Show Notes
When I started Beyond 50 Percent my aspiration was to connect business owners with ‘proven principles and practical action’. It made then, and still makes, perfect sense in my head but I’ve found that when someone asks for an example of a proven business principle I was suddenly less clear on what it meant in practical terms and left with something banal like ‘buy low sell high’.
Since ‘practical’ and ‘actionable’ are features that I feel strongly about I felt compelled to arrive at some clarity.
So, I went in search of business principles and here is what I discovered through both reflection and research.
Here’s what happened when I sought the Principles of Small Business Success!
Complete Show Notes
Searching for The Answer
The first thing I did… as I think we all do these days when we have a question… was to ‘Google it’.
As soon as I saw the results on the page I realized that I am not the only one that has a difficult time articulating what a ‘business principle’ is.
There were over 318,000,000 results to the simple search for ‘business principles’ and the highest ranking ones were full of good tips and advice but were they ‘principles’?
Does it even matter if we make the distinction between a good business idea or tactic and a business principle?
That’s when I realized the first flaw in my search. I had to get clear on what a principle really was.
Back to Google…
Principles matter because they are the fundamental structures upon which a business is built.
If advice is good then why should you care if it’s a ‘principle’ or a tactic?
Once I thought a bit about the meaning of the term principle I realized that in order to be a principle of business, a concept would have to be comprehensive and fundamental.
A business principle then is a concept that works for all businesses (comprehensive) and is part of a foundation upon which a successful business is built… and that’s why the distinction matters. In order to effectively use good tactics, it’s important to understand that we’re using them to build and strengthen the very foundation of our business.
Here are six principles for small business owners that I think are universal for all business models.
Vision - Have a Vision That Exceeds Your Planning Horizon
Planning - Plan to the Visible Horizon and Stop
Communicate - Communicate Effectively Internally & Externally
Value - Create Value for Others
Cash - Understand Transactional Economics
Profit - Draw Value to Grow, Benefit and Give
The Principles of Small Business Success
Why these six? That’s a great question and, to be honest, it took some doing. There are quite a number of great business tactics that are passed off as principles and when I measured each one against the yardstick of being applicable to all businesses and foundational these were the six still standing.
I want to be clear. Tactics are important but they also become more situational and have specific relevance where these ideas are timeless and fundamental to the nature of business.
Let’s briefly review each of these six principles.
Vision
I realize that vision or mission can fall into that trendy place of c-level retreats that result in lofty lobby signs. That’s not what I’m talking about. This is about understanding your place in the social & economical environment today and into the future even beyond what you can reliably see.
Planning
In order to organize and perform work at the appropriate time for your business situation you have to do some level of planning. Small business owners are faced with constraints, labor (yours or others), working capital, time in a day, pool of expertise, equipment available etc. This creates a horizon beyond which we can’t effectively plan… and that’s a good thing!
Communication
The ability to communicate effectively is important in connecting with your potential customers, your team and other stakeholders. The disciplines of marketing, advertising, public relations, human resources, leadership and management all hinge on your ability to communicate effectively.
Value
When it comes to value, the low hanging value buzzword is to define your value proposition. This term has become cliche and overused. Another phrase you’ll hear is ‘what problem does your product or service solve?”. Let’s go just a little further… how is solving that problem valuable in improving the lives of your customers?
Cash
It’s hard to overstate the importance of understanding the flow of cash in your business. How and when it comes in, where it’s kept and how and when it goes out can make or break a small business that is otherwise successful.
Profit
Is ‘profit’ a four letter word? It sure seems like it gets categorized that way sometimes. In order to survive, prosper and continue to serve others you must draw more value from the product or service you offer than you invest in it.
Practical Action
So now that we know a few business principles what do we do with that?
Take some time to consider your own situation in the context of these six concepts.
How strong is your business in each of them?
Do all of the tactics and actions you take support these principles in the most effective way?
Over the next six weeks I will cover each of these fundamentals.
In each episode we’ll talk about ways small business owners can identify how these principles are handled in your business.
In the meantime drop a comment with your thoughts. Connect with me to keep in touch and share ideas!
What is The Up and to the Right | Small Business | Practical, Actionable, Sustainable Improvements?
Welcome to Up and to the Right, the no-nonsense podcast where we blend your passion with proven business principles and practical tips, empowering you to create the impact and success you envision.
Hosted by Stephen Krausse, the show covers what matters to small business owners, startups, and people interested in becoming entrepreneurs. No buzzwords and no hyped-up trends!
A graduate of Colorado State University's College of Business, Stephen has an academic background that compliments over 25 years of business operations and management experience. He started his first business as a freshman in college in 1987, recording and producing demo tapes for local bands. Since that time, he’s been involved with numerous successful small businesses, including the operation and management of a niche high-tech company with customers and suppliers worldwide.
As a business professional by education and trade, he works with select business owners to blend their passion with proven principles, giving them the edge they need to achieve their unique impact. Stephen is always researching new products, ideas, and innovations - consuming content through audiobooks, podcasts, and online resources, and connecting with other professionals locally and abroad.
Now he’s sharing practical tips and ideas to help you get real work done. This isn’t about fancy solutions requiring a considerable investment or changing how you do your best work. You’ll discover ideas that will allow you to integrate proven principles into the way you already get things done. You’ll get practical ideas to easily replicate, modify, and integrate into what you already do.
Up and to the Right covers topics like getting value out of a business model, outsourcing, hiring for small businesses, working across platforms, productivity and efficiency hacks, building revenue streams, communication and planning, and more! Some episodes will have related downloads available from the show notes page below or unique segments with guests who have industry-specific tips that would be helpful.
It’s time to roll up your sleeves and get to work. Listen to Up and to the Right with Stephen Krausse today.