Great Success Comes By Creating Value
The oft-quoted (and also mis-quoted) proverb “You can’t save your way to prosperity” has a much more pertinent meaning for business.
Many companies, small business as well as large corporations, have struggled when they focus so much on the bottom line that they forget how to move forward and drive top-line revenues.
A Forbes article last month detailed how an entrepreneur’s previous startup consumed him because of the fear of financial losses. Worried too much about pinching pennies consumed him even though the company had millions in revenue.
He discovered that focusing solely on the bottom line was no way to run a business, let alone give himself any peace or lasting satisfaction. Once he discovered what he was doing wrong, he stepped back and formulated his next start up with a focus on driving revenue and creating value.
I often say that the problem with most floundering businesses is that they changed their game plan and started playing defense penny-wise when they should be more on the offense in building value for their customers. Simply stated, by having a vision towards building loyal customers and a complete value in everything you do will help get a company moving forward and not restrained by decisions on what to spend or not spend.
Penny pinching and bottom line focus shortens an organization’s vision and take the eyes off of most everything else, particularly your company values and mission statement. Granted, profitability should be a goal; however, having the right internal systems should ensure profitability flows down through from the top line revenues.
And yet, sales is not the be-all-and-end-all. Many companies are great at getting the sale or driving revenue, but create little lasting value that builds trust or commitment form their customers.
Creating value comes not only between your customers and your organization, but also a holistic synergy within your company that transcends the inner workings and augments that trust and commitment from your customers.
When a customer sees that your company will follow through to make things right for them, or that your team works in alignment with your core values which in turn prove your organization is what it says it is, you create a value that enhances the transaction-based part of the relationship. This creates more intrinsic value beyond what you bring to your customers, a value that you can never build focusing on the bottom line and pinching pennies en route to success.
Running a business with the majority of your focus on the bottom line is “penny-wise and pound foolish”. The best success comes by creating not just sales, but value beyond the transaction. Spend your efforts on value.