do you stay financially solvent?
Process Control: Develop processes so the business isn’t dependent on you or any individual
1+1=3: Leverage resource synergies in marketing, sales, delivery, operations, etc.
Integrity: Keep integrity in all you do
Compliance: Stay in compliance with legal and regulatory restrictions
Innovation: Continually challenge yourself and your team because industry, technology, customer expectations, micro/macro-economic conditions, and most certainly the competition won’t stop moving forward
Your business is special and has the opportunity to be even more successful if you take an intentional look into how you address these fundamentals. It’s sound understanding, analysis and application of the L4G Business Fundamentals that have allowed Level4Growth success in industries as varied as manufacturing, retailing, renewable energy, technology, regulatory compliance, consulting, healthcare, non-profits, utilities, automotive, and real estate.
Success is neither magical nor mysterious. Success is the natural consequence of consistently applying the basic fundamentals. – Jim Rohn
This blog entry will be short and sweet as most of my other entries expand on various aspects of these fundamentals, so I invite you to dig in at www.Level4Growth.com/blog.