Research has shown that up to eighty percent of companies fail after a few years of take off, leading to loss of capital and employment. Many people startup a business without knowing what it entails to run a successful one. The following are 4 fundamentals of running a successful business.
Begin with the end in mind. Right before you startup a company you should have a clear picture of what you want the company to achieve in the long run.
A well written vision statement is critical for the success of any company. It states the direction/long term goals of the company in clear and concise terms.
A vision statement is intended to motivate staff by serving as a constant reminder of what the company is trying to achieve.
It also serves as a tool for strategic decision making and should provide the basis for everything that the company does.
Operational policies and plans should align with the vision statement of the company.
A mission statement is important to companies of all kinds and should state how a company intends to achieve its vision in practical terms.
Just like a vision statement, a mission statement should be clear, concise and state the company’s passion and priorities. It should always be in the present tense and goal oriented language should be used.
A mission statement helps companies focus on what really matters to itself / its stakeholders and provides it with a strategic direction.
Best Practice is that mission statements should be reviewed periodically to meet evolving needs.
Core Values of any company give it an identity. They are what guides a company’s code of conduct as well as its relationships with its stakeholders.
Core Values also increase staff effectiveness and provides a framework for achieving the vision. They should be should be reinforced and clearly communicated within and outside the company. This will improve productivity.
Example of core values of companies
Nothing worthwhile can be achieved without discipline.
No matter how good your vision, mission statements and core values are execution discipline is critical to company success.
Big corporations understand this and hence have structures that monitor and ensure that operational plans and day to day activities are aligned to the vision of the company.
For a company to stand the test of time there must be commitment to abide strictly by its vision and mission statements.
Every company owner has the desire to succeed but like every other pursuit in life, desire is not enough. There are ground rules that must be followed in order to succeed. Any company that aligns with the 4 fundamentals mentioned in this post is guaranteed success.