Jim Collins wrote an incredible book called “Built to Last.” The central theme is how to build a company rather than just a business.
Do you want to build a company, or are you happy with a business?
What’s the difference? A company is something that someone else would like to buy, or you could pass it on to future generations. On the other hand, a business is simply an entity that makes money. It probably doesn’t work so well if the owner is not there.
There is no right answer, but as the owner of your business, I think it’s a good idea to think about this. About 10 years into running Dial 800, I was presented with the issue of whether I wanted to build a company or keep a business going. I had just made a big deal and distributed millions of dollars to my shareholders. The company's chairman approached me and said, "You can keep the company small or build it. It’s your choice."
I decided I wanted to build it, and I knew I needed help, so I hired a professional coach to help lead the way. I had a highly dysfunctional company when he came in, and he fired half of my employees. Over about 10 years, we built a real company. We had an organizational chart and a vision statement with core values and goals; we served our ideal customer, and our standard operating procedures were well-documented when we sold the company in 2017. Our enterprise value was significant due to the fact that we built a company.
Looking back today, we did an amazing job for what we knew. However, now that I understand how great a company can be with a highly developed, integrated Business Operating System (BOS) built on the 9 Core Competencies of great companies and run on the Ninety.io platform, I wonder how much bigger we could’ve been.
The 9 Core Competencies of Great Companies:
Vision
Customer
Goals
People
Structure
Data
Meetings
Process
Enterprise Value
If you want to keep a small business and that’s a lifestyle you like, that’s wonderful. However, if you want to build something lasting that you can sell for a high valuation or pass on to your kids or grandkids, you need help implementing an integrated BOS. A coach can help you with the "Concepts, Tools, and Disciplines" needed to implement a fully integrated BOSS.
Yes, it's hard to change, and it will take time and discipline. But if you stick with it, the rewards are immensely gratifying. The best things in life take work, but you can achieve them with a little help and encouragement. If you'd like to discuss further, I'm here to help.
Scott Richards (310) 613-8686 ScottRichardsConsulting.com
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