Rags or Riches – What’s Your Condition?
03 Aug 2018

Rags or Riches – What’s Your Condition?

03 Aug 2018

When people are talking about a “condition”, they normally think of body fitness, health or the state of your car. But, did you know that there is an actual technology behind that word?

“Condition” is defined as the state of existence of something, whether good or bad.  We determine the condition of something based on a scale of quality. For example, poor – fair – good – excellent – mint. Naturally we strive for the upper part of that scale.  But in business there is a completely different scale to measure the condition of your company.  This scale is based on your company performance and viability. Is it in “danger”? Does it even “exist” to your public? Is it affluent or just going along normally without leaps and bounds? These are all states of existence your business can be in.

For example, you have just started your business.  Your business would be in a state of “non-existence”.  Your public don’t know that you exist.  Or you have just closed a huge deal and your sales shoot up to the highest ever sales range.  That would be an affluent condition. You would have an abundance of income coming in to comfortably plan your future expansion. Another example would be if you have been doing poorly for quite some time and you cannot keep your employees anymore.  You are forced to downsize and that would be a condition of “danger”.  You may have been in a situation where you thought about closing the doors and giving up.  You haven’t made any sales; the bills are stacking up and half of your employees have already quit.  According to the SBA (Small Business Administration) 30% of new businesses fail during the first two years, 50% during the first five years and 66% during the first 10.*  That’s a scary statistic! It shows that entrepreneurs are risk takers.  They must be, or no one would ever start a business.

A company is made up of individuals and just as your company is in a condition, so are your individual employees on their jobs. For instance, if an employee  is constantly late, you would do something about it because it’s not “normal”.  You would recognize that this employee is endangering the company.  His or her condition would be “danger”. Or, what if one of your salesmen makes sale after sale and then suddenly stopped? Now that would endanger the company too. Or, what about the new employee  who attempts to change everything in his department while his colleagues don’t even know he “exists”. These all show a condition at work – but how do you deal with that? How can you improve the condition of your company and your staff?

The beauty is that each of these conditions, Non-Existence, Danger, Emergency, Normal and Affluence, have their own formula to improve that condition.

In his article Basic Management Tools, Mr. Hubbard states, “A condition is an operating state. Organizationally, it’s an operating state and oddly enough there are several formulas connected with these operating states”.  He continues to state, “There is a law that holds true in this universe whereby if one does not correctly designate the condition he is in and apply its formula to his activities or if he assigns and applies the wrong condition, then the following happens: He will inevitably drop one condition below the condition he is actually in.  One has to do the steps of a condition formula in order to improve one’s condition.”

But first, how do you know what condition your company is in?

Some entrepreneurs seem to have a sixth sense in locating trouble spots in their company.  However, counting on a sixth sense would rule out about 90% of all business owners.  There is an easier and safer way.

An earlier post talks about the importance of keeping statistics in your company.  These actually measure the condition of your company at any given moment.  By raising the statistic one can raise the condition of the area that statistic measures. How? By using the Condition Formulas developed by Mr. Hubbard to increase production levels and overall prosperity. Say the statistics of your company are on a steady rise.  Each month is better than the previous month. You haven’t reached the high peaks, but your graph shows a comfortable steady rise.  Of course, the first thing you think about is “we’re doing good! Let’s expand and hire.”  But is this the best time to hire new employees? Or buy that new fleet of cars for the sales team?

The answer lies in the Condition Formulas.  Doing the wrong thing at the wrong time can crash your statistics and plunge your company towards bankruptcy.  Doing the right thing can make you a millionaire!

Do you want to know more about the Condition Formulas and how to apply them to your business?  Sign up for our online courses and learn to boost your business to the top.

 

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Source:
https://www.investopedia.com/slide-show/top-6-reasons-new-businesses-fail

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