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While one of the primary functions of business is profit, the primary objective of any business should be sustainability. After all, the profit margin of a bankrupt company is pretty meager... |
About Matt
About me
30 (ish), Married with 1.5 children. Looking for a way to make a sustainable life.
Personal Slogan
Balance of speed, quality and price. This is the most important thing in a business, and there is a real limit on any of these 3. If you focus too much on any one of them, you lose the others. Neglect any one of them and the other two get out of control very rapidly.
Ideals to reach for:
Inorder for a business to succeed the following conditions must be met.
- Employees and managment must be motivated (in a possitive way)
- Zero Debit policy. Companies who hold debts are forced to make bad business decisions every day inorder to maximize profit.
- Growth of employees: Businesses must grow the employee base into professionals, and continualy educate and grow them, or they get stail and stagnant and leave or slowly die
- Creativity: people must be encouraged to develop new technologies and methods.
- Good Planning: Businesses must think before they leap.
- Moral standard: Businesses must make moral decisions and decided to keep them.
- Fair wages/prices: businesses must voluntarily decide to regulate prices and wage for the overall good of employees and company for long term sustainability, this might mean giving up some percentage of profit margin.
- Community: Must be active in helping grow the community they are in. (not just people arround the globe)
- Communication: Required, no questions asked
While no real business is perfect, Shooting for an ideal is a good way to get something that is good, and this is not an exhaustive list of what is needed it is a good outline.
Pitfalls to Avoid:
- Lack of adaquate planning (shot from the hip, and see what sticks, often you will find out that nothing sticks...)
- Thermostat "re-calibration" (if we hold a lighter under the thermostat until it reads 80 degrees it must be 80 degrees in this room, just ignor the ice on the wall, cause the thermomater says it is 80...) (aka "enron math")
- Personal / Corporate greed: In the ever present push to maximize profit and minimize output, foolish decisions are being made. There are lots of them I'm sure I don't have to explain them all to you. For example a shoe manufacturer taking its production facilities to another country, cutting its cost by 90%, and deciding that the market can bear to continue paying the full price for the shoe, because people always have. (many logic flaws with this)
- Personal Ego: People have a tendancey to let their ego make decisions that their brain would never even concider, just to make a point.