Article provided by The Transformation Legacy
Starting a business is much like creating something that is so valuable that you foresee it lasting a lifetime. No one starts a business only for it to close down after a few years. Every entrepreneur wanting to start a business does so with a clear purpose in mind: to grow it and create value so that they can sell it after a certain period or to build a successful business that the owner can then retire from, etc. Either way, there is a specific end that the entrepreneur has in mind before the business even comes to life. This brings me to the first key step to building a solid foundation for a sustainable business:
Start with the end in mind
It is important to know what the ultimate goal is for the business. As an entrepreneur, how would you like to exit your business? It is much like building a house when you start building, the first thing you do is to visualise what you want the house to look like; you, therefore, get an architect to design the home in line with the vision you have. So before you start, what would you like your business to look like when it’s operating at its optimal level and you are content and ready to exit?
Develop a comprehensive business plan
There is an unfortunate misconception that a business plan is just a document that should be drafted when funding is required. It is much more than that; it is a comprehensive plan that details how you will go about achieving the ultimate goal of your business- ‘’your end’’. It’s important to develop a plan for the business. A good business plan should incorporate the following:
- Company vision, mission and values,
- 1 to 10 years’ goals for the business with specific timelines and a detailed outline of the resources required,
- Marketing plan based on market research and industry analysis,
- Financial model and projections,
- Human resources plan,
- Operational plan: how will the business run on a day-to-day basis,
- Company processes and systems,
- Response to periods of uncertainty,
- Action plan: how will the plans be implemented, and
- A business owner’s succession plan
This is a live document so it can be amended as and when new changes are implemented in the business.
Set up the right structure to enable you to achieve your goals
The structure always starts with the structure of the entrepreneur/s. Therefore in order for you to develop the right structure for the business, you need to start with your own structure as it influences the business heavily, especially in the infancy stages of the business. It is crucial for an entrepreneur to understand what they would need to do on a daily basis, weekly, and monthly basis for the business to achieve its goals. Having the right structure sets the tone for the business and allows you to understand exactly what you need and who you need on board to achieve your goals.
‘’Give me six hours to chop down a tree, and I will spend the first four hours sharpening the axe’’ – Benjamin Franklin. I enjoy this quote because if you are starting a business, you need to spend time building a solid foundation which will enable your business to survive during difficulties, to thrive during seasons of high opportunities, and to be stable when required.
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