The Most Important Business Concept I've Learned
IF YOU BOIL IT DOWN
The most important business concept I’ve ever learned can be condensed into one sentence:
Everything has a process and you can improve it.
Now that may seem very vague and broad (and obvious)
But let me show you how I arrived to that conclusion and how it has empowered me to be able to create any process within any organization of any size with any product in any industry – if I wanted to.
STORY TIME
I grew up in the direct response marketing world (in my career – I’ve been privileged with the responsibility to oversee millions of dollars of monthly ad spend online)
In that world, you have to have clear measurable goals and actions that people take to move along your marketing process.
With this line of thinking (figuratively and literally) every action has
- a measurable outcome
- opportunity for improvement
In the online world, this looks like a “funnel” (a series of steps someone takes in your marketing – to become a lead, book a call or buy a product).
Those steps can be measured and they drive a positive business outcome.
Here’s an example:
– Someone sees your ad
– Click the ad
– Sees landing page offer
– Gives you their email
– Sees a video to book a call
– Books a call
– Shows up to the call to
– Becomes a client
Now, there are many variables to making this process happen profitably – but that is outside the scope of this essay (ask me if you’d want me to write about these variables in the future)
The big lesson is every action can be measured and optimized.
WHAT THIS MEANS FOR YOU
If you focus on measuring every action your company takes to generate a desirable business outcome (there’s typically no more than 9 from sales to client success to team success), you have control over the success of your business.
Business is simple. Not saying it’s easy, but it’s pretty straightforward.
To recap:
- Actions create a measurement
- Actions are attributed to a result
- Actions can be optimized to achieve a better result