In the business world today, I have experienced, read about, and heard about way too many companies that are not being run the right way. So you might be saying that there is no one 'right way' to run a company -- and this is true. However, running a company the smart way will always be the right way. The smart way will never fail you. And too many companies are not being smart.
Why? There are a few reasons for this...
With the exponential growth of tech and start-up nation, the corporate climate has changed. Young CEOs and Founders have all of a sudden been hoisted into the spotlight with companies under their watch being valued at millions, if not billions of dollars. While these young CEOs have created useful, creative, and fun solutions for the modern people, many have not been alive long enough or have not worked in a professional culture long enough to understand the nuances of building and managing a well-rounded, successful company. Forget managing people (see below).
Greed. Too often, making the most money in the least amount of time seems to be the goal. Yes, you might have investors to please, you may be following a strict timeline based on your business plan, and the list goes on... Whatever the case may be, greed should never cloud judgement. Remember it's not a sprint; slow and steady wins the race. Ok, maybe we don't want slow in business. Let's change slow to smart (for the purposes of this piece) -- smart and steady wins the race! I recently heard of a young company - less than 5 years old - who had physical offices in 3 cities, 3 of the most expensive cities nationwide, no less. And guess what? This company was forced to close 2 of those 3 offices. Now this company is forced to work backwards, essentially starting from the beginning again -- only with added costs this time around. If this company had started with no office, or even one office, with team members working remotely (assuming national coverage was necessary), and then grew to the point where finances were strong enough to warrant more employee salaries and rent for an office location, then it would not be in the situation it is today.
People are also losing the ability to manage other people. Weaker interpersonal communication skills thanks to a dependency on technology combined with little loyalty to employers nowadays result in fewer managers being able to manage well and effectively. The best managers and teachers I've ever had were those who inspired by doing. They were intelligent individuals who listened, understood, empowered, and motivated. The worst managers I've ever had were uninvolved, too afraid to act and to make change, micromanaged and were uninspired. Forget company operations, finances, and everything else that goes into running a company, managers are not taking care of their own in the best way possible. Managers must realize that if they are properly knowledgeable, involved, supportive, and act when necessary, that those whom they manage will 'pay them back' ten-fold in a productive, positive, and involved manner. It pays off to manage people well. It also pays off to identify and effectively manage stronger team members -- and in a different way, identify and effectively manage weaker/weakest team members to lift them up.
These are just some of the main themes I see as recurring stumbling blocks to well-run companies. In the fragrance and beauty world, especially for smaller, younger companies, the biggest issue is that there are those that are knowledgeable about the intricacies of fragrance and beauty and then there are those who have a strong business sense -- but there's no bridge to connect the two areas. This is where Royal Grey has been successful. We've carved out a specialized area with a huge need, and our clients have grown to become stronger with a better foundation because of our services. It's all about getting the basics in line to position yourself for success in the future.