It is always interesting hearing the thoughts of other business owners - especially when they are all relatively new business owners. This morning I was in a room with a bunch of fellow "young" Business Owners discussing the challenges faced when starting a new business as well as some opportunities etc. The discussion turned to talking about getting advice and information and not being able to afford services such as business planning, cashflow planning, marketing, mentoring, how to design systems and processes etc etc. My question - can you afford not to?
In our 1st article about working "on" your business I posed the question what did this term actually mean? Is it
- Networking to attract new customers?
- Organising your cashflow?
- Researching & designing a new product?
- Reviewing your gross margins?
- Developing Business Systems and Processes?
- Developing your existing staff?
- Preparing a Business plan?
- Preparing a Marketing plan?
In subsequent articles I suggested that working "on" your business was a combination of all of the above + more.
Now when we all go into business we have a bucket full of ideas, we are soooooo excited about starting our new venture and think nothing can really stop us. But then reality hits home. Is this business thing all it was talked up to be?
But I often wonder whether the same question would be asked if more planning had been done pre and post starting the business? Is the Fear of the Unknown stopping us from reaching our full potential?
I have likened running a business with running a marathon. You would not attempt to run a marathon without training. You would (I hope) not attempt to run a marathon without the proper equipment such as shoes, water, and a training plan which involves a commitment of your time. Well why is business any different?
Why do we start a business without the shoes and training plan and the commitment? Why do we continue to run a business without the shoes and training plan and commitment? How do we think we can run a business without the business planning, cashflow planning, marketing, mentoring and systems? What difference do you think it would make to your business if you had these things in place? What difference do you think it would make to your business if you reviewed where you were up to with your plan on a regular basis. What difference do you think it would make if you were held accountable for your results?
Let's take a look at an example:
You are running your business, working long hours, getting paid your minimum wage and generally just getting by. You only have 1 outstanding BAS to pay and you are keeping up with your equipment repayments so you must be doing ok. Right? Or Wrong?
Without the planning for your business what happens when it comes time for your balloon payment on your equipment, or time to upgrade? What happens when that 1 big customer that owe's you money goes under and doesn't pay you?
Are you PLANNING for any scenarios in your business?
If this was your business and you were told that given your current cashflow and profitability levels if everything was kept the same as it is now you would be broke by December 2011, would you want to know now or in December when it is too late? Would you want someone to guide you through what you need to do in order to turn your business around? Would you want someone to help keep you accountable and on track with those plans?
If you have a vision for your business to reach it's full potential can you afford not to?
