Align your Business to Serve your Life, Not Consume It
Business outcomes come in three parameters:
Size, Speed, and Sustain (profits). You choose your business direction by considering the best combination that suits your desires.
Four life plan elements combine to help you navigate your decision-making in the three parameters. These are:
Your vision and current reality can be defined by all four. These are: How you spend your time now at work and outside work, your income from the work you do and how much you save, the people you work with inside and outside your organization, as well people in your personal life, and your fundamental values that root your efforts.
Describe each of these today: time, money, relationships, and values.
Describe the way you want these look three years from now.
Now consider your business outcome. How much size, speed, and sustain (profit) will be required?
Parameter 1: Size
How big do you want to get? How many employees? How much volume? How much market share? When you consider size, consider where you’ll spend your best time at work and what your team support needs will be to free you up. Bigger isn’t always better, instead, consider a size that fosters the best net profit, not total sales. Having more responsibility and grind and less in return is not a good formula.
Parameter 2: Speed
How fast do you want to grow? 30% year over year? 10X over? Considering time, values, relationships, and money, what growth speed level suits these? Speed, if not controlled well, can create so much demand for you and your team that it leads to burnout. Remember that building your business is a marathon, not a sudden sprint. Fast growth can lead to terrible consequences that cause severe contractions. Do you see yourself building it over 3-5 years, then selling, or a long term way forward of 10-15 years?
Parameter 3: Sustain
Considering time outside of work, lifestyle, vacation time, and money to sock away to retire, and who you want to spend time with, and what values matter to you to get expressed, what required profits do you want your business to produce?
What operating cash flow (OCF) would you like to have monthly of these profits, to pay your desired income level?
What desired profit and cash flow levels are desired for you to pay down your business debt?
And what profit and OCF would be wanted to invest in more support staff to grow and expand in the ideal size and speed levels you want?