Friday, July 16, 2010

Step 1: Be Clear: What Purpose Your Business Serves

Understand clearly what it is that you want from the business. Is it to give you a job? Is it to give your children a job? Is it to keep you occupied and busy? Is it to develop into an asset that you can sell at a time in the future?

There is no right or wrong answer here – but there are different approaches that could be right or wrong, depending on what answer you have to this question. If you are buying yourself or a child a job, then you may be happy being the one who does everything in the business, and be tied to the business in order for the business to run. If you are starting the business to run as an effective business, that can be run whether you are present or not, then you’ll be needing to ensure that systems are in place, standards and efficiencies to ensure consistent production and delivery no matter who is filling each role.

This option is always available should you decide to switch from being ‘the one who just works in the business,’ to being the CEO of your sellable business.
But remember, knowing your purpose and being able to clearly send that message and live your business congruently, is one side of the equation.

Making sales is the engine for the economic wellbeing of any business. No planning is going to help you if you have not developed a way for the business to bring in good sales, with healthy margins leading to good profit and ideally, ongoing sales over time with the same customers, referrals and new customers too.

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