The customer remains key but, says Tony Byrne, managing director of Wealth & Tax Management, business success to day is about so much more.
FAST food restaurant McDonald’s founder Ray Kroc once said: “Look after the customer and the business will take care of itself.” I am not exactly sure when he said this but it was probably in the 1970s. Obviously, times have moved on a great deal since then.
Today it is no longer a case of simply looking after your customers. It is far more encompassing than that. The most successful businesses globally look after all of their stakeholders, not just their customers. Stakeholders also include suppliers, employees, shareholders, the environment and the community. Such a stakeholder-inclusive philosophy has been proved to work in the book Firms of Endearment. Such businesses outperform their peers by two per cent a month, meaning that they double in value every three years.
Quite a remarkable feat, I am sure you will agree.
One interesting revelation in the book is that by looking after your staff very well by paying them above-average salaries, providing generous benefits, plenty of training, flexible hours and so on, your business became far more profitable. At first sight, this appears counter-intuitive. How can you increase your costs yet increase your profits significantly?
The reason for this is because you have highly trained and loyal employees. This saves your business a huge amount of money in terms of recruitment, training and productivity. Well-trained and experienced employees are far more productive. Less advertising is required because customer service is so good, customers become more loyal and they in turn become your greatest “word of mouth” advocates to new customers. It is a virtuous circle.
So if anything it is a case of looking after your employees so that they look after your customers. A far more modern approach than Ray Kroc’s, in my opinion.
If you are interested in advice on how to run a more successful business, why not take advantage of a one-hour Discovery Meeting either at our offices or by a video conference call at our expense worth £270 to each of the first three readers who contact us before 30 June 2022? You know it makes sense. We offer a great cup of coffee too but unfortunately not a virtual one. Ring us on 01908 523740 or for free on 0800 980 4516 or email firstname.lastname@example.org.
- The contents of this article are for information purposes only and do not constitute individual advice. You should always seek professional advice from a specialist. All information is based on our current understanding of taxation, legislation and regulations in the current tax year. Any levels and bases of relief from taxation are subject to change. This article is based on my own observations and opinions.