The 8 Traits Of Great Companies




Great companies all have a common thread that runs through them. And its not just one thing that makes them great either. In reading this article, you’ll see the things that make them great every single time. The basics you’ll find are related to money management, markets, products and finally management its self. You’ll know the signs that make a great company and learn when to recognize a great one, and avoid the losers.

Products And Markets: Products and markets are important because without them, there’s nothing to sell. The first trait that great companies have is a great product. Their products solve a problem, are relevant and are have a good price point. The second trait is markets.

They know how to pick the right markets. If their market is too small, then the revenues wont sustain their efforts. Too much competition, and it might be too costly to enter that market. But products and markets are just part of the story.

Margins, Revenues, Cash and Debt: The third trait is growing revenue. By having increasing revenues and earnings, you know a company has life. Its alive and the market is buying its products and services. The fourth trait is that they have cash on hand. With Cash on hand great companies have the ability to seize opportunities as they come. Even as competitors are shrinking, the great companies are pressing in and growing with their cash.

The fifth trait is that they have low debt. For any company, this shows that they know how to manage money properly. The sixth trait is rising margins. Its not enough to make sales. A company can go broke with a high amount of sales but no margins. Great companies have growing margins. This is where they get their cash from.

Good management: The seventh trait of a great company is good management. It takes good leaders to control debt and margins. But they have to also be good at finding the right markets and developing the right products. Good management is balanced management.

The eighth and final trait of a great company is that they put principles before profits. Great companies are able to make the right decisions about money, products and markets because they have the right principles.

Great companies don’t just get to where they are by accident. It takes leadership and management to know the right places to focus on. With the traits of great money management, people management and product management, any company can build its way to greatness.

About the author:
Dr. Fortie is a marketing consultant and business blogger. He writes for a non-profit online business administration courses blog, which is used by people who want to learn what a business administration degree is.
My website is at: http://www.administrationcourses.net


  

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One Response to “The 8 Traits Of Great Companies”

  1. Steve Skrlac Says:

    Good blog post. I must say that I especially agree with the point you raise about good management. As a business broker in Canada, I see it all the time where two remarkably similar companies will be so different in their levels of success and profitability. It usually boils down to the company leadership.

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