COMPANY PURPOSE

A (good) company is set up for a clear purpose. It might sound obvious, but that actually is often forgotten.

This purpose cannot be just financial goals: it should also be based on a vision. Ideally, this inner vision is passion-driven: that passion really helps to ‘fuel’ the company with positive energy and confidence. 

The company purpose is why people are applying, and why later they are spending time & energy working within that company. It is therefore important to regularly mention again what is the initial vision of the company, what is the  passion behind, to make sure that the positive energy and the focus on what’s important is never lost.

What to do…

• check if your company’s core purpose is well identified
• if it still makes business sense (if not, urgent adjustemnts are needed!)
• if it is well aligned with your overall company culture and core values
• find out if it is (still) well understood? And by everyone!
  

ENGAGING STRATEGY

A clear purpose needs a convincing strategy to become achievable. This means a clear and challenging —but achievable— business plan.

Together with a smart business plan, an effective financial management is crucial. This includes proper budgeting (often through ‘cost centers’ properly set-up within the budget tools and management layers), proper cash-flow monitoring and short/long term cash vision.

An engaging strategy will not only bring success; it will also be satisfying to execute for your crew and —always useful— is also helpful to convince investors, banks, partners… when you’ll need them!

A proper balance between financial prudence and investments courage is key to success on the long run.

What to do…

• investigate and make sure that your current business plan is realistic
• Expand your metrics, monitoring and cross-checking tools
• look in your past figures, look in your industry’s figures, look into other industry figures, and challenge your forecasted figures
• Never forget to save money when possible, but conversely never forget to spend money when needed
• R&D is a must-spend
• consider alternatives, enhancements, adjustments in your financial processes together with your financial team (visualization tools can help a lot when properly set-up)

TAILORED DEALS

A good deal is one that allows both parties to move forward with their respective ‘company purpose’ and with their strategy. I don’t believe in unbalanced deals: they are short-sighted and they backfire. 

A win-win deal is not only about the line at the bottom. It takes into account the rates used, the margin generated, the quality expected, the delivery of the assets, the relationship created, and the daily ‘workability’ of the agreement terms… Your team will have to execute, so make sure that what is sign is what can be achieved. With passion and ambition of course, but keeping a dose of pragmatism in the mix.

What to do…

• assess and renegotiate deals that wouldn’t be win-win ones.
• find new clients or new partners that will blend well with your company purpose
• negotiate all deal terms with the thinking about daily repercussions as well as financial expectations.
• pay attention to all the contract terms and their legal repercussions: from the first draft to the signed contract, too often the deal details are neglected: beware the ‘contract template’ effect.
• Yes, I’m sure you have great lawyers, but your lawyers don’t really know your companyand your business as well as you: they cannot adjust and tweak the deal the way you can!