Continuing our series on practices that contribute to Google's success and how we can apply these to just about any working environment, Edwin Miller, CEO of The Intersect Group, shares the importance of building a profitable model.
After talking about the ninth Google principle, it is now time to elaborate on the eighth Google principle. We all need to build a profitable business model both personally and professionally. We should always live within our means both personally and professionally, while reaching to achieve our best. Stretching ourselves should never be by living in debt up to our eyeballs or raising capital where we can never produce a solid return. We should raise capital thoughtfully, deliberately and realistically.
Google has done a tremendous job of building value for their shareholders for many reasons but having a growing and profitable business is a key component. Sure, they raised capital. Yes, it took time for them to find their way to new media. In the end, they have a highly profitable model with a compelling value proposition. Their revenue model is sustainable, even in the face of inflation and the speed of research and development. They have found a path to a low touch, high volume and high margin business model. This equates to a great free cash flow business. They can afford to invest in other areas for growth. We all need to afford ourselves and our businesses the ability to invest in new areas of growth.
That stated, we should guard our brands against making a bet we cannot deliver on. Yes, we need to take risks and challenge ourselves, but that does not mean stepping on a field where we know we cannot compete. It means playing the game we have chosen to the best of our ability and building a great foundation on which we can stand upon. This takes time, patience and in the case of Google’s model - a bit of good fortune and market timing.
Google saw the market, developed a strategy and grew their brand in a way that continued to accrete value. The bottom line is that they were in the game on a daily basis. They played hard, followed a set upon strategy, took risk and built a profitable model on which their brand has become a giant. Let’s do the same in our personal brands and business. Are you working to create a profitable model at your company? What about your roles – professional and personal? It takes time and dedication to achieve success.