Building a business is like building a house. What if I told you to start raising the frame structure for your house without pouring the foundation first? You would probably say I’m crazy. Without a solid foundation, the building will not withstand the test of time. Unfortunately, this is how most small businesses get started.
So, what are the key components of a strong foundation?
- A strategic business plan that clearly articulates the core vision of the business, specific target market, competitors & competitive advantages. While the actual plan itself may evolve, the act of planning should remain constant.
- Fundamental financial knowledge and skill sets for running a business. It’s more than collecting income & paying bills.
If you are an entrepreneur today, ask yourself these questions:
- “How am I forecasting my revenue and budgeting my expenses?”
- “How am I managing my business cash flow today to make sure that my business will be able to weather the ups and downs of the economy?”
And if you find yourself wondering:
- “I don’t know where my next client or pay check is coming from…”
- “I’m doing a lot of marketing, but I’m not seeing the results I want…”
then chances are you are missing the key connection between your revenue goals and marketing activities. Being busy “doing” doesn’t necessarily give you the desired results. But methodical planning and consistent execution do.