An Article From “Helping You Build A Better Business” Series
Article #2
Step 1: Build An `On-Purpose …On-Target’ Business!
Imagine you owned or managed the perfect business. What would it be like?
In my perfect business, I would come in to the office two or three days a week; check-in with my management team; review their progress and targets; give them some encouragement and direction; call a few loyal customers and take them to lunch; and then spend my free days doing the fun stuff I like to do! Work a little and make a lot!
I have learned that successful business owners and managers have three things in common:
- They know what they WANT.
- They have a written PLAN to get what they want
- They have a “Kan Do” ATTITUDE for Success
1 What Do You WANT?
Take a few moments. Close your eyes and visualise or imagine what your perfect business and lifestyle would look like. What do you see? What do you hear? How does that make you feel knowing you have achieved this?
What I have found doing this exercise with business owners over the years, is that people in business are ultimately looking for time, energy, money and freedom. And that = Wealth. Wealth allows you to enjoy your business and your personal life. Wealth also allows you to use your passive income to help others - your family, your employees, your special causes or your community.
I’ll tell you what I want. I want a business that is
- run 100% by my management team
- a great place to work that attracts the best employees
- built on long time repeat loyal customers
- making double the industry average profit
- growing my equity and building wealth
- enables me to enjoy life and have fun!
So what don’t you WANT?
You don’t want a business where
- Your Profit doesn’t justify your input of energy and effort
- Your Sales leads and conversion rates are low, low, low…
- Your Cash flow is strangling the life out of you
- Your Staff are not reliable and you constantly have to fix their problems
- Your Time… you work long hard days, sometimes 7 days a week
- Your lack of Systems means you are constantly fighting fires
- Your Customers are not referring business on to you
- Your Motivation is at an all time low
- Your Exit Strategy… hmmm, well that sounds like a fairy tale?
So again, what do you WANT?
Time, energy, money and freedom = Wealth
As a business owner, to achieve wealth, you have to build a business that works.
Our ultimate aim at Kando for all our clients-
To help you develop your business into one that works for you, making you more money, even when you are not there.
This is what I call an ‘On-Purpose.. . On-Target’ business. Your business and your money works for you. You are an owner, not a hands-on - make every decision, over-worked and under-paid worker with a “job” (which stands for just over broke).
Successful business owners know what they want & decide what’s important. Take a few moments to write what you want. You can use your visualisation notes from before as a guide as well as the categories below for ideas:
- Business
- Personal
- Operational
- People & leadership
- Customers
- Marketing & Sales
- Time
- Systems
- Equity & Wealth
- Freedom and Fun
Now go back and ask yourself, for each want written
“Why is this important to me?”
2 What Is Your PLAN?
Most business owners never become `wealthy’ because they don’t sit down and clearly write down a PLAN of what they want and how they will achieve this and in what timeframe.
Most think with determination and hard work, they hope to build a `perfect’ business. They don’t have a written plan, a management team, enough capital, or leadership skills to make it.
When I started my first business, it went well because I was small and did everything myself. It is simple when you have no overheads, no employees, and only a few clients to work on.
As your business grows, you work more hours. Cash-flow becomes tighter and you have no extra time.
Your finances get in a state so you hire a bookkeeper and hope they know what they are doing. The challenges continue to mount: cheaper competition, getting paid, unhappy customers, extra workload and expenses, and all the time trying to make a profit. There are too many details you get bogged down in and only have enough time to fire-fight.
You have to make all the decisions and keep trying to do it all yourself. You are now officially over-worked and under-paid.
If your business goal was to be busy - you’ve made it!
Everyone likes you when you’re busy except your family and friends, and yourself!
Next you try hiring staff. You’re now in management. This isn’t fun as you become the complaints department. And worst yet, you can’t let go. You can’t find any good people who are accountable, responsible, or will work as hard and as smart as you. People now become a big problem, not the solution. Your business isn’t working. You’re totally stressed out and frustrated, your life is out of balance, your business is out of control, and your company controls your every waking minute. Your business is now `Off-Purpose and Off-Target!’
3 What Next?
What should you do next? You have three choices:
- Go back to doing it all yourself
- Sit & wait for “it” to change
- Work differently!
The “Kan Do” ATTITUDE for Success
To build an ‘On-Purpose.. . On-Target!” business, you can’t shrink your company and you can’t sit and wait for something to happen. Your only choice is to change the way you work. To get what you want, you’ve got to make the big change - to change yourself! Change the way you think, do business, manage, prioritize, work, lead, and change how you work and live your life.
You have to change and implement new ways to run your business. You have to dedicate time (we suggest at least four hours a week) to working “on” your business. Commit to get organized, systemized and in-control. Work on setting 90 day goals, create budgets, and fix things which always go wrong and take up time, by installing operational systems. Review your financials, customer logs, receivables, assets and liabilities, and study your competition. Work with your key managers and delegate tasks. Set up test and measure targets for every department and focus on helping your key managers become the best they Kan be. And if necessary, get outside help.
Your current results in profits, people, stress, time, and freedom are the #1 indicator of your priorities and your attention to customer service, quality workmanship, financial reporting, operational systems, marketing and sales systems, motivating people, and visionary leadership.
When you’re not getting what you want from your business, there’s something wrong! It’s not your people, subcontractors, suppliers, competition, or customers. It’s you!
Your bottom-line results are the number one indicator of your abilities as the leader of your company.
To get what you want and be ‘On-Purpose…On-Target’, you’ll have to change the way you think about your business. The natural tendency is to continue doing things the same way, work hard, stay busy, and try to force it to happen.
But remember the purpose for your business is to give you what you want: above average profits, grow your equity, create opportunities, build wealth, and give you freedom as your business works without you!
Take the first step
What Kan you do differently now to get what you want?
You Kan get your business to work. Envision what you want and how you will get your business to work without you.
Decide what you’ll have to do with your money, time, systems, marketing, sales, customers and team. Remember an `On-Purpose… On-Target’ business meets your business and personal goals.
Step 1. Figure out exactly what you want. Write it down. Develop a Kan Do Attitude and go for it!
Step 2. We will explore step 2 – “Make a Profit” in the next article of this series.
How to make Profit a top priority in your company. How to develop a profitable business model to give you a financial return for the risk you take. Calculate and track progress towards your required sales volume, break-even point, overhead, fixed cost of doing business and profit mark-up to reach your goals. Install action plans to make your profit goals become a reality.
But now, as Stephen Covey says, “Begin With The End In Mind”
Take the first step and make a detailed written list of what a perfect business would be for you.
Ignore “reality” – and focus on the dream!
All the Best with building your prosperous business.
