Although profitability is often referred to as the bottom line, the truth is that the bottom line is more than just short-term profits. There are other elements that contribute to the long-term success of a company. This is especially true with companies that have been in business for decades and have shown significant growth over the years. The following are four major areas that contribute to the bottom line.
Companies with both long-term profitability and growth always demonstrate realistic goals for profits that can be achieved year after year. This type of business is not a flash in the pan. They do not show spectacular profit numbers for a short period of time, only to seemingly disappear from the business world. This type of sustainability is based upon good market research that produces realistic expectations for the company. Long-term success means projections for future growth without exaggeration.
The employees of a company are critical to the long-term success of a business. When you study the patterns of behavior and the policies of businesses that have shown success year after year, one common element is a focus on employees. Successful companies can point to people who have worked for the company for many years. Often people will spend their entire working career with a single company. What creates this type of loyalty is the way employees are treated by the company. Employees that are treated with respect, in return, will respect the company. In time, a strong bond of loyalty is created between employees and the company. This contributes to the sustainability of the company due to efficiency, productivity and creativity of a company’s labor force.
A successful business builds trust in the community by working in ways that benefit those living in the same area that the business operates. Over time, community members see the results of the decisions made by the company, and the positive contributions made to the community. Obviously, jobs are at the top of list for community members, but a business will also contribute to local events and charities as well. A successful business is one that will build deep roots in the community and become a part of the community
The local environment is becoming more important now than it has been in years past. A successful company always takes a long-term view of the environment. A company will dispose of chemicals and other dangerous waste products in a responsible manner. The environment is never made worse by the presence of a successful company. In fact, many companies today are taking the importance of the environment a step further and are leading the way in recycling and the use of renewable resources. They are helping local residents by supporting and creating recycling programs that everyone can participate in. They are also working to restore areas of the environment that have degraded over time from unplanned development, while they continue to protect areas of the environment that they have influence over.
There are companies that can be found throughout the world that have the four elements listed above, and they are examples of companies that were started with these elements in mind. Their company philosophy kept the business on the right path that led to becoming a success story that has lasted for many years. One example of this type of company is RGE, led by Chairman sukanto tanoto.
Image credits to : Chris Potter