For many years we enjoyed low-cost capital. As a result, many companies grew without having the pressure of applying basic and fundamental principles of building sound organizations. The ideas of “Growth at all costs!” or “Topline matters most!” were commonly subscribed to… and it worked. They didn’t just work, they provided tremendous wealth for many in completely different industries. This viewpoint was hard to avoid, but now, we have experienced extreme volatility and shifts within the markets in a very short span of time.
It’s time to revisit what these fundamentals are. In broad terms, good businesses are built on the foundation of understanding four core principles:
- Why do people buy your product or service?
- Who are you as an organization? (Core Values)
- How do you measure success?
- Where are you headed? (Vision)
As someone who has advised many fantastic companies who have seen substantial growth during these periods of low interest rates and high customer demands, I found it important to identify the upcoming headwinds, by focusing on the fundamentals during the hard times. This means revisiting the fundamentals that are applied to create a company whose products or services are desired by consumers. As much as it is of “going back to basics,” there is nothing basic about them! Sound, foundationally prudent strategies consistent with company’s well-defined vision, mission and core values are the best way to thrive in this season within the markets. By focusing on the core fundamentals, we create the highest value for stakeholders.
