Do you know who your customers really are?
Most business owners think this is a straightforward question. They point to the people they currently sell to or the target market they wish they could reach. But if you are building a company for the long term—one that is meant to be more than just a job—you need to think bigger.
To build a sustainable, profitable legacy, you have to look beyond the transaction and focus on what we call your constituents.
There are five essential constituents a legacy business serves. If you want your growth to be sustainable over the next 20 years and beyond, you must take all five into consideration.
1. The Company
When you consider the company itself as a “customer,” you are forced to take the long view. You must operate under the assumption that the company will outlive you.
Building for the Company constituent means:
- Annual Strategic Planning: Moving beyond day-to-day fires.
- 3-to-5 Year Forecasting: Mapping out the next phase of growth.
- Vision Buy-In: When your team and customers believe the company is built to last, they are more likely to fully commit to your vision.
2. The Customers
This is the most obvious category, but it is often misunderstood. Your customers value two things above all else: stability and predictability.
As you plan for the future, ask yourself: Are we leaving customers behind inadvertently? By constantly reviewing your customer-facing systems and processes, you ensure that the experience isn’t just consistent—it’s continuously improving.
3. The Team
Most business leaders acknowledge their team is a customer, but few actually treat them like their most important customer, which they are.
As a leader, your number one job is to provide your team with the tools, training, and culture they need to succeed. When the Team constituent is healthy, they are empowered to deliver delight to your external customers.
4. The Stakeholders
Your stakeholders are a diverse group: family, banks, investors, vendors, and shareholders. While their specific interests vary, they all share a common goal: your ability to consistently and profitably deliver on your mission.
- Family: They sacrifice some of their time with you, allowing you to focus on the business.
- Financial Stakeholders: They look for a return on investment, whether through stock appreciation or timely debt repayment.
- Vendors: They rely on your long-term stability as a partner.
5. The Community
This is where your company’s employees live, work, and raise families.
If your business is to thrive long after you leave, it needs the support of the community. In turn, the company must support the community. By giving back time and/or treasure, you help build a region that attracts the great talent you’ll need for future growth.
Is Your Business Built for the Long Term?
Building a legacy isn’t about a single sale; it’s about the health of the relationships you have with these five groups.
If you’d like to learn how the ActionCOACH Business Operating System (ABOS) can help you improve your relationship with each of these five constituents, let’s talk.
Author: Mark McNulty