- December 16, 2017
- by Kate Borucka
- One comment
Business principles are necessary for every enterprise to grow in today’s fast-paced, competing world. Every business has to develop constantly, adapt to even the smallest changes in the market. This applies especially to startups and small firms which very often have to struggle to keep high in rankings and maintain their customers.
But keeping the business alive doesn’t have to be difficult and exhausting, as many people suppose. If you follow a certain pattern, it is easy and, above all, satisfying.
What Are The Best Principles of Successful Business?
Whether you own a large business, a startup or work as a single entrepreneur, you need a set of guidelines to help you focus on your work and accomplish set goals.
Here are the 4 principles of business growth. Following them will bring satisfaction and help achieve business success. They can work as your moral compass both at work and in personal life.
⇓ THE PRINCIPLES OF BUSINESS ⇓
Leading a business without an authentic purpose and goals doesn’t often end with success. Clear goals, long-term policy of development, and orienting your company around a specific product or service are the elements that constitute its authenticity.
Only this can convince your customers to choose your brand. Their opinion, the so-called word of mouth, and experience after collaborating with you are one of the biggest choice criteria. Moreover, social media development makes it hard to hide anything from customers’ perceptive eye. Thus, only an honest and authentic company is able to win with competitors.
What’s more, the mission of your business has to be authentic. What you do, why you do it, and how you do it. This prejudges your success or failure.
Remember that customers won’t buy your product if you yourself don’t believe in your purpose.
“It’s not the tools you have faith in–tools are just tools–they work, or they don’t work. It’s the people you have faith in or not.” ~Steve Jobs, Apple
This universal message by Steve Jobs is commonly known but not necessarily all business principals remember it. The basic assets of every enterprise are people. They understand all procedures better than anyone and know exactly how to keep things on the move. Every employer is a basic cell of the company and all together they constitute one well-working and healthy organism. They are like a family. And every good family needs to take care of the dynamics.
A well-organized and managed company is characterized by a strong team. It’s not without a meaning that customers prefer to talk to employees they already know. People feel more comfortable if the team has strong and friendly relationships.
Take care of your team and your team will take care of your business.
The contemporary world, functioning at an extremely fast pace, doesn’t wait for anybody who doesn’t follow the trends. An openness to new possibilities is one of the main business principles for healthy growth. Of course, every new idea (such as offering a new service or product) should be properly analyzed so you can create the right business plan.
It’s a good idea to experiment, test new products, methodologies and implement small changes to stay on top.
On the other hand, blind following of the latest business trends is not a good idea. Business owners need to balance their actions and focus on realistic goals to achieve success.
4. PROCESSES AND METRICS
Following the data and metrics is crucial to leading and growing a prosperous business. The contemporary world is based on numbers which, properly interpreted, can bring striking results. A business analysis of the market data can lead to correlating the outcomes with proper dependencies, very often not visible on the charts. Really important information is hidden under the first, visible layer (which can consist of, for example, bare numbers – meaning the revenue from the sales at a certain period of time).
Gathering and analyzing information about the product or service and related issues combined with in-depth research is the source of knowledge about your business and its condition. It can also help resolve problems, obstacles and set the right business strategy. ERP (Enterprise Resource Planning) system can greatly help you with this.
Machine Learning algorithms come with aid when it comes to discovering the facts hidden in numbers. It is a rather new but rapidly growing area of applied mathematics which is a powerful tool in combination with computer programming for business growth. Enterprises that decide to use Data Science in business can already be thought of as the leaders of the future.
FCA Principles for Business – How Can It Help Your Organization?
FCA stands for Financial Conduct Authority – “the conduct regulator for 59,000 financial services firms and financial markets in the UK and the prudential regulator for over 18,000 of those firms.” Although it is aimed at financial companies and organizations, all businesses can find it extremely helpful.
We are quoting them directly from the FCA’s website which you can visit for additional resources:
A firm must conduct its business with integrity.
2. Skill, care and diligence
A firm must conduct its business with due skill, care and diligence.
3. Management and control
A firm must take reasonable care to organize and control its affairs responsibly and effectively, with adequate risk management systems.
4. Financial prudence
A firm must maintain adequate financial resources.
5. Market conduct
A firm must observe proper standards of market conduct.
6. Customers’ interests
A firm must pay due regard to the interests of its customers and treat them fairly.
7. Communications with clients
A firm must pay due regard to the information needs of its clients, and communicate information to them in a way which is clear, fair and not misleading.
8. Conflicts of interest
A firm must manage conflicts of interest fairly, both between itself and its customers and between a customer and another client.
9. Customers: relationships of trust
A firm must take reasonable care to ensure the suitability of its advice and discretionary decisions for any customer who is entitled to rely upon its judgment.
10. Clients’ assets
A firm must arrange adequate protection for clients’ assets when it is responsible for them.
11. Relations with regulators
A firm must deal with its regulators in an open and cooperative way, and must disclose to the FCA appropriately anything relating to the firm of which that regulator would reasonably expect notice.
FCA business principles are timeless and applying to them can help you achieve business success.
All businesses have their struggles. The most important part is to realize that every person on the team makes up a work family, and it’s substantial to treat all people as such.
Remember that failures and difficulties in business life teach how to deal with problems and help us progress. So don’t give up when you make mistakes but rather treat them as challenges to overcome and an opportunity to grow. Business principles can aid you on your way to success as they teach discipline and persistence.
Read more about persistence in leadership.
And what principles do you follow?
✍ Last updated February 2020