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Is Your Business Healthy?

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Most business owners I work with want to grow their businesses. I guess this probably applies to most businesses in general. But growth for the sake of growth alone is not always healthy for a business or its people.

I’ve always believed a business should strive to be healthy rather than focus just on growth. Of course, this begs the question, “What make a business healthy?” This question comes up often for me so, I have crafted what I call my Healthy Business Manifesto.

(Before I dive in, I should clarify one point. When I use the word "business" I mean any organization that has people, money and a purpose, not just a for-profit business in the traditional sense. A business can be a non-profit organization, a school, a church, a government agency or a membership association. It does not have to be a for-profit entity.)

To be healthy, a business needs to have several things going for it. Here are the factors I would look for in a healthy business.

First, it needs to have a clearly defined mission that its owners, managers and employees understand and support.

Second, the business should have resources that are appropriate to meeting the mission. Lacking them, it should have a realistic plan to acquire those resources.

Third, each person in the organization should understand what their role is and how it fits into the overall mission of the business. They should be able to see a clear link that connects their success to the success of the organization.

Fourth, the people who own and manage the business need to understand and accept their role as resource providers. Their responsibility is to make sure their employees have the necessary resources at their disposal to be successful at their jobs.

Fifth, the business needs to generate enough profits to fairly compensate everyone involved. This includes owners, employees, managers, vendors, contractors, customers, host community and perhaps others. Anyone who participates in the success of the organization needs to be compensated fairly. This compensation needs to come from the operating profits of the organization. (Rather than from capital contributions, loans, etc.)

Sixth, the business must have a system in place to monitor the extent to which it is accomplishing its mission. It should be able to stay directed toward and course-correct whenever necessary.

Seventh, the business must be a fun place to be. Whether you're an owner, manager, customer, employee, vendor, volunteer or whomever, you should enjoy being a part of the organization.

Does your organization meet these seven standards? If not, what can you do to help your business become healthier?

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