There are 8 Primary Internal Practices every company must have to achieve success, the First Primary Internal Practice is the Executive Office where the CEO, President and their support staff reside and from which your company is managed. This team leads the company and when they have real passion, perform their duties properly, understand what Good Corporate Governance is and live by it, the company will flourish and grow rapidly while consistently achieving approximately twenty percent Net Profit or more. In the early years of the company it needs to grow at least One Hundred Percent and preferably two hundred percent or more a year.
You may be asking how do I accomplish this? Let me lay the foundation, so you will get the greatest benefit from this training. Do you know that Gallup spent forty-six years researching what creates the drive to pursue the career you have chosen? In this research they discovered approximately two-point five percent (2.5%) of the global population has the Entrepreneur gene. The proof of this fact, is in the USA there are over three hundred and twenty million (320 million) people and there are approximately eight million companies which is approximately two-point five percent (2.5%) of the population.
The good and the bad of this fact is there are only approximately Forty-eight thousand of these companies that are generating nine plus (9+) Figures of Gross Revenue. There are approximately three million companies generating Six Figures of gross revenue and another Three million companies generating Seven Figures of gross revenue with another One Million Five Hundred thousand generating under twenty-five million dollars of gross revenue with the remaining five hundred thousand companies generating between Twenty-five million dollars and Fifty million dollars of gross revenue and about Thirty-five thousand companies generating between Fifty and One Hundred million of gross revenue and the majority of all these companies are lucky in they are achieving Ten Percent net profit.
Why are these results so dismal? Because entrepreneurs think they know more than they really do!
Have you heard of the WSJ Billion Dollar Start-up Club? The entrepreneurs who found and grow these companies know all about the Eight Primary Internal Practices we will discuss in this sequence of articles and these will be followed by another set of articles that will explain the Four Primary External Practices every company must have to achieve Massive Success which includes all the companies in the WSJ Billion Dollar Start-up Club and numerous other companies that are part of the Forty-eight thousand companies that generate Nine plus figures of gross revenue. Now take out the Fortune One Thousand companies and you have Forty-Seven Thousand companies that are generating Nine Plus figures of gross revenue.
Have I got your attention? I hope so, because everyone of you that learns the lessons, I will share with you in this series of blog posts, will soon realize becoming a Nine Figure Company is within your reach. You just need to learn the lessons I am teaching you.
Let’s start with helping you learn the difference between a President and a CEO. When I started in business in the early seventies, no one called themselves a CEO. We were all Presidents and proud to be Presidents. Social Media came out and started mentioning C-Suites and CEO’s and uninformed entrepreneurs thought it sounded cool to be called CEO. But they don’t understand or know what a CEO does.
Let’s start by explaining what the President’s real responsibilities are. The President is responsible for all the company’s Internal day to day practices. This means the Seven other department heads for Marketing, Sales, Operations, Finance, Human Resources, Information Technologies and Quality, all report to the President and the President is responsible to make certain everything each of these departments is doing, is creating synergy for each other. This is referred to as Being Responsible for All Day to Day Activities of every department. It is important to remember the Eight Primary Internal Practices are required by every company and some companies have additional Practices because of the nature of their business and No Company can achieve profitability and success without all of the Eight Primary Internal Practices.
When a company is small, generally under Forty million dollars ($40M) in annual revenue and depending on the business model of the company, it could be as high as under Seventy-Five million dollars ($75M), the President often wears more than one hat. And hopefully that hat has some affinity to the Presidents Five Innate Genes that drive the President to build the company that is being built.
What is the difference between the President and the CEO? The CEO has no involvement or responsibility with the Eight Primary Internal Practices. The CEO looks outside the company and is responsible for finding and building strategic alliances. These alliances can and do take many forms and includes, getting on speaking platforms where the company receives good Public Relations, potential alliances and or partnerships with other and hopefully mainly larger companies that will benefit your company’s products or services.
Some of the most important people in the company are the executive assistants to the President and the CEO. It is important for the President and CEO to each have their own executive assistants, because no one assistant can do a great job for these two Executives as their needs are very different.
Until Next Time …