Firstly, growth opportunity is the essence of a high quality business. Growth opportunity means the chance and potential for a business to grow after the exclusion of all the company cost and expense.
The equation is Excess Return On Capital = Competitive Advantage
A great company would not only focus on making profit but more importantly providing service to their clients.
A company structure can be stated as below:
Financial outcome is the surface of a company performance for people to judge, it is the result of business’ sales performance. The foundation is the structure of the team and the management process.
1. Management
A good entrepreneur would like to do business beyond the money, and more for personal achievement. Therefore, providing the right incentives
• Ambition
Having a right mindset of business ambition is foremost. Ambitious account has strong influence and can make difference when it comes to decision making. Only when the leader or the person in charge of the company is ambitious, the potential of continuous growth of the company can be persuaded.
• Ability
In general speaking, when talking about a person’s ability for work performance, it usually means 10% of talent plus 90% of effort. From business perspective, talent pool is worth a long-term investment with ongoing training.
2. Team
There are two types of team structure are commonly successful in business environment
• Leadership teams
A main leader with few back stage supporters to form a team. The advantage for this type of team is all the supports have the right to supervise and restrict the overpower of the leader.
• Self-management teams
A group of people sharing same goals work together. This form of team is often recognized as one of the most efficient team type for better achievement as everyone in the team are equally empowered and contributing.
3. Business
When we do business analysis, both internal and external factors are needed to be equally considered.
• External
Industry growth and cyclical fluctuations can both affect the company growth and future. Periodic fluctuations may lead the changes in the market capacity in the short run. Also supply fluctuations could affect the profit margins.
• Internal
In order to better understand company’s standing point, making a competition full figure is the essential first step to guide the analysis. Besides, throughout its market positioning, the profitable target customer and competitive advantages can be seen more clearly. Providing marketable products, focusing on cost efficiency, and brand and channels management are all parts of competition highlights.