As the first quarter of the year
comes to a close, it is time for you to check your numbers. What were your
goals and how are you doing? Are you right on track, or are you a little
behind? In order to reach your goals you first must plan and then track your
progress against your plan. Think about it like your car. They plan for a certain
lifespan for an automobile and this is similar to your business and personal
goals. If you are a little overweight and your goal is to lose five pounds this
year eventually this goal’s lifespan will pass. A new goal such as maintaining
a certain weight may replace it.
In this sense your business is like
an automobile. You have a fuel gauge, a speedometer, an odometer, a heat sensor,
and other gauges. In order for your automobile to reach its lifespan these
gauges must be checked because it reads what is happening under the hood. The fuel
tank is your cash. The speed limit is the rules and regulations that you must
abide by in order to keep your business. The odometer is your equipment and
skills. The heat sensor is the stress level that one is under when they open a
business. There are good days and there are bad days, sometimes we overheat and
we need to cool down. Each of these gauges can be measured and have a direct
correlation with success in goal achievement.
When we look at cars and your
business goals, we need to look at this through three primary vehicles. First
there is the entry level of starter car. We have all had these, they teach us
what to do, what not to do, where and how to drive, and for some of us we even
learn about the law. Second we will look at the midsize economy cars. These are
the cars we need when our responsibility increases such as having a baby, or a
long commute. The last car that we will explore is the sports car. This car is
the one that we all dream of having and often times when we get it we do not
know what to do with it. These cars can be viewed through the small business
prism. Let me explain.
Entry level
An entry level car is comparable to
an entrepreneur opening their first business. These businesses are lean, like
having the fuel gauge read a 1/4 tank. They are the place that the entrepreneur
spends all their time just like we all did when we got our first car. They are
also were we learn about the intricacies of car ownership. We learn about maintenance, and for some of
us we learn how to deal with a flat tire. As small businesses when you take
that first step to open and sell your product or service to the outside world
there is so much to learn. Your fuel gauge is typically under a half of a tank,
usually a quarter or below. The speed in this car can go from fast to slow,
similar to when a young person is learning to drive. Small business owners must
get a feel for the speed at which they are comfortable with. As the odometer are
skills and equipment, sometimes accelerated learning is required (speeding) and
other times costly equipment can really set a business back (speeding
ticket). The heat sensor is unique in
this car, because small businesses are learning their heat tolerance. There are several other cars that one
purchases after they drive an entry level one, let’s look at the midsize.
The Midsize
The midsize car is one that people
purchase when they have a level of responsibility. This is after the initial
phase of starting up a business. Your goals are different. When you had an
entry level car, your goal was to drive. With this car you actually have a
certain level of priority to your life. You want to remain safe, and the car
must be reliable. In the business realm, your business has had some clients and
they expect a level of customer services, they also expect
professionalism. In this car, your fuel
tank is never below a quarter of a tank because you have an established cash
flow system. The speed is steady; you are now looking at regulations before you
act, because of the new responsibilities. Driving a midsize with your family is
similar to this action. Your odometer is the busiest gauge here, because you
are reinvesting your earnings in new skills, new equipment and employees. Your heat gauge has been established in your
previous years and you now drive an automobile that does not overheat.
The Sports Car
When we look at a sports car, they
have gauges that are not needed on the previous two cars. This is because they
have been so fine tuned that they are about one thing: speed. The odometer is
not as important because the skills have been developed. The heat sensor within
the small business owner has been replaced by employees who take all the heat;
we call them sales and HR people. At this point fuel is not a problem either
because the company has now hired out people to ensure that cash is
flowing. Speed in this car is growth.
The other gauges are the legal, logistical, and other aspects that hinder
growth. When a small business starts out
these task are all on one person, now they are delegated and the business is
ready to take off.
Where are you?
Each car represents a different
aspect of small businesses. If you try to speed like a sports car in an entry
level, you will get burned. You will either run out of fuel, get pulled over,
or overheat. Sometimes a midsize may go the same speed as a sports car, however
if they keep it up they will have troubles too. A sports car may be cautions in
some activities; similar to a midsize, but this will reduce the efficiency of
the organization. Each car has a place
on the road and in the lifecycle of businesses. For the small business owners,
you must make sure that your goals are aligned with your current car. If you
are a midsize, what skills are you learning to meet your goals? If you are an
entry level remember that you cannot drive like a sports car for long periods
of time. Track your experiences in this car so that when you move up the
transition is smooth. For the firms that are driving the sports cars, keep an
eye on the other gauges that allow for the car to travel at such great speeds.
What car is your business driving?
What steps are you taking to improve your car, and how will you move up? In order to achieve your goals for 1013 you
need to check your gauges and see if you are on track. Have you checked your
gauges lately?
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