For the past 52 years, Bob Bethel has helped owners revive and reorganize their struggling businesses. The most recent tally of companies he has strengthened is officially 77 and counting.
In his work with so many different companies, Bethel discovered and developed universal principles of business. These principles apply regardless of the type or size of business.
All business, no matter the status, can apply the same basic principles, according to Bethel.
His new book, “Strengthen Your Business: Fail-proof Strategies from the Man who has Rescued 77 Businesses,” explains how.
Principle one is simple: “Don’t Complicate Matters.” Business owners learn the most when they ditch textbooks and talk about business principles based on their own experiences. That may mean not even discussing financials initially, Bethel says.
“Oftentimes, a business owner is compelled to introduce unnecessary complexity into his business,” he says. “I’ve learned that a person’s greatest strength is often their greatest weakness.”
Frequently, in both large and small companies, a business owner wants to validate his own intelligence, Bethel says.
Principle two is to “Leverage Your Greatest Asset—People.” Too often, employees are underutilized and disconnected. This creates a culture of poor communication and distrust. “By keeping team members in the dark and allowing them to fill in the blanks you make things worse for everyone,” Bethel says.
“When people are invested in something, they’ll do whatever they can to help steer it away from failure and toward success,” Bethel says. “A good plan tells you who’s doing what to whom [job duties], when [timing], and for how much [cost].
Principle three is “Make a Plan.” Turning around an underperforming business is a journey filled with exciting possibilities and new challenges, Bethel promises. “Your plan is like a roadmap to help you navigate the ups and down.”
Unlike many plans, one devised by Bethel includes breaking the standard 90-day plan. Instead, he plan is divided into 30-day plans and, finally, weekly increments.
Principle four, “Turn on your Headlights,” explores how traditional accounting methods may be holding your company back. Reports in business are usually P&L, balance sheets and cash flow statements. Bethel calls this “taillight accounting.” They allow for reading financial reports that are 30 to 60 days apart and outdated before they are read.
If you don’t know where you are or where you’re going, how will you keep from going off the cliff, Bethel says. You need to turn on your headlights he advises.
Principle five is “Cut Expenses to Prosper.” He frames it as a universal truth: Profit determines success or failure. If the revenue doesn’t exceed expenses, your company will eventually fail. It’s so basic that many businesses fail to keep it the spotlight.
Principle six, “Think and Act Like A Leader,” is the most eloquently and insightfully written. The challenge of leadership is that none of us is born with the skills needed to lead a business,” Bethel says. “When you adopt the right behavior and have a heart for people, leadership will come easily. People will want to follow you.” He describes how innate leadership skills can be developed and includes numerous examples sharing how an average worker can become a true leader.
Take for example the co-founder of Hewlett–Packard. Hewlett with his background in engineering initially thought he was unprepared to lead the company.
He quickly proved himself wrong. He then deliberately set out to become not just an effective CEO, but also the most effective leader he could. He focused on intentionally developing his leadership skills as the company grew.
Bethel doesn’t work only with established companies but also with small and medium-sized organizations.
He believes these are the lifeblood of the economy of every country, not just the United States. By adopting the right mindset, the right approach and the right leadership, businesses will prosper.