Business Development - Don"t Build Your Business Backwards!
Most entrepreneurs and small business owners build their businesses backwards.
No matter how many times I open a presentation with this line I get the same result from the audience, tilted heads, puzzled looks and a couple of knowing and sad nods of agreement.
The most common way for an entrepreneur or small business owner to start a business is to get a great idea, craft a business plan that focuses on revenue and expenses, locate the capital needed and they launch.
The problem with this approach it that they are strictly building themselves a different job, not a business designed to serve them.
The traditional model does produce some great businesses and typically a well thought out one will pay back the bank and the venture capitalist as expected.
It also creates cranky, tired and often disillusioned owners.
My three favorite questions for my fellow business owners are:
It's not too late to fix it...
if you have the guts to do it.
You should you had the guts to start the business, changing the model is actually easier regardless of how long it's been operating.
Building a business plan the correct way or forward rather than backwards begins by clearly articulating what the end should look like.
Knowing these numbers helps you determine your business model, plan your marketing, target the right customers that can afford your products or services and helps you plan for staffing as well.
Remember there's a very specific science to building a business the right way if you truly want to be able to Do business on your own terms! ®
No matter how many times I open a presentation with this line I get the same result from the audience, tilted heads, puzzled looks and a couple of knowing and sad nods of agreement.
The most common way for an entrepreneur or small business owner to start a business is to get a great idea, craft a business plan that focuses on revenue and expenses, locate the capital needed and they launch.
The problem with this approach it that they are strictly building themselves a different job, not a business designed to serve them.
The traditional model does produce some great businesses and typically a well thought out one will pay back the bank and the venture capitalist as expected.
It also creates cranky, tired and often disillusioned owners.
My three favorite questions for my fellow business owners are:
- When was the last time you took a vacation? How many weeks per year?
- How many family events do you miss every year?
- What would happen to the business if you or a family member got seriously sick or injured?
It's not too late to fix it...
if you have the guts to do it.
You should you had the guts to start the business, changing the model is actually easier regardless of how long it's been operating.
Building a business plan the correct way or forward rather than backwards begins by clearly articulating what the end should look like.
- How much do you want to make each year, quantified, not just 'as much as possible".
- How many weeks do you want to work each year?
- How many days per week?
- How many hours per day?
Knowing these numbers helps you determine your business model, plan your marketing, target the right customers that can afford your products or services and helps you plan for staffing as well.
Remember there's a very specific science to building a business the right way if you truly want to be able to Do business on your own terms! ®
