Business Hierarchy of Needs - What to Build When

Figuring out when to develop different parts of your business can be tough. Some tasks seem exciting and shiny, while others might not catch your interest. As a business owner, you’re leading your company’s growth. Without a clear plan, you might constantly think about future goals and wonder which to tackle first.

Learning from Maslow’s Hierarchy of Needs

In my personal life, I’ve found guidance in Maslow’s Hierarchy of Needs. In his 1943 paper “A Theory of Human Motivation,” Maslow explained human motivation by categorizing and prioritizing our needs. The hierarchy is often shown as a pyramid with five levels, starting with basic needs at the bottom and moving up to more complex needs at the top. This model shows us how to move from survival to thriving.

Many of us learned about this in business school to understand consumers and the market. But can we use it to understand our business’s needs and create a roadmap?

The Business Hierarchy of Needs

By using similar categories, we can create a Business Hierarchy of Needs. This helps identify the essential aspects a business needs to survive, grow, and reach its full potential. Here’s a visual representation:

Just like people need to meet their basic and safety needs before achieving higher levels of self-esteem and self-actualization, businesses need to secure stable revenue, efficient operations, financial stability, and compliance before focusing on growth, reputation, and innovation.

Creating a business equivalent of Maslow's hierarchy of needs involves identifying the fundamental aspects required for a business to survive, grow, and achieve its highest potential. Here's a proposed hierarchy:

Breakdown:

1. Basic Needs (Survival)

   • Revenue Generation: Just as humans need food and water, businesses need revenue to survive. This includes sales, cash flow, and profitability.

   • Operational Efficiency: Ensuring that the day-to-day operations run smoothly, including supply chain management, inventory control, and production processes.

2. Safety Needs (Stability)

   • Financial Security: Adequate funding, savings, and managing debts. This includes securing investments, having reserves, and maintaining a healthy balance sheet.

   • Regulatory Compliance: Adherence to laws, regulations, and industry standards to avoid legal issues and penalties.

3. Social Needs (Connection)

   • Employee Relations: Fostering a positive workplace culture, ensuring employee satisfaction, and promoting teamwork and collaboration.

   • Customer Relationships: Building and maintaining strong relationships with customers, ensuring high customer satisfaction and loyalty.

4. Esteem Needs (Growth and Recognition)

   • Brand Reputation: Establishing a strong, positive brand image and gaining recognition in the industry.

   • Market Position: Achieving a competitive position in the market, being seen as a leader or innovator in the field.

5. Self-Actualization (Fulfillment)

   • Innovation and Creativity: Encouraging and investing in new ideas, technologies, and processes to stay ahead of the competition.

   • Mission and Vision: Staying true to the business's core values and purpose, contributing positively to society, and achieving long-term strategic goals.

Tackling the Challenge of Prioritization

Most business owners are often short on staff and overwhelmed with daily tasks, making it hard to focus on strategic next steps. Passionate business owners want to do things right and ensure that each step benefits their business and aligns with their vision.

This is where consultants come in.

Good consultants support business owners by focusing on the big picture, especially when you're too busy to develop new strategies yourself.

A good consultant acts like a temporary business partner, fully understanding the project at hand.

They balance your business’s current reality with new ideas and possibilities. Each level of the hierarchy involves projects that require focused thinking to develop creative, out-of-the-box solutions to balance goals, resources, and enjoyment for those involved.

Milestones at Each Level

There is always an opportunity for customized-creative-problem-solving to drive your business toward success. As Simon Sinek said it, it’s not just what you do but how and why you do it that sets you apart. Focusing on your "how" and "why" is key to building a loyal community of employees and customers.

This Business Hierarchy of Needs can help you create a roadmap for your business’s growth, and inform you when to hire outside help to grow your business. What you will have to make time for is the task of creating a good brief for consultants your hire and ensuring they have all the information they need to quickly morph into an extension of your business.

Here's an article to help you with the onboarding process.