MRR or profit shouldn't be the only indicators when evaluating your business's health. Here are seven crucial dimensions to consider.
1. Positive Value
Your company should deliver significant value to its clients. Whether you’re helping save time, bolster health, or increase enjoyment, customers turn to your products/services to derive this direct benefit. This is often termed wealth in other sources, distinct from money.
Can you pinpoint your product’s unique value? Do you care about it?
2. Uplifting Impact
Through providing the product and with your company culture, your company should impact broader society in ways you feel good about. Look at the communities and countries you operate in, but think also broader.
Doing wrong with one hand and offsetting it with another does not count. Therefore, "offsetting strategies" often feel inauthentic.
Think about how your company might foster improved mental well-being, community tolerance, ecological consciousness, animal welfare, equality, and other impact areas.
Value, combined with impact, can encapsulate a company's purpose.
Are you in tune with your business's societal impact?
3. Fair Profit
While profits are self-explanatory, consider this perspective: Dedicate 15-25% of your profit to your team (besides the cofounders), recognizing their pivotal role in generating it.
4. Personal growth
Work should foster growth—not just in professional capacities like coding or copywriting but in personal dimensions, too. Aspects like emotional resilience, self-acceptance, inner power and self-belief, good connection with one's intuition, freedom from fear reactions and limiting beliefs, and many more come to mind.
Is your workplace a hub for personal evolution?
It might seem out of place in a business context, but emotional well-being is as tangible as physical health.
Emotional scars, much like physical ones, require attention.
As we get emotional wounds through unhealthy relationships, resolution can come through healthy relationships.
We spend a significant part of our lives at work with our colleagues; the workplace can be a healing place if the founders and leadership know how to create such a company culture that fosters healthy, supportive relationships.
How does your company culture address this dimension? Do you know how to implement emotionally healing approaches in your 1:1s and team meetings?
6. Healthy Relationships
The quality of our relationships profoundly affects our life quality. This entails hiring qualified individuals aligned with the company's purpose, vision, and values and crafting a nurturing company culture.
A healthy culture does not equal a positive-vibes-only culture.
For example, bringing up difficult conversations and constructive confrontation is part of a healthy relationship.
Do you hire not only functionally qualified people but also look for alignment with your purpose, vision and core values?
Do you lead by example in building honest and uplifting relationships?
The closest other words are joy and serenity. Feeling well.
When the above dimensions align, this state is attainable. Additionally, provide that:
The role distribution and training allow people to feel competent (I know how to do it), to perform (input, process) and to achieve (output) well;
The leadership style allows team members to feel their power to impact things;
People receive positive affirmation from peers and clients;
There's someone everyone wants to identify with (e.g., for employees - a direct manager or mentor; for CEOs - a mentor).
If you're leading a company or department, rate each dimension on a scale from 1-10. Sum the scores and then divide by 7.
Share the outcome score with us - and let's delve deeper with a complimentary mentoring session, exploring ways to enhance it.
Farhad Niyoz is the CEO of Cocoon.