The Three Practices of Successful Private Companies
A study by KPMG and Forbes Insights found that 58% of private businesses are poised for revenue growth of 6% or more over the coming year. Many private companies, big or small, should be able to apply the following practices to their companies to help them grow.
Develop an Objective
Having a mission provides employees a clear vision as to where the company is headed. A company needs to know what its purpose is and where it’s going. This allows everyone inside and outside of the company to know why you are in business.
Improve Employee Morale
The 2011-2012 voluntary turnover rate in Canada was just over 7%, about 1% higher than the rates seen during the recession. High turnover rates results in more money being thrown into recruiting and training employees. Employees are happier and more productive team members when personal needs are being satisfied by their employment. This further helps build stronger relationships that are likely to keep the employee working harder for you. Benefits such as on-site preschool or daycare are very advantageous to employees, and the added cost of programs such as these can be made up for in recruitment and training savings.
Other companies, such as WestJet or Publix have made their employees into owners. Employees have more motivation to provide better customer service as it directly affects their bottom line.
Use Outside Help
Some of the best private companies use real outsiders to fill executive positions, not just friends and family. In addition, they use external consultants and advisors. This allows the company to focus on its main purpose whilst using experts to help them in other business areas. Third-party advisors and consultants provide unbiased, objective recommendations to the company.
By employing these three practices, you will be able to improve the way your business is operating.
To learn about some of the other practices used by successful private companies, check out this article from Forbes.com.
Source: Bruce Upbin, Forbes
Inderpal Gill, Firstbase Business Services