Profit

The Reason for Existing so communicate it

   Profit is usually defined as the sum of your cash and asset valuation that can be listed on a balance sheet after accounting for all your liabilities. Goodwill and intangible assets, which are harder to quantify reliably, are also usually included in this calculation and result in a reported profit margin. Establishing accurate numbers and relating them back to information in the business is sometimes an exercise in what seems to be magic. Hopefully, that is not the case in your business since this may indicate that information used to help establish your value may be harder to tie to the day to day business processes.

   Profit, regardless of form, is the reason your business exists and establishing and communicating how your people impact profit is a critical factor for success. You need to make sure your people have a stake in the business. This can be facilitated by communicating how your people contribute to the success of the business, by ensuring they share the goals and values of your business culture, by making them feel they are making a difference, by sharing profit based on performance, by some combination of these or by some other means not listed. The key is establishing some linkage between your people and your business' profit making processes. This linkage helps them feel that they are connected and have a stake in the performance of the business.

   As with your people, if you can get your customers to feel they have a stake in at least your relationship, if not your business then this can help in maintaining and improving your revenue stream and therefore increase the chances of continued and increasing profits. If you can help them increase their profits then you can rest assured that they will see your relationship as valuable and work to keep it functioning well. Your Customers should understand that you and they are in a partnership and that the healthier you are the healthier the partnership will be. Ensuring that you have open communication that establishes and reinforces how each of your actions (or inaction) contribute to the partnership is a key ingredient to having a lasting and mutually beneficial arrangement.