Posts Tagged: Business Strategy Importance
If you want an action taking strategy, you have to take action. That may seem like a simple statement, but too many people don’t take action on what they believe.
You are different, that is why you are here. I want to walk you through a simple exercise to help you build an action strategy that will launch your business towards success.
I want you to sit down and write out what you want your business to be like in five years. If you did not watch the video or read the blog on goals, you may want to go there first.
Truly envision what you want your business to be like in five years. What does your office look like? What are your hobbies? How do you give back from your success? How is your family life? Get it solid in your head and then write it down.
Now, you need to be specific. Write down how much money you are making, how many customers you have and how your life is. The more specific the better.
Here is where the magic happens: break down that 5 year goal into 5 steps.
Let’s say you want to make to be making one million dollars at the end of 5 years. Well, you need to make $750K in year four, $500K in year three, $250K in year three, and $100K in year one. (That is supposing you are starting from zero.)
As a smart business owner, you will want to think about things like attrition, taxes and things like that. Attrition means you may lose some customers. Look at industry standards and account for those figures. When you plan on monetary goals, plan with your taxes in mind. Your goals will be more specific and you will be on track to know exactly what you need to do.
Then, in year one, break down what you need to do in months. Logic would say that you need to have about $10K a month to make $100K in the first year when you factor in taxes. Yes and no. Yes, that would be correct, but if you are starting from zero, you need to account for sustainable growth.
When we broke down one million dollars, we backed it up in increments. In your first three months, you may make $10K. Then, you start making $10K in months three through nine. Finally, by the end of the year, you are making $20K a month, which gets you on track for your goal for the next year.
Granted, everything will not necessarily work out perfect. Remember, goals are guidelines. I mean, if you start making $50K a month, don’t stop. Push forward, look ahead and adjust your goals accordingly. You may begin making your one million a year in a lot quicker time than you thought.
If you have an actual strategic plan of action, your goals will become reality.
So, do it! Write down your five year goal, and break it down all the way to this week. Then, put the action steps you need to take this week and make them a priority. You will see your success coming quicker and you will be able to plan for the growth as it happens.