March 23, 2013

The Ten Timeless Principles for Managing a Successful Business




The Ten Timeless Principles 
for
Managing a Successful Business 



I. Think Straight
Maintain a detached point of view.
Reduce stress with exercise, nutrition, breathing, meditation, and rest.
Think big, start small. Think, plan, do, repeat.

II. Travel Light
Minimize the number of founders, investors, and board members
to those who can agree on, and contribute to, the goals of the business.
Terminal conflict is likely when key people disagree.

III. The Customer is King
Define the business in terms of Who buys What, and Why.
Create incentives to attract the most profitable customers.
Remove the risk of buying. Make products and services easy to buy and use.

IV. Write It Down
Execute the written Plan that shows Who does What, by When. 
Vague intentions make communication uncertain, and execution weak.
Poor execution results in a poor payday. Do it, document it, delegate it.

V. Hire Experience  
Recruit people with proven records of success doing what's needed. 
Hire in harmony with the culture and goals defined by The Plan.
Always be recruiting. Hire slow; fire fast.

VI. Motivate
Reward superior performance.
Define the minimum level of success for each team member.
Build systems for success. People don't fail, systems fail.

VII. Conserve Energy 
Focus on achieving two or three specific objectives at a time.
With limited resources, the winning strategy is a focused market Positioning.
Prioritize. Use Leverage. Work on the business, not in the business.

VIII. Let There Be Cash 
Keep cash and credit available for the unexpected.
Survival is determined daily by the cash account, not the financial statement.
Sales solves all problems.

IX. Be Not Greedy
Expand methodically from a profitable base toward a balanced business.
With limited resources, sequential growth over time is the wise strategy.
Make managing a competitive advantage.

X. Test 
Improve continuously.
Measure and Learn from every action.
Increase the speed of the Feedback Loop.
Do good now, make it better later.



Michael McCafferty
Advisor to Entrepreneurs


© Copyright 1983, 2013 - all rights reserved


Word Cloud of The Ten Timeless Principles for Managing a Successful Business


The Ten Timeless Principles are a rewrite of 
The Ten Commandments of Managing a Young, Growing Business,
which were originally published in 1983.