Principle – 5

When we say “formula” we include rules, templates, best practices, and other “cookie cutter” methods, which are simply attempts to transplant methods that worked in one business into other businesses.
Formulas make sense, don’t they?
If a rule works for one business won’t it work for any business, or at least any similar business?
If a template succeeds in one business, shouldn’t it work for another business?
If a best practice is proven, shouldn’t you use it?
The problem with formulas is not that they don’t work.
Formulas are popular because they do work.
They’re relatively easy.
You don’t have to think much about formulas, you just have to use them to imitate what others have done.
And that seems to make sense.
Why shouldn’t you imitate a formula that works?
The problem arises because your business isn’t the same as any other business, not even other businesses offering the same products and services to the same markets.
And you’re not like other leaders.
You have your own strengths and weaknesses, and they’re not like anyone else’s strengths and weaknesses.
And your specific situation isn’t exactly like the situation for any other business.
So, if you use a formula approach to developing your business, it might help you make progress, yet it won’t be ideal for you and your business.
You may even get good results, but you won’t get great results.
Formulas can help you make progress, and if you don’t know there’s a better way, you’ll be satisfied.
There is a better way – apply principles not formulas.
A business principle is an underlying business reality.
A business principle is deeper, more fundamental than a formula.
A formula is a generalized attempt to solve a general business problem.
But your problems – and opportunities – aren’t general. They’re specific.
Specific to your business.
Specific to your ways of managing.
Specific to your markets.
Specific to your products.
And specific to your financial situation.
At best, a formula will “sort of” fit your business, and at worst, it will be counterproductive.
What you need are specific solutions to your specific problems and opportunities.
You don’t want “approximately” or “good enough.”
You want “exactly right” for your business, and “outstanding” for your customers, investors, employees, and others.
So when you learn about a formula that worked for some other business, or one you find in a textbook, don’t use the formula – find the underlying business realities on which the formula is based, and apply those to your business.
We’ll help you do that.