Welcome to our latest blog in our mini series dedicated to ensuring “early stage” entrepreneurs build a profitable and sustainable business. In this third blog we focus on more specifically on the importance of developing real clarity on where the business is heading and a real sense of purpose alongside the areas that every successful entrepreneur needs to master in order to be successful.
Avoiding The Pitfalls
Whether you’re at the start of your entrepreneurial journey or already well on your way, the challenges associated with building a profitable and sustainable business, irrespective of the industry sector, are often considerable.
At the heart of every entrepreneur’s start-up dream is the old quote that simply states….
Failure is not an option and yet why is it that so many fail to realise their full potential?
All too often entrepreneurs start their journey without real clarity as to their DESTINATION. Similarly, many entrepreneurs rapidly lose sight of and/or forget not only where they were heading but more importantly WHY they were heading there in the first place.
As the phrase goes… “if you don’t know where you are heading, how will you know when you’ve got there?”
Ironically – very few entrepreneurs would dream of building a house without a detailed set of plans drawn up without the help of an expert and yet why is it so few entrepreneurs (a) have any sort of written plan and (b) any sort of plan compiled with the help of someone more experienced than themselves?
Successful entrepreneurs all recognise the importance of investing in detailed planning using recognised business planning tools such as SWOT & PEST to create real clarity around the company’s vision, mission and performance goals in the form of;
- 5 year long-term strategic plans featuring the company’s BHAG, core values, brand promise & KPI’s
- Annual plans featuring the company’s key initiatives, actions, & KPI’s
- 90 day plans featuring the company’s critical numbers, KPIs, company priorities
One of the most common pitfalls that entrepreneurs make is that they often don’t have enough clarity around the organisation’s purpose and/or fail to share it with prospects and customers alike.
Simon Sinek’s Golden Circles (see below) perfectly demonstrates his point that people don’t buy what you do, they buy why you do it. Equally as entrepreneurs your Number 1 goal is not to do business with everybody who needs what you have, the goal is to do business with people who believe what you believe.
Why Not try Our
Understand what stage your business is currently at, and get a bespoke report that will help you take it to the next level!
As businesses grow, they invariably face some very specific challenges. Understanding how best to address them, in what order, whilst also identifying the opportunities associated with these challenges is a critical part of unlocking your business’ true potential.
Alongside a great commitment to planning successful entrepreneurs recognise the critical need for a strong financial awareness and robust controls within their business.
Sadly far too many business owners struggle because they have no ability to make decisions, due to a genuine lack of financial information and their failure to understand the importance of both historic and future numbers in their business.
Without simple tools such as a budget, a cashflow forecast and a basic financial dashboard highlighting key indicators such as the business’ break-even point, its gross and net margins, alongside details of the business’ sales pipeline the challenges become greater still and the chances of success harder still to realise.
No entrepreneur likes making mistakes let alone costly ones. In addition to the obvious financial cost implications the time entrepreneurs are forced to commit to resolving common pitfalls is invariably considerable.
To avoid these common mistakes when establishing and growing their businesses successful entrepreneurs invest their time in learning what it takes to establish and maintain a successful, sustainable and profitable commercial venture from the get go saving themselves both time, money and vast periods of stress, anxiety and self-doubt.
By investing in our Online Growth Accelerator Membership Programme you can learn how to avoid the common pitfalls and all of the skills you need to build a profitable commercial enterprise for yourself. You’ll have access to all of the tools that our successful One to One and numerous Group Coaching Programmes provide at a fraction of the cost and enjoy the flexibility of learning at a time and in an environment that suits you best.
Too Many Hats & Not Enough Time
In the early stages of running and building a successful business one of the most common challenges for entrepreneurs is the fact that they’re having to wear multiple hats all of the time.
Having successfully navigated the launch phase they’re often still responsible for all of the key functions across the business, namely Sales, Marketing, Finance and Operations.
The primary challenge then becomes one of time and prioritising where to focus first.
As Michael Gerber pointed out in his celebrated bestseller The E-Myth Revisited, SME business owners typically begin their entrepreneurial journey from one of 3 backgrounds, namely;
- Technician i.e. they’re an operational expert in a particular line of work
- Manager i.e. they’ve been a manager in a specific industry
- Entrepreneur i.e. they’ve massed funds to invest in new ventures
In all 3 cases, however, the business owner is rarely an expert in more than one or two functions and hence managing tasks in the others take considerable amounts of time until such time as they learn how to be proficient in all of the other areas.
Successful entrepreneurs recognise that time is without a doubt their most valuable asset. They understand that Entrepreneurship is all about the ability to convert knowledge and effort into money through the investment of their time into value-add activities.
They equally recognise that there is no such thing as Time Management. They recognise that in reality, it’s all about self mastery in so far as it’s all about where entrepreneurs choose to invest their time.
The most successful entrepreneurs manage to spend most of their time in what is commonly referred to as The Zone focusing on Important tasks that add real value to the organisation as opposed to tasks that have simply become urgent. They successfully avoid getting distracted and maximise the returns from the hours that they invest in their work.
Conversely, many entrepreneurs who lack the clarity and focus from the outset find themselves wearing every hat in the business, working excessive hours and therefore finding little or no time to work on the business let alone spend time with family and friends.
Systemise the 80% & Humanize the 20%
As well as investing significant time and effort into developing robust business, financial and targeted marketing plans, successful entrepreneurs also invest heavily in systemising their businesses from the outset. They learn the benefits of Systemising the 80% & humanizing the remaining 20%.
In one of his better books (“Instant Systems”), Action Coach’s Brad Sugars summarizes the 9 Steps to systematizing a successful business, more specifically through;
- Vision Statement
- Mission Statement
- Culture Statemen
- SMART Goals
- Organisation Chart
- Positional Contracts
- How to Systems
- Management Systems
Want more great content like this? Check out our latest eBook today!
Download a free copy of our eBook “Why So Many Businesses & Ambitious Entrepreneurs Fail to Achieve Their True Potential” today!
It’s packed full of practical and easy to implement strategies that will help you “Avoid the Pitfalls” and drive your business to the next level!
The net result of implementing these individual systems is much higher consistency of activities through process and procedural excellence. These, in turn, bring about improvements in operational efficiency resulting in significant increases in both revenue and margin growth.
For entrepreneurs that are still wearing too many hats, learning how to avoid these common problems is a critical step in building a successful business with an ability to grow year after year.
By investing in our Online Growth Accelerator Membership Programme entrepreneurs learn how to build a winning set of business, financial and targeted marketing plans. They learn how to prioritise the important value-add activities whilst delegating and/or outsourcing those others that require lower skills to deliver and add less value.
In the same way as the members of our successful One to One and Group Coaching Programmes participants in our online membership programme learn how to systemise their businesses through tried and tested tools and techniques whilst being guided again by our team of top coaches who remain on hand should you ever need extra help & support.
Book A Call
Why not get in touch with the team today? We’d love to hear from you!
We’re truly passionate about supporting business owners like you overcome your challenges and unlock the true potential of your business. If you’re looking to drive your business forward, get in touch today!
We hope that you’ve found today’s blog useful and informative. DON’T MISS the fourth and final part of this mini series about creating a profitable and sustainable business. In our next blog we focus on the importance of creating a consistent and profitable customer base as the bedrock for future growth.