I love it when we win the game. I feel the rush of adrenalin. My heart pounds, muscles tense and I feel tremendous satisfaction. You may be wondering, “What game is she playing?” I’m playing the game of business.
Agriculture is like many businesses that need to predict demand for their goods and services months if not years before the sale will be made. An entire market has evolved to trade in commodities. Can we accurately predict global prices for our crops prior to seeding? If we are wrong and excessive supply drives market prices down, we might have trouble recovering our input costs let alone realizing a profitable return. Can a retailer predict demand several months prior to the season and place effective orders? If the forecast is accurate, then inventory management costs can be optimized. If the forecast is wrong, lost sales, excessive inventory carrying costs or liquidations take place.
Many business owners see business as a game. The question is whether they are recreational or competitive players. What about you? Do you play recreational or competitive business?
In the game of business, winning happens when you can produce sustainable profits after paying yourself a competitive salary. So what differentiates a competitive business from a recreational one? Just as there are many ways an athlete gains a competitive advantage, so too can business owners. One key element is the team that supports the player – the coaches and professionals who design winning strategies and also coach, providing feedback on the player’s execution. Competitive business players keep score and focus every day on achieving a personal best.
Do you have the team you need to achieve your personal best? Are you playing recreational or competitive business? Do you know how to keep score?
I believe that business is a tool to help you live the life you want to live. To live the life you want to live, you need to have a predictably profitable business that succeeds without you. That means playing competitively.