Make Your Business Shine by Following the Golden Rule

The health of any business fluctuates over time. When you find yourself in a slump or at a zenith, it can be difficult to see past the present moment into the future. The Golden (GLDN) Rule of Business is a simple equation that you can use to project fluctuations in your business: G = -1(L+D) + N! When you understand what each letter stands for, the equation gives you great insight into the state of your business. Growth. If your business isn’t growing, it isn’t fulfilling its potential. There’s always room for a business to grow. To begin growing, try to increase the business you get from existing clientele. You might offer promotions to jumpstart a booming season, or you might roll out a new product or service tailor made to answer to your existing clients’ wishes. To continue growing, look for new clients. Find clients who are currently giving their business to your competitors, and court them with big incentives to switch to you. Explore new markets who might have use of your products or services. When you think you can grow no more, launch a second branch. You’ve perfected your game in one region. Now, it’s time to conquer a fresh regional market. Loss. If a client switches over to one of your competitors or finds a way to phase out your industry all together, your business has suffered a loss. Loss hurts your growth, so if you feel like any client is teetering, pour yourself into preventing the loss of their business. If a client does fall over the edge, fight to win them back. Decline. If a client remains with your business but scales way back on their orders, your business is entering into a decline. Decline can be as serious as loss, especially when you take a long view of things. If you sense that a clients’ investment in your business is dwindling, find new ways to earn their business. New. On a brighter note, when you increase your business with old clients, find new clients, or expand your market, your business experiences new growth! In order to get to new growth, you will have to invest some resources, but you should see a pretty spike in your profits—a happy return on your investment! When you plug loss, decline, and new (L, D, and N) into the equation, you hope to find that growth (G) is greater than zero. A positive value (the higher the better!) means your business is headed in the right direction! A value of zero means your business is stagnant. A negative value (the lower the worse) means your business needs help! Seeing beyond the present state of your business is essential to long-term success. Use the Golden Rule monthly to monitor your business’s health over time. If you see negative growth, take action immediately.
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