Over the years I have met and worked with business owners, directors and many entrepreneurs. They are well-educated and some even can boast considerable experiences to shout about. They have the money, the education and even the experience. They surround themselves with the best people that their money can buy so that they can be presented with the best formula for success. The objective is to make sure they get the best deal, meaning to get high yield profit from their investments with the lowest risk on their part. Of course they have won some and lost some. They will never reach this level in their lives without winning, failing and learning. But in their money building journey and figuring out the best formula for a guaranteed success, one thing I have observed that always get missed from this mathematical formula of making money…and that is people.
People for me is the missing value in the equation to spell out success. Businesses will never be formed let alone be a success without the right people. When I say the “right” people I do not mean the best accountants, the best marketing minds, or even the best managers. What I mean by “right” is how we treat people. How we work with them and treat them as the most valuable asset in our businesses. They are the most important, the most valuable factor in the mathematical equation of success.
Many would say, “Yes! Yes! Yes! I am with you on this and I believe this is true”. But if we truly believe this, let me ask you this…why is it that the staff are the first one to be cut out if we are not reaching sales target? Why is it when we increase the product prices due to the increase of cost on raw materials we never increase the salary and wages of staff and even make great effort to keep it as low as possible? Why is it that company will never spend anything extra on staff but wanted the staff to do more and beyond for the business? I can remember hearing this from a businessman before, ” keep their salary just enough for them to stay and just low enough for them not to leave”. How small we see the value of people sometimes that it makes me feel leaving this business world and going up the mountains to live a peaceful life.
You know those business formula where they account 30 percent as cost and the 70 percent as gross profit? At times they change it to 40 percent cost and 60 percent gross profit. Look at the percentage of profit. It is proven time and time again that in difficult business situations it will always be the staff that gets cut off and reduced but never the profit.
Show me a business that has high staff turnover and I will show you a company that does not treat people well.
If you want your businesses to be successful, invest on your people. Give the best training money can buy, offer them the highest salary in the market, offer them the best bonus schemes, and just treat them well like family. If you are successful doing this, then you have the formula for business success. People makes the business. Without them you just have an empty shop, quiet restaurant, and vacant rooms in your hotels.
Until then, build your people first before building a business. Keep treating your people “right”. When you get the people right, you get the business right.