Entrepreneurs sometimes struggle to achieve sustainable revenues and profits. Many factors come into play, including pricing, product or market suitability, sales strategy, and user experience.
But after 20 years of starting and growing multiple businesses that generate millions in annual sales, I’ve come to one conclusion. Successful growth-oriented companies are all about people and culture.
These are my four pillars for building a thriving company.
employment rights
My entrepreneurial journey began 20 years ago when I started a web analytics consultancy in Silicon Valley after a painful layoff. The first few years were tough, but my partner and I gradually mastered sales and built a steady revenue stream. But I realized that in order to grow, I needed to develop my abilities.
then we hired Our first employee.
A bad hire can derail a business faster than any other problem. They can underperform, erode the culture, and create a vicious cycle that goes against the very reason they were hired.
I currently follow three hiring rules:
Recruit excellent human resources, I call them “A” employees. ‘A’ person employs other ‘A’ person and ‘B’ person employs ‘C’ person. An “A” performer will not want to work with or hire someone who is mediocre.
Hire based on attitude rather than skills. In one way or another, this is what Southwest Airlines founder Herb Kelleher and many other icons advocate. In his book, “It’s the bestJim Collins, author of “Putting the Right People on the Bus,” describes this as “getting the right people on the bus.” Regardless of the description, it’s a must. Look for a unique combination of competitiveness and selflessness that supports a hunger for learning and a rigorous yet collaborative culture.
Learn, do, and pursue. I learned this rule the hard way. Before you hire someone, make sure you understand what you’re hiring them for. In the early days, I knew little about selling to large corporations. My partner and I quickly hired an “experienced” salesperson, but the salesperson failed to generate any qualified leads or close any deals. When we ran into financial difficulties, I had to let him go because he wasted three months’ worth of paychecks.
Avoid this painful and costly mistake. Ask a professional colleague to recommend candidates or have a subject matter expert sit in on the interview. Don’t hire yourself for specialized skills you don’t understand.
behavioral modeling
When you hire a team, you create a company culture by default or by design. And owners have a responsibility to set the tone and lead by example.
For example, owners who need to respond quickly to customers need to lead by example. It’s not enough to just lecture your team. Owners must model the behavior they want.
continuous learning
In the modern, technology-driven economy, knowledge is the primary, perhaps only, competitive advantage. Therefore, owners who want their teams to continuously learn should demonstrate this behavior by sharing key takeaways from conferences and books.establish system for learning. Set a budget for your staff to take courses and attend trade shows. The owner’s actions guide the path.
Foster ownership
Entrepreneurs often say they want their employees to have a high sense of ownership. My answer is to treat employees like owners.
In the early days of the business, when we had less than 10 employees, I involved my team in all major decisions. Everyone felt they had a vested interest in the process and vigorously advocated for what they thought was best for the company.
We also shared monthly financial information with all staff to show the relationship between plans and actual revenues and profits. My partners and I made a commitment to provide more benefits if we met or exceeded our profit goals, and we delivered on that promise. Ownership in a financial sense was clear, as was our continued growth.
People-first businesses committed to learning, collaboration, excellence, and shared rewards can break through barriers, overcome downturns, and scale. A healthy culture does not guarantee success, but in my experience it is a prerequisite for sustained growth.
