Expert Advice - April 2006

Learning to Let Go

Finding Entrepreneurial Success

by Vic Ciuffetelli

Business is business, no matter where you find yourself. And while local laws, customers and sales environments may vary depending on your location, if you master the fundamentals of running a business you will find success, regardless whether you work in Nevada or Indonesia. The key to owning and operating a profitable business is to design your enterprise so it works without you.

It may seem counterintuitive, but the most successful businesses operate largely without the day-to-day control of an overzealous manager. Business-savvy entrepreneurs know that their job is to find employees with the right skill sets, give them clear job responsibilities, and eventually step back and let the business go.

But before you can step back and watch your business grow, you must establish clear plans for success in the elements of business that make companies profitable. Profit, like net earnings, is the end result of an equation that depends on variable factors such as customers, pricing, costs and sales. These four elements form the basic "Business Chassis" that can be used to describe virtually any business operating anywhere.

Any Nevada-based entrepreneur knows that, in order to be successful, he must:

Treat his existing customers well while seeking out new sales opportunities;

Institute smart pricing strategies that are based on his business’s competition, its life stage, and his products;

Control costs by forming strategic partnerships with sound business partners and minimizing inventory levels;

"Upsell" customers when possible and always ensure complete satisfaction.

However, these "business basics" will only get you so far in Nevada’s competitive business climate. In order to win out over the competition, you must systemize your business team and establish methodical and standardized training methods. Employees should be familiar with each element of the Business Chassis and should be shown how these elements affect business profitability.

Finally, entrepreneurs should remember that their job as business owners is to create the company, hire the talent and provide world-class business training. The day-to-day management of a company should fall on the shoulders of the individuals they have hired and trained. Although this may be a difficult adjustment, entrepreneurs should try to envision the "big picture" and avoid getting bogged down with daily business work.

Try this: for at least one hour a day, take a walk. Don’t think about daily sales or costs, but try to construct a greater strategic vision for your company, keeping in mind the current state of your business and how that fits into your overall plans. Remember; customers, pricing, costs and sales are simply ingredients in a recipe that will create profit. Similarly, your business and its employees are ingredients in your recipe for professional success. Never concentrate on the individual ingredients; think larger and make success your daily goal.

Vic Ciuffetelli
Vic Ciuffetelli is CEO of Action International, a business consulting firm based in Las Vegas.