How do we measure the success of an authentic business?
In this post we’ll explore the different success formulas, and how that can inform our priorities and strategies.
The basic success formula for a conventional business:
In other words:
Make the most amount of money with the least amount of effort.
This means squeezing as much profit as possible out of each customer, and to gain as many customers as possible… all of it done with the least amount of work possible.
With this core mindset, it’s easy to fall into schemes that are money-driven, to the detriment of one’s values and community.
As people try (and fail) with securing fulfillment and personal sustainability by conventional business measures, they might then overcompensate, and swing to the other side: they become interested in building a non-profit.
The basic formula for non-profits:
How to make the most mission-driven impact, with the donations given? That is the key priority of non-profits and it’s a laudable one. (The factor of Effort isn’t often taken into account. In most non-profits, people work really hard for relatively little pay.)
Yet, some non-profits still get into trouble by inflating their impact numbers or going about their mission in ways that compromise the well-being of workers or society.
Authentic Business aims to be a middle way between these two extremes of conventional business and non-profits.
The basic formula for the success of an Authentic Business:
Impact multiplied by Values
Prices multiplied by Effort
In other words, how can we maximize two things:
(1) the impact we make with our business…
(2) that’s aligned with our values?
In the process, how do we minimize two things:
(3) the prices we charge
(4) and the amount of effort?
The ideal authentic business charges the lowest prices possible to stay in business, while spending the least amount of effort (in order to bring freedom to the people operating the business), while producing the greatest amount of positive impact to their clients, in line with their higher or deeper values.
What might this mean for our strategy?
If you run an authentic business, these 4 questions would be an excellent regular audit, perhaps with a business coach, or otherwise get together with a friend who also runs an authentic business, and rigorously answer these 4 questions.
I look forward to hearing how this benefits your business!
George Kao is a Marketing Coach for small business owners, especially solopreneurs such as Coaches and Mentors. He focuses on ethical & effective ways to grow one's platform and build true livelihood.
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