Page 24 - Landscape SA 105

BUSINESS FEATURE

FOUR CRITICAL DECISIONS

BUSINESS LEADERS MUST MANAGE

BY BERT WEENINK

It’s a well-known fact that only three percent of businesses that get started, get sold.
Most business owners who start businesses fail to capitalise on the time and effort
they invested in building them.

o, what can business owners do to Secondly, your strategy (and offering) must If you are a new or even an existing
ensure that the business they are truly differentiate you from the competition business owner, ask yourself:
Sbuilding becomes an asset with value in the market. When developing your • Are the customers, employees and other
and a legacy for future generations? strategy, ensure your offering has a real stakeholders happy and engaged in the
customer value proposition. As a business business and would you rehire them?
Through my experience as a business you want to steer the ship away from just • As leader, can you explain your
coach, I have identified four key factors all being about price competition towards business’s strategy simply and clearly,
business leaders need to consider when the blue ocean, where price is not the only and is it driving sustainable gross
starting a business. These are critical focus. Remember, those who live by price, margin growth?
when it comes to building a commercially die by price! • Are the people and business processes
profitable business that can, ultimately, in your business driving industry
run without them. Execution – taking action leading profitability?

These factors are: Our third fundamental is all about great Protect your company values and points of
and flawless execution. As a business culture.
People – the right team owner you need to set out what the
priorities are for your team, and then Things can change quickly when your
This first decision is to find and keep keep them accountable. Keep these business is growing and scaling up will
the right people in your team. You deliverables manageable. Drive clear mean that many things will compete for
need to attract and retain committed communication, with smart goals that are your scarce resources. Not only should you
and passionate team members who achievable. be prepared for this, but you should also
understand what the rules of the game are realise the importance of safeguarding
for your business, and who are capable of Business leaders must ensure that and maintaining your business’s core
consistently acting on them. important KPI’s are measured daily, weekly values. Remember them – after all they
and monthly. Communication is critical have helped you get where you are today.
I believe this starts with finding and so ensure you have regular meetings to Why not share your experiences with us,
empowering the right team members to promote openness and keep everyone in whether as a new or established business?
help grow your dream business – those the loop. Regular feedback loops can also
who share your passion and vision for the be held daily, weekly, monthly, quarterly About coach Bert
company. Too often I find that people are or annually. As Verne Harnish states in his
put in positions just because the position book Scaling Up: "Those who pulse faster, Bert Weenink is a partner at ActionCOACH
needs to be filled, rather than because grow faster". Inspire and has over 31 years’ experience
they are the right person for the job. in industry, where he worked in a number
Cash is king of senior management roles in agro-
It is, therefore, a good idea to formalise a processing businesses like McCain Foods
proper recruitment system from the start. As a business owner you must have and Clover Dairies. He has worked as a
This will ensure you recruit against a job enough cash to ensure you can weather business coach for the last eight years
specification and follow a proper interview the storm. Covid has taught us that. Many and has worked with more than 250 SMEs
and selections system. Inappropriate businesses simply could not survive as during this time. LSA
or ineffective appointments can be they did not have enough cash reserves.
extremely costly for any business, whilst A business cannot run out of cash, it’s the Bert can be contacted at 082 320 6072
getting it right by putting the right person lifeblood of business. during office hours, on his email:
in the right job can have a positive effect bert@bertweenink.com or via his website at
on your team and help your business grow In tough times you need to pay as much https://www.bertweenink.com .
faster. attention to how every business decision
affects the cash in the bank, as you would
Strategy – your unique value to revenue and profitability. In great Bert Weenink
proposition businesses, the owners know how much
gross profit they make with every sale.
Creating a truly differentiated strategy
is the second fundamental for success. The truth is that every leader must have
Business owners must remember that reliable and consistent sources of cash
any strategy must pass two tests. First is that are generated internally to fuel
customer satisfaction: you must satisfy the business growth. Again, Verne says it best:
needs of your customers. If you can get this “Growth sucks cash, it’s the first law of
right, it will help you grow a sustainable entrepreneurial gravity”.
business.

22 Landscape SA • Issue 105 2021