All the big businesses or the very successful businesses live by a conduct, a philosophy that dictates the way the business runs and operates. A philosophy is mostly associated with teachings from old ancient mystics and intellectuals that directly and indirectly affect the way we live today. Thus to create a concept or to attempt to create a business philosophy, how does the entrepreneur come around doing that? Mostly important, how does the entrepreneur come around creating a business philosophy that will create an immortal company?
When one reads about Ray Dailo, Steve Jobs, Elon Musk and so forth, it is clear that these legends aimed at creating companies that could remain eternal for all ages. Steve Jobs admired how HP was a company that went from the garage to being one of the world’s leading technological companies. The car manufacturer, Pagani creates art on wheels. One thing that can be seen from entrepreneurs who have etched out a portion of the universe for themselves is that, profits is not the bottom-line. Yes, a business strives on profits and shareholders care more about their returns based on the profits that the business make. However, companies that stand the test of time, their goal is not about profits. It is always about something more.
Profits is a reflection of a company’s financial performance. When one looks at many businesses and business textbooks, the way to make profit is pretty much simple. Sales at low costs will create your profit. However, don’t we want to create something more? We read about the Sean Carter, Bill Gates and so forth and marvel at how they were able to completely transform their respective industries. The legendary car manufacturer Aston Martin is one company that has had very tough financial woes over the years. In fact, one did not know about these woes until now where one is interested with the behind the scenes of these iconic companies. Here is Aston Martin: creators of one of the world’s beautiful and best performing cars; has cemented itself in the fabrics of the universe. Yet this company battled for a great deal to generate profits.
The same can be said for another legendary car manufacturer Lamborghini. Until Volkswagen bought it, it too experienced great financial woes. Yet Lamborghini also released many of the world’s most iconic cars of our time. The driving force behind these companies is what helped these companies become immortalized in the history books. There can never be another Elon Musk or Pagani. The world today does little to encourage lasting businesses. The media puts forth wealthy entrepreneurs who are successful in their own respect. However, what lacks from most modern entrepreneurs is that most are merely after the profits, not the legacy they'll behind.
Apple, when Steve Jobs left, went into a terrible stage in its operations. Steve Jobs comes back and Apple begins to flourish once more. The fact that Scullery was concerned with profits and maximizing each division of Apple must be a lesson for the modern entrepreneur. Steve Jobs was a perfectionist who was able to marry art and technology. This drive to create extremely beautiful yet highly powerful technology is what established Apple to be what Apple is today. One could point out that Jobs was very entrepreneurial and very cognizant of the need to make money. One could also point out that with the money Jobs made; he enjoyed the finer luxuries in life in areas he enjoyed. It is pretty much a hard argument to debate because he did enjoy items that the average person can never afford. Even an Apple product, most people go to their graves having never bought one. Above all that, the fact remains: Apple will remain one of the world’s most innovative and advanced companies of all time. Apple has made a huge dent in the universe.
The business philosophy of Apple and the business philosophy of a company like Bridgewater Associates is what make these companies stand out. Ray Dailo highlights his philosophy in what he calls Principles. With these Principles, we get see how one of the world’s biggest hedge fund company operates. Interesting is the fact that these Principles occurred over time. Ray Dailo constructed these Principles over the years he ran Bridgewater Associates, while making mistakes in the process and learning from them. Therefore, one could say that a business philosophy to be immortalized needs time and patience. In addition, a business philosophy can only stem from the company founder. It is the task of the founder to ensure that this philosophy infuses within the workplace and importantly, the workforce as well.
When it comes to business philosophies, entrepreneurs that create eternal business philosophies do not compromise. Even if it means a reduction in profits or an out lash from the media, the philosophy of the business stands. The latest example can be seen with the recent Nike ads, especially with Colin Kaepernick. Powerful is the ad with Colin by Nike. It speaks directly as to what Nike stands for. It is reported that some “die hard” fans of Nike after seeing the ad took to the streets and burnt their Nike products in protest to the ads. In the same breath, Nike sold more products it had in some time after the ad was aired. The business philosophy was able to wash out the rot (in both customers and sponsors) and generate a new generation of stakeholders who stand along with Nike and what they stand for. Obviously, in board meetings, profits and future projections are discussed and it is business as usual. However, for Nike to be what Nike is, the workforce cannot for one moment deter from the driving force that led Phil Knight in starting the legendary company.
In South Africa, we have very few companies that are immortalized in this fashion. One would say local companies such as Shoprite, Spur and so forth are infused in the culture that make South Africa. When it is someone’s birthday, likelihood is that the person will be sung a happy birthday song at Spur. If you are an athlete and you are extremely focused on building your body, then it is very much a possibility you have used USN in one stage of your bodybuilding career. There are companies that we can count that will be legends in their own right. There are South African companies that have made a significant dent in the universe with their philosophies but it is sad that there is not a lot of them.
The need to create a business backed by a solid philosophy is as important as to create a business backed by a vision, a mission and objectives. Any company can create a 10-year vision, a mission statement to get there and objectives to measure the progress. Yet not every company can create an everlasting philosophy that will see it through beyond the 10-year vision. That is what happened to Apple when Steve Jobs left. Apple lost its philosophy and in doing so, began to slowly plummet. It is imperative that the entrepreneur asks himself or herself about the philosophy that drives his or her business. This philosophy is what will make the company stand the test of time. This philosophy is what will make the company immortal. Like Bugatti and Lamborghini, the philosophy that drove the companies lead them being bought by Volkswagen thus allowing the companies to strive even more.
As entrepreneurs, we need to look away from operating from the point of “making money”. Anyone can make money. Anyone can get a product or service to sell and make money from it. This limited “make money attitude” is what has many black entrepreneurs trapped in the realm of SMMEs. The businesses make them good money and since this is their driving force, they end up not aspiring to anything greater. Yet with a business philosophy, the entrepreneur is compiled to grow. Like Ray Dailo, the process of learning and improving never ends thus the business philosophy never stops improving. The business continually evolves and gets better each time the philosophy behind it deepens and sinks further in the business itself.
It is this creation of the business philosophy that makes a business last generations, not the profits. It is the entrepreneur’s ability to continually improve on the philosophy to grow the business. Microsoft focused on creating compatible software and continually improved on their software product offering. Microsoft did try to make hardware for itself but did not succeed so well in that regard. Because hardware design was not in the philosophy of Microsoft. Many companies divert from their core purpose and by doing so divert from their philosophy. This usually leads the company into complete ruins. It is clear we understand that we discussing business philosophy and not product or service offering. For indeed, companies have changed their products and services and have succeeded. BMW originally did not create cars but it is known for their cars. The philosophy of BMW ushered it into creating the beautiful cars we know today. Interesting is the fact BMW also went to great financial problems but was saved by a wealthy German family that appreciated the sophistication of BMW products. Sophistication that could only have been created by the driving philosophy behind it.
The time of us entrepreneurs to think of business philosophy is critical. If one seeks to grow a business, there a several strategies they can use. If one seeks to save a business from ruins, they can use several turnaround strategies. However, to create a business philosophy that will immortalize their businesses requires a bit more effort. It requires one to ask themselves how do they intend to dent the universe. At the end of the day, isn’t that what we want? A company that can be positioned right next to Apple, Microsoft and Facebooks of the world? Why do we aim only at the stars when there other worlds we can reach? Do we want to be a ripple in the ocean of time or a tidal wave to forever change the landscape we live in? This is the question that differentiates the moneymaker from the legacy creator. Money is material, philosophy is not. Anything material can be replaced, thus forgotten. Why do we continue in the spirit of creating the replaceable? Why do we invest so much energy into that, that can be forgotten?
The business philosophy is the cornerstone we need to build our businesses on. It is important we ask the question as to why we beginning the business in the first place. Why are we using the ability to create, to create the business? The force of creation is immaterial thus when harnessed effectively can become unforgotten. Creation is seen more clearly in music, literature, poetry, art and so forth. Music as old as Nat King Cole's can still be listened to even today. Such music stands testimony to the wonderful force of being able to create. As entrepreneurs, we are artists in the art of wealth creation. We can choose to make art that can be replicated by millions or we can be the Picassos of our industries and aim to create that which can never be replicated. Even if a poser were to try, that poser will fail to capture the grandeur of your work. This is the power of building a business from a philosophical view. It is time as entrepreneurs; we re-think how we sculpt the world of business.