While it may not be the sole driving factor, most organizations are in business to make a profit. With profitability as a starting point, organizational survival and expansion becomes possible.
That said, what are the traits within an organization that allows for sustained profitability?
Consider this – a football team needs the right performance, coaches, winning mentality and relentless attitude if they want to win the league.
Likewise, a company needs to have a Right Business Model, the Right Management and a Right Performance to ‘win’ in the business world.
1. The Right Business Model
What kind of a business model does your company adopt? Is your business adaptable, sustainable and scalable? These are important questions that businesses need to address in order to have a clear direction where the business is heading towards.
The Thought leadership within the organization creates a significant and positive impact especially in sustainability and scalability of the business. Thought leadership is one of the critical success factors required in the organization. The thought process and behavior between the leaders and its employees must be aligned to create a synergistic working environment.
2. The Right Management
If you take care of your employees, they will take care of your business.
– Richard Branson
No business that remains stagnant can enjoy continued profitability. Lest the intention is to experience the fates of Creative, Nokia and Kodak, innovation is key. Do you have a culture of innovation within the organization?
At the same time, does the management cultivate one of its most important resource? I’m referring to its staff, the driving force that makes the wheels turn. What kind of human capital philosophies are in place to motivate, encourage and empower employees to become intra-preneurs, to innovate and spur the company by leaps and bounds?
3. The Right Performance
Healthy gearing, growing & increasing revenue and healthy liquidity ratio are only few of the important indicators of a profitable business. Pricing of products and services is paramount to the profitability of the business and there are plenty of pricing strategies available.
Considerations for a quantum leap
With the Right Business Model, Right Management and Right Performance in place, for accelerated expansion, businesses can consider tapping into the capital markets. Benefits of going public includes access to large capital to fund growth, increase market share and also increase visibility.
If owners plan to take the business to public, assessment of the current landscape is critical before preparations for listing are made. Which exchange would be appropriate for your business, considering the industry you’re in? What listing structure should you adopt, and why should prospective investors place their vote of confidence in you?
On top of that, other considerations include the choice of underwriters, legal consults as well as the necessary regulatory permits and licenses that needs to be acquired.
Going public may or may not be for all businesses. It really depends on the objective of the management.
Despite the tediousness of the process and the costs involved, listing your business can be the next best step your company needs for an exponential jump.
How to scale your business exponentially –
Our company is conducting a closed-group networking session for business owners. During this session, our co-founder will reveal how he successfully started the business and brought it public within 7 years. To find out more, click the button below:
Mr. Evans Soh
Private Equity Associate
8 Investment Pte Ltd
Evans is a fast-rising talent in the private equity scene, specializing in the R&D and consolidation of thought leadership structures and business sustainability models that make good companies great.