Category: Business

An MBA learns many business standards and practices, like finance, accounting, marketing strategy, and operations, but MBA programs also teach business principles that are just as important. An ethical, responsible, and principled business succeeds and is essential to the community, and this doesn’t go unrecognized by business professors.

Every serious business publication, like Harvard Business Review, will discuss the need to conduct principled business. The highest profile failures and value destruction have always come from companies that fail to embrace strong principles and serve all of their stakeholders. Those company leaders might have had MBAs but obviously didn’t pay attention in class.

Here are some business principles you could expect to discuss in an MBA program.

Don’t Get Full of Yourself

The greatest business disasters and value destroyers have been committed by executives that loved the wealth and prestige and thought they could do no wrong. Not only do those companies often make tremendous mistakes, but thinking you’re doing everything often means many customers aren’t being served. The little, nimble, and humble players are happy to come in and snatch those customers up.

Most companies have a definitive lifespan. Of the original Dow Jones companies, only one exists (GE) and it is no longer listed on the Dow. All of the executives in GE under past CEO Jack Welch have gone on to destroy companies simply because they thought they were the best.

Create Value for All Stakeholders

In the 80s, Milton Friedman’s economic theories said that the only people corporations were responsible for were the shareholders, and it’s probably one of the worst theories in history for expanding company value.

MBA professors counter that theory with examples of companies that have valued employees and communities as much as they do their shareholders. They show students that the overall value created by stakeholder-conscious companies far outpaces those companies that only seek to reward shareholders. The most successful companies aren’t just financially successful but successful in fulfilling a social mission.

Lead With Integrity

Business leaders accomplish more and create more value for everyone when they lead by example, listen to the opinions of their employees, and inspire people. A leader needs to be willing to spend some time in the trenches learning what employees do and thanking them for their hard work. Such leaders inspire job satisfaction and increased understanding of the company, helping them better manage and lead.

In such classes, it is not uncommon to discuss leadership failures and watch discussions between leaders who hurt companies and those who made them great. Biographies and movies about leaders that inspired, lead with integrity, and got their hands dirty are common assignments in an MBA program.

Patience

Companies aren’t built or become great overnight; even the most innovative products must first be known in the marketplace. Patience keeps the company focused on long-term goals and adjusting as needed, which are essential for company success.

A patient leader also fosters long-term vision in their employees, setting everyone up for success. It’s not about how much money you make this quarter but the value the company creates over its lifetime.

Strong, patient leaders better understand customers, rebound from failures, and convey a true vision to investors.

An MBA is a primer for all business disciplines that create effective generalists and a program that instills business ethics and principles. Business professors have watched the mistakes of businesses of the past and know that instilling values makes the greatest success stories. No MBA class will ever praise the CEO that made millions from practices lacking in integrity.

Overhead costs are ongoing business costs that businesses must pay in order to stay operational. Rent, salaries, utilities – all of these costs fall into the category of overhead. While it’s true that you have to spend money to make money, some overhead costs don’t need to be quite so high or such a burden for your business. Below are five ways that you can cut overhead costs to increase your company’s profits. 

1. Shop Around for Office Space

Your office space makes up a huge part of your overhead costs, but there are many ways that you can trim those costs.

• Boost your work from home workforce. Sending staff to work from home allows you to cut back on the office space that you currently occupy. Think of it: if you could send a percentage of your workforce to home offices, you could easily move into a smaller and cheaper office space.
• Declutter. If you’ve been in your office space for a long time, you may have accumulated a lot of things you don’t need and could easily get rid of. Once you’ve decluttered, you could discover that you don’t need the large office you currently lease.
• Move to an “open office layout.” An open office layout allows you to flex how many people work in your office without seeking out new office space every time you make a hire. 

2. Lease Equipment, Don’t Buy

While buying equipment can seem cheaper than leasing, leasing has many advantages. Low up front costs allow you to get the office equipment you need without making a huge investment. And, best of all, maintenance and replacement costs are taken care of for you. This saves you money in ways that are hard to calculate but very real. 

3. Use Eco-Friendly Equipment and Business Practices

Utilities are a drain on your business, but you can reduce your overhead by finding eco-friendly ways to reduce your dependence on energy. Whenever possible, use natural lighting and day lighting instead of (or to supplement) electrical lighting.

Buy ENERGY STAR rated appliances and seek out the most energy-efficient equipment available. Buy energy-saving power strips, use LED light bulbs and switch to a digital record keeping system to cut back on your use of paper. 

4. Outsource Services

If your company is small enough, you may not need to hire specialized positions like an HR manager or a payroll person. Fill these functions by working with companies that provide these services at a low cost. You’ll save on salaries and may also get more value for your money.    

5. Hire Wisely

Structure your company in the most efficient way possible, with team members filling multiple roles whenever possible. This keeps your team small and lean, which also helps you save on salaries that could increase your overhead dramatically.

If you’re still looking for ways to cut back your overhead costs, work with an accountant or an efficiency expert to keep your costs low. 

Take a look at the U.S. Bureau of Labor Statistics data on the success of small businesses over time, and you’ll immediately see that about 20 percent of small businesses in the United States fail after just two years. That’s a lot of failed businesses.

So, what happens that makes these companies unsuccessful?

Let’s take a look at a few of the most common mistakes and explore how you can avoid them when attempting to grow your own small business.

The Top 5 Mistakes Small Business Owners Make When Growing Their Businesses

1. Spending too much upfront

When it comes time to grow your business, you want to start small. Think big, but start small.

In other words, don’t throw all of your money into one growth endeavor. Rather, try several growth strategies, putting a little bit of money into each. That way, you can see what areas of your business growth plan are succeeding first before you put more money into other attempts that may not be worth it.

2. Being disorganized

As any small business owner knows, being organized is critical to your business’s success. Staying organized is even more important. 

As you grow your business, you’re going to have more streams of income, more expenditures, more payouts, more employees, more insurance plans, and … much more. Staying organized in all of these areas means planning ahead, creating the necessary infrastructure, and keeping copious records.

3. Not understanding what need they are attempting to fulfill (and if it’s scalable)

One key to a good business idea is fulfilling a need that your target audience has. This means that you have to understand your target audience in the first place.

Let’s say that you sell children’s clothes, and you primarily sell play clothes — things that are easy to wash and will stand up against dirt, food, and grime. You are successful, and you want to grow your business, so you immediately start selling fancy dress clothes for kids. 

Why might this not be a good idea?

Answer: It may not be what your current target audience wants (i.e. They want play clothes for busy kids who get dirty, not fancy dress clothes).

Lesson: Learn what your target audience wants before deciding how you want to grow.

4. Not hiring help

You can’t do everything yourself as you grow your business. Perhaps you were able to do it all when you only had a few customers and a few sales, but as you grow, you need to hire help. Do this sooner rather than later.

5. Being discouraged by mistakes

It is certainly possible that you will attempt to grow your business, and whatever you try will fail. The biggest mistake that a small business owner can make at this point is giving up. 

Don’t be discouraged by your mistakes. If you fail, learn from your mistakes, and try again.

Grow Your Small Business

One of the most wonderful things about owning your own business is setting yourself on a path to financial independence. In other words, most small business owners hope to one day be able to make more money while doing less work. 

If this is you (and it should be), take this as a sign to take that next step and start growing your business the right way — by avoiding the common mistakes we’ve outlined above.

Business, by nature, is cutthroat. All of us that have gotten into business are trying to get ahead of the curve, especially as technology has evolved. This has caused people to make snap decisions, with fear of missing out (FOMO) becoming a trend in the business world. Just because the market is moving fast doesn’t mean that you have to make a decision within nanoseconds, though. It’s important to take your time when making any business decision, and here are some ways to do just that.

Remember the Past

Philosopher George Santayana famously said that “Those who cannot learn from history are doomed to repeat it.” This is a good mindset for anything, but especially in business. When trying to make a decision, see how a similar decision made either by yourself or someone else has worked in the past. If it failed miserably, you might want to steer in the opposite direction. Though times may change, results can often be the same.

Word of Mouth

Any good decision making process should include a lot of research. There will be facts and figures at your disposal, but it’s also important to talk to the right people. Don’t be afraid to ask for advice from anyone and everyone that you can think of before finalizing your decision making process. This is especially true if you can speak with someone that has experience in a similar decision. If you are a manager, ask your employees how they would feel about changes that your decision could make.

Think Long Term

In the evolving world that we live in, many decision makers in business are thinking short term. Whether this be to appease shareholders or mortgage the future for their own current wellbeing, it seems that the long term goals are getting thrown out of the window. If you want to set yourself and your fellow employees up for success. When you have a plan in place that focuses on five years down the road, you’re much more likely to retain employees and be more consistent in your success. It’s not necessary to follow every trend, and the most successful businessmen think years ahead instead of weeks.

Execution and Education

Once you’ve come up with a business plan, looked at data, asked around and did the research, it’s time to put your plan into place. Make sure that everyone you’re working with is on the same page with the decision that was made beforehand. You don’t want to get yourself into a situation where you made a decision without first educating employees on the changes that are being made, or else you’re setting yourself up for a big setback right from the start. Educating before a decision will also build trust that is vital to retaining good employees.

Progress Tracking

Now that your decision has been made and is off and running, you don’t just want to ignore it and hope for the best. Every month or so, it’s important to keep an eye on how the decision has impacted your business. If things aren’t working, it’s okay to make adjustments to make your decision more efficient. It’s not an admittal of failure, but rather some fine tuning that will be beneficial. After all, you don’t just buy a car and expect to run forever without new tires or oil changes at some point, right?

Sales is one of the most important aspects of any business. You won’t be in business for long if you can’t sell your product or service. That’s why it’s essential to learn everything you can about sales and hone your skills.

One way to improve your sales skills is to read books about sales. Many great sales books can teach you a lot about how to be successful in sales.

This blog post will recommend five sales books we think you should read to help your business.

1: To Sell is Human: The Surprising Truth About Moving Others by Daniel Pink

This book is all about how to be successful in sales. It’s written by Daniel Pink, who is a well-known business author. In the book, Pink offers a new take on selling and reveals the surprising truth about what it takes to move others.

You’ll learn about the three keys to selling: Attunement, Buoyancy, and Clarity. You’ll also learn about the power of storytelling in sales and how to use it to your advantage.

2: The Lean Start-Up: How Constant Innovation Creates Radically Successful Businesses by Eric Ries

The Lean Start-Up is all about how to create a successful business. It’s written by Eric Ries, a well-known entrepreneur, and author. Ries offers a new business approach based on constant innovation in the book.

You’ll learn about the lean start-up method and how to use it to create a successful business. You’ll also learn about the importance of customer feedback and how to use it to your advantage.

3: The Challenger Sale: Taking Control of the Customer Conversation by Matthew Dixon and Brent Adamson

The Challenger Sale is all about how to be successful in sales. It’s written by Matthew Dixon and Brent Adamson, both well-known sales experts. In the book, they offer a new selling approach based on taking control of the customer conversation.

You’ll learn about the five steps of the Challenger Sale method: Attune, Probe, Present, Close, and Differentiate. You’ll also understand the importance of being a Challenger in sales and how to use it to your advantage.

4: The Sales Acceleration Formula: Using Data, Technology, and Inbound Selling to Go from $0 to $100 Million by Mark Roberge

The Sales Acceleration Formula uses data and technology to grow your sales. It’s written by Mark Roberge, who is a well-known sales expert. In the book, he offers a new approach to sales based on using data and technology to accelerate growth.

You’ll learn about the five steps of the Sales Acceleration Formula: Attract, Convert, Close, Delight, and Analyze. You’ll also understand the importance of using data and technology in sales and how to use it to your advantage.

5: The Ultimate Sales Machine: Turbocharge Your Business with Relentless Focus on 12 Key Strategies by Chet Holmes

The Ultimate Sales Machine is all about how to be successful in sales. It’s written by Chet Holmes, who is a well-known sales expert. In the book, he offers a new approach to selling that is based on focusing on 12 key strategies.

You’ll learn about the 12 essential strategies you need to focus on to be successful in sales. You’ll also learn about the importance of focus in sales and how to use it to your advantage.

Wrapping Up

These are just a few of the many great sales books out there. If you want to improve your sales skills, we highly recommend reading as many of them as possible.

Starting your own small business is a fascinating venture. It’s a way to be your boss, set your hours, and make your dreams a reality. But it’s also a lot of hard work, and there are a few things you need to know before you take the plunge. Here are five of the most important ones.

1: You Need a Solid Business Plan

Starting a small business without a solid plan is like setting sail without a map—you’re likely to end up lost. A good business plan will help you figure out where you want to go, how you’re going to get there, and what you need to do along the way. It’s essential to have one before you start your business, so take the time to write a good one.

2: You Need to Know Your Customers

Who are your customers? What do they need or want? How can you reach them? These are all critical questions to answer before you start your small business. Knowing your target market is essential to making sure your business is booming. After all, you can’t sell to someone if you don’t know who they are.

3: You Need to Know Your Competition

Just as important as knowing your customers is knowing your competition. Who are they? What do they offer? How can you beat them? These are all questions you need to answer before starting your small business. Knowing your competition and what they’re offering can make sure your business is one step ahead.

4: You Need to Understand the Finances

Money makes the world go round, and that includes the business world. Before you start your small business, you need to have a good understanding of the finances involved. This means knowing how much start-up capital you need, your operating expenses, and how to price your products or services. Without a firm grasp on the finances, your business will likely fail.

5: You Need a Support System

Starting a small business can be a lonely venture, so it’s essential to have a support system in place. This could include family and friends willing to help out, mentors who can offer advice, and professional service providers who can help with things like accounting or marketing. Surround yourself with people who believe in your business and will support you through thick and thin—you’ll need them!

Wrapping Up

Starting a small business is a big undertaking, but it’s also a fascinating one. Just be sure to go into it with your eyes wide open and a solid plan in place. With these five things in mind, you’ll be well on your way to success. Good luck!

Business, by nature, is cutthroat. All of us that have gotten into business are trying to get ahead of the curve, especially as technology has evolved. This has caused people to make snap decisions, with fear of missing out (FOMO) becoming a trend in the business world. Just because the market is moving fast doesn’t mean that you have to make a decision within nanoseconds, though. It’s important to take your time when making any business decision, and here are some ways to do just that.

Remember the Past

Philosopher George Santayana famously said that “Those who cannot learn from history are doomed to repeat it.” This is a good mindset for anything, but especially in business. When trying to make a decision, see how a similar decision made either by yourself or someone else has worked in the past. If it failed miserably, you might want to steer in the opposite direction. Though times may change, results can often be the same.

Word of Mouth

Any good decision making process should include a lot of research. There will be facts and figures at your disposal, but it’s also important to talk to the right people. Don’t be afraid to ask for advice from anyone and everyone that you can think of before finalizing your decision making process. This is especially true if you can speak with someone that has experience in a similar decision. If you are a manager, ask your employees how they would feel about changes that your decision could make.

Think Long Term

In the evolving world that we live in, many decision makers in business are thinking short term. Whether this be to appease shareholders or mortgage the future for their own current wellbeing, it seems that the long term goals are getting thrown out of the window. If you want to set yourself and your fellow employees up for success. When you have a plan in place that focuses on five years down the road, you’re much more likely to retain employees and be more consistent in your success. It’s not necessary to follow every trend, and the most successful businessmen think years ahead instead of weeks.

Execution and Education

Once you’ve come up with a business plan, looked at data, asked around and did the research, it’s time to put your plan into place. Make sure that everyone you’re working with is on the same page with the decision that was made beforehand. You don’t want to get yourself into a situation where you made a decision without first educating employees on the changes that are being made, or else you’re setting yourself up for a big setback right from the start. Educating before a decision will also build trust that is vital to retaining good employees.

Progress Tracking

Now that your decision has been made and is off and running, you don’t just want to ignore it and hope for the best. Every month or so, it’s important to keep an eye on how the decision has impacted your business. If things aren’t working, it’s okay to make adjustments to make your decision more efficient. It’s not an admittal of failure, but rather some fine tuning that will be beneficial. After all, you don’t just buy a car and expect to run forever without new tires or oil changes at some point, right?