According to the Small Business Development Center, small businesses in the construction industry have the second highest failure rate of all industries. Furthermore, these rates are relatively consistent over time. Consequently, year-over-year economic factors do not have much of an impact on these small business failure rates.
Chuck Miller Consulting’s mission is to increase the survival rate for those small businesses by providing them with the knowledge, tools, and coaching they need to survive and thrive.
Six Elements Necessary To The Success Of Any Business
NAHB’s “Business Management for Building Professionals” teaches that there are six elements necessary to the success of any business.
Purpose – the baseline for all you hope to accomplish in the future
Purpose defines what you want to do, what you want to achieve – your vision. It gives direction to everything you do. It communicates your priorities to everyone who works with you and focuses everyone’s energy and commitment on what you want the company to achieve.
Planning includes setting long-term and short-term goals, developing strategies, and outlining tasks and schedules to achieve your vision.
Process refers to organizing the business. It defines how you want to manage your business, choosing its legal form, developing an effective workflow, setting up systems and procedures, and gathering the resources to implement the plan — all so you can achieve your purpose and the goals you set.
People are the human capital needed to help you run the business. Once you have outlined the company’s purpose, developed your short- and long-term plan and identified the processes necessary to run your business, you can determine how many people you need.
Performance is about ensuring that the resources and processes you have put in place work together effectively to meet your goals. It Includes use of effective management skills as well as tools for tracking progress. It’s about running the business so it doesn’t run you!
Progress is about evaluating results. Evaluation tells you whether you are reaching the goals you set in your plan. It’s an ongoing process so you can make adjustments to systems, people, or goals, as needed, as you go. What gets measured, gets changed.
Although not one of the six P’s, Perspective is the ability to see in all directions, to consider all components.
A working business plan addresses all of these elements.