As a business grows and you hire more experienced personal who are focused on optimizing your business practices, do not lose sight of your business principles. They are your lighthouse during the storm and keep you on the right path.
Principles and practices are both crucial in the growth of a business, but they need to be managed correctly.
Business principles are the core beliefs of the business: why you exist, why you started, and what you stand for. They are what separates you from your competition, and what sets your company ethos and culture.
Business practices on the other hand are the processes and systems you use to get the job done. Practices can change over time and are often improved to increase results.
The common mistake is founders hiring new, experienced executives who come in with a system mindset and can focus too much on practices without taking into account your core principles. Principles may slow you down at times, but they need to be followed to stay true to your founders.
A great example of why you need to stick to your business principles is a story about a business owner who decided to be generous and give his business to his staff. He was moving on in life and decided to leave his business to the staff who had helped him build the business.
While it went well for five years, it soon came under trouble. So much so that the original owner was asked to come back to save the business and the staff’s livelihoods.
When he looked at what the cause of the business downturn, it was because a few of the owners had not stuck to the core principles, driven by profit greed.
Principles are at your core and need to be honoured no matter what.
Your business principles need to stay constant throughout. You as the leader need to be clear about what your principles are and ensure that everyone in your organisation understands these principles.