Pastor Welcome Thamsanqa Mlungisi Dlalisa
In previous weeks we talked about the power of vision, strategy and planning, including the importance of implementing strategy. This week we are addressing the subject: “how to measure your business success”. In life, anything that is not measured or rewarded remains undone. Therefore, if you want your business to succeed, the first step is to determine the criteria to measure it. Your criteria spell out the set of things that you will look at in order to see if there is real success.
The mistake that we make, especially in our township economies as young entrepreneurs, is that we only look at profit as an indicator for success. I must say that “profitability” is one of many indicators for business success; however, it cannot be used as the only indicator. Below are some of the critical indicators for business success:
1. Profitability
Profitability is one of the key indicators to measure business success. However, it is important to say that it is not the only indicator. Without a doubt, we all do business to make money for ourselves. However, it is short-sighted to make money, and money only, and money at all costs. Having said that, I must say that if you are not profitable then you are not in business but in charity. You must run a profitable operation in order to remain in business.
2. Employee Satisfaction
Most businesses argue that client satisfaction comes first, before employee satisfaction. I tend to differ with that notion. We also hear of statements like, “the customer is king” and “the customer is always right”. Have you ever considered a statement like “your employee is right” or maybe “your employee is king”? My argument here is that if your employees are happy, automatically your customer will be happy also. Therefore, it is somewhat short-sighted to focus on the client and ignore your employees. You might just never win that battle, in the absence of a happy employee.
3. Employee Growth: Learning and Development
Another critical issue in business is the learning and growth of your employees. If you are aiming at profit only and ignoring the skills development of your workforce, you might not make the profit next year. The more skilled your workforce, the more competitive your business will become. This is why government has come up with legislation which forces companies to train their people, namely the Skills Development Act, the Skills Development and Levies Act, the South African Qualifications Act and many others…
4. Client Satisfaction and Client Retention
Without a doubt, your client satisfaction is important. This means you have to conduct regular surveys to see if you are still meeting the needs of your clients. The satisfaction here has to do with meeting customers’ needs. This leads to client retention. If you cannot keep or retain clients, you are leaking at the bottom. Every time you leak or lose your clients, your competitor becomes stronger. You do not want that to happen.
5. Systems Development
Another key indicator is the systems that you develop. These systems make your organisation stronger and smarter each day. You work smarter if you develop internal systems. Let me rather say it like this: the size of the organisation is partly determined by the effectiveness of its systems and controls. Organisations cannot grow beyond their leaders and their systems. This means you must invest in your IT (information systems), especially these days.
6. Market Share
Another indicator is the market share. The more clients you get and keep, the better. This is how businesses succeed and grow. If you grow your business, this gives strength to your brand, or the name of your business. The perception about you and your business matters. It affects your share price, once you start selling shares in your enterprise.
7. Innovation
Business innovation is an important indicator in business. You must constantly come up with new and better ways of doing business. You need to design new products and services to meet and exceed client expectations. In today’s business, every business that does not innovate is left behind. In other words, you might even close down if you do not create new products.
So, being profitable in the absence of all the other factors is not real success!
In order to help young entrepreneurs to implement what we are learning via these articles, I have set up what I call the JOSEPH ACHIEVERS MENTORING (JAM) programme. The programme is based on Joseph in the Bible, who rose to a STRATEGIC position as the result of the dream that he had. This programme is aimed at supporting all the residents of Tembisa. It targets mainly young entrepreneurs, young professionals, university students and high school learners. It offers a range of support initiatives including career guidance, training and mentoring. Many have received business management training and mentoring through the programme. I challenge you to enroll for JAM in order to propel your life or you business to new heights. To register on JAM, send an email to dlalisa.rhi@gmail.com or call the numbers below.
For more information, contact Pastor WTM Dlalisa on 083 395 1165.
