The Question Every Business Owner Should Ask
Peter Drucker famously said, “The purpose of business is to create a customer.
”But many business owners become so focused on what they do that they lose sight of what they’re trying to achieve.
Consider Don’s Heating & Air.
Don started his company because he knew how to install and repair HVAC equipment. He was good at his trade and believed he could build a successful business.
Initially, customers came slowly. Don advertised, asked for referrals, and lowered prices to win jobs.
Profit wasn’t the priority. Cash flow was. He needed to survive.
Eventually, business grew. Don hired technicians, purchased vehicles, and added office staff.
Revenue increased. Profits followed.
Success!
Fast-forward ten years.
Competition has increased. Labor, insurance, and overhead costs are rising. Sales have flattened, and profits are shrinking.
Don begins asking:
• How do we reduce overhead
• How do we attract more customers?• How do we improve profitability?
• How long can we continue?
• Is it time to sell?
But perhaps Don is asking the wrong questions.
WHAT BUSINESS ARE WE REALLY IN?
Don believes he’s in the heating and air conditioning business.
But HVAC is the service he provides.
His customers are buying comfort, reliability, convenience, and peace of mind.
They’re buying TRUST.
Don must evolve from simply performing a service to selling an experience that differentiates his company.
That means recognizing that everyone contributes to sales—from the person answering the telephone to the technician completing the work.
But there’s another important lesson.
More sales won’t fix a poorly operated business.
Don needs two strategies working together:
1. Customer Strategy: Attract customers, build trust, differentiate the experience, and earn repeat business.
2. Operating Strategy: Manage expenses, improve productivity, protect margins, and deliver consistently.
And most importantly, Don must define what success means to him.
Growth? Greater profitability? Less personal involvement? Preparing to sell?
Each requires a different approach.
Marshall Goldsmith popularized the phrase:
“What got you here won’t get you there.”
The skills that started Don’s business may not be the skills needed to sustain it.
The same applies to restaurants, convenience stores, distributors, and nearly every service business.
Your product gets you into the market.Your customer experience gives people a reason to choose you.
Your operating discipline determines whether you can deliver profitably.
At Keystone Strategic Partners, we believe every owner should ask:
What am I trying to achieve, what’s preventing me from getting there, and what am I prepared to change?
Because identifying the problem is only the beginning.
The real value comes from executing the solution.
Keystone Strategic PartnersWe Don’t Just Advise. We Help Execute.https://keystonesusa.com/#BusinessGrowth #OperationalImprovement #BusinessLeadership
