Is your Child Running a Better Business Then You? Getting Back to the Basics of Business
We’ve all done it, if you grew up in a neighborhood summer time was the right time for making a little money on the side. You had a great location, no rent, utilities, and very little overhead, and you felt everyone needed what you had…. Lemonade anyone? For some of us it was our first entrepreneurial voyage, with dollar signs in our eyes we set up our stand in the front lawn waiting for the whole world to beat a path to the delicious and refreshing product we were providing. The price was right, who wouldn’t pay a quarter for an ice cold drink? We have our angel investors all lined up with the capital to infuse into our little operation, good old mom and dad. Oh the simple days of commerce.
Where have those days gone? Everything has gotten more complicated. Marketing analysis, cost structure, price competition, trends, overhead, employees, regulations, compliance, recordkeeping, strategic planning, and that’s just the tip of the iceberg. It isn’t so simple now is it? With all of the complexity of business today, how could I ask pose the question is your child running a better business? You are way more profitable, have more employees, operate on a much larger scale. All of this is true, but have you forgotten about the basic of business.
When I deal with small business clients I have a tool I use to analyze their business. It’s nothing complex; it’s not a bunch of formulas, just a diagram. The first thing I ask is how are the basics of business? When your child is running their lemonade stand their not worried about growth rates, trends, or even sales figures. They’re only dealing with the basics of business.
This isn’t a foreign concept, nor is it restricted to business. Building a strong foundation is a key to running a profitable and long-standing organization. Before the season begins, athletes revisit the basics, yes to know the plays, signs, and formations is necessary, but if you forget how to throw properly, if you’re out of shape, or forget how to perform a function the season won’t last long, and you’ll be lucky to even see the beginning. The same goes for business. A child knows only a few basics, but it’s enough to run an efficient operation.
Do they have product or service that there is a need for? Yes, people get thirsty, they need refreshment. How does the lemonade taste? Quality is necessary they know that if the product tastes nasty no ones coming back. Do they know what we’re selling? Marketing again, they list their price in big bold coloring, have the signage up and the stand manned. They’ve set a price let people know that they are open for business.
It is often the little things that trip us up, and cause us to fail. So during the hot months of the year while you’re running around creating an empire, stop at your local lemonade stand and take notice on how getting back to the basics of business can pay dividends for years to come.
Jayson Cardwell is the CEO and Founder of Cardwell Financial Group, a business and personal financial services company that assist established businesses, start-up businesses, and their owners navigate their businesses and finances. For more information visit them on the web at www.CardwellFinancial.com.
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