Entrepreneurialism drives profit, but you need more than this to maximise capital value
Managing Director of growth partner Champions (UK) plc, Matthew Hayes, shares his expert insights into why entrepreneurialism is crucial for driving profit, and also into the importance of additional strategies in order to maximise capital value
The E2E Profit 100 Track rightfully celebrates the top 100 businesses in the UK that have earned significant profit levels and continue to grow and improve.
Behind each business will be a team of highly skilled employees, with an entrepreneur leading the way to motivate the team and take the business to new heights.
The E2E Profit 100 track recognises that entrepreneurialism is more than just starting a business; it’s a mindset characterised by a willingness to take risks, a drive to innovate, and an ability to think differently.
Entrepreneurs thrive on challenge, bringing passion and determination to their ventures. These traits are invaluable in driving profits, particularly in the early stages of a business.
But, there comes a time when you need more than entrepreneurial spirit to continue growing your business – and I can confirm this from my own personal experience.
Where you may have started by working personally across different departments and aspects of your business, once your company has grown to a certain size you don’t have this liberty, and in trying to maintain control across every department you could damage your business in the process.
I found that hiring highly skilled and trustworthy managers allowed me to still maintain oversight without having to work closely within every channel; this was where I could sophisticate my business.
It became less dependent on me, and instead solid structures and processes were built. The main pillars of growth derived from implementing technology, particularly AI, and through investing in people and HR.
When your business has reached a certain size, being able to ensure efficiency is at the core can become difficult, yet this is a key factor in driving profit. That’s where utilising AI can support businesses with automating repetitive tasks, allowing employees to invest time into more creative and human-centric tasks.
Where you make savings due to increased efficiency, the ability to invest in other aspects of your business is a luxury you can’t ignore.
Through refining your processes, implementing a strong communication structure, and embracing technology, you can step away from being so heavily involved at every stage of your business.
Instead, you can support the scalability of your business, growing your operations without a proportionate increase in costs.
However, investing in your people is just as important as investing in technology and processes. You can boost the productivity of your workforce with training, career development and recognition programmes.
With a team that feels valued and supported, their contribution to the growth of your business would be greatly increased. From feeling more innovative to being more equipped to provide higher-quality work, the reasons are endless for investing in your people.
Another positive is that employee engagement should be improved, and note that businesses with high employee engagement see 43% less turnover compared to those with low engagement.
All of these factors contribute to your business saving on costs whilst improving its performance, therefore enhancing your profit levels. That’s why, despite entrepreneurialism being vital at the start of your business’ life cycle, you can’t rely solely on this.
Once your business has expanded, consider the additional factors that can support your business’ growth as you become less heavily involved in every department.
So, I want to congratulate every business and entrepreneur that has been listed on the E2E Profit 100 Track, highlighting the incredible work that has gone into growing a business to a certain size with so many challenges and hurdles to overcome.
If you require support with implementing technology and AI or people and HR into your business, get in touch with Champions (UK) plc.