So, let’s start with some basics:
All the wealth in the world is created by business
All the money in the world is generated by business. So, it’s a good idea for businesses to make as much of it as possible. More money equals better pay for staff and more taxes paid to government. This should lead to better lives for all of us.
Businesses are simply groups of humans
All businesses are simply groups of people trying to achieve something, and all people are humans, and humans are that special group of mammals we care for the most. Oh, and we’re all emotional…even the rational ones!
Life is complicated
Life is extremely complicated and gets seemingly worse with each passing software update. On the other hand, it’s extremely simple. The trouble with all this complexity is that...well, it's complicated, often leaving us befuddled.
I like to think in simple terms so I don’t get bogged down in the detail. Models are a great way of keeping things simple.
This is my Monergy Flow. It’s a business model, let me walk you through it.
On the left, is money. It is right that businesses make money. It’s used to pay staff and taxes. Paying taxes is important because that goes towards building the life we expect; great schools, infrastructure, health care and looking after people who can’t look after themselves.
It would be fantastic if simply wishing for money made it so, but unfortunately, business doesn’t work like that. To make money, you must first sell something. It used to be considered that you could only sell a product or a service, but I think what we’re really selling are experiences. If you think about this for a moment, you’ll realise that even the products we buy offer us experiences. The clothes you wear, the car you drive, and the phone you’re using to read this.
To sell something you have to tell people you have something to sell and that’s called marketing. Marketing is fascinating. Let’s say I’m an accountant. I could say; ’Hey there, I’m a great accountant. Do you want to buy my services?’
Now, if I’m lucky you'll say ‘Yes’. And we’ve got ourselves a transactional relationship, I sell something to you (in this case, accountancy services) and you give me something in return (money)...
...but…
…Think about the strongest relationships you have in your life. The relationships with your best friends or spouse. It’s not about what you can get from them. They are based on shared values and principles. These relationships stand the test of time, and the occasional hiccup.
What happens in the transactional relationship above when another accountant comes along who can provide better services for less? If the relationship is based on the transaction alone, you’ll switch. But if the relationship is based on shared principles and values then the bond between you and your customer is stronger and your customer is less likely to switch.
Marketing is not about ’what I have to sell’ it’s being able to say ’Hello, here I am.’
If you, as a business, can stand on the street and be clear about who you are then people who get you and are aligned with your values will come over for a chat…and be much more likely to buy from you.
The best businesses understand this, and have developed their personalities, which we call their brand. But, of course, it’s not the business that created the brand…it’s the humans who work for the business that create the brand. Everything starts with the humans.
So, if you want to make money, focus on your humans at the start of the skein that leads to money.
Once you’re up and running and making money, what next?
You should reinvest your profits back into your business. If you nurture, provide meaningful connections, and love your humans you'll have better humans, which will enhance the chain of events which leads to more money, which leads to more profits to reinvest in your business and round and up the cycle goes. I call this an upward spiral.
Nurtured humans are happy humans
A more profitable business isn't the only outcome of this model. Nurtured humans feel like they belong to the group, and are part of the future of the organisation. They ultimately feel happier. It's great to work with people you admire, respect and love.
Happy humans go home
Happy humans are not only more fun to be around at work, they go home at the end of the day and are more fun around their families too. Go home happy, positive and feeling loved and you’ll be carrying those powerful vibes right into the heart of your family, affecting how they feel and ultimately behave.
Happy communities
Happier families lead to happier neighbours, happier streets, and ultimately happier communities. So, that’s how we’re going to make more money, surround ourselves with people we love and make the world a better place. Easy, isn’t it?
Collective responsibility
Happier communities are not someone else's responsibility. It’s easy to point a finger at governments or schools and suggest that they need to do something to fix these social issues. And yes, they have their part to play, but so do we.
As humans, we must refuse to absolve ourselves of the part we play in building the society in which we live and the legacy we leave behind. We call it responsibility, but really it's our privilege.
John Hibbs is an experienced entrepreneur, having started and run many businesses. He is a certified company director, charity board member and cofounder of CoEfficient. He likes to reimagine how the world operates and is optimistic about moving towards a fairer, kinder and more just society. He lives in Guernsey, next to the beach!
