When starting out in business the first question you should have asked is WHY or what is my business purpose in operating my business?
Why did you start your small business?
The WHY in 2021 is more important than ever in these tough crazy times. The why is the glue for your goals, your future, and your wealth planning
Today we are in the first week of 2021. Many of us are hoping to put 2020 behind us. You maybe reading this is because you are relaxing and preparing for the year ahead. It is a good time to reflect and ask where are you going? What is your business purpose?
Thinking is strategic in business
Many years ago, I read the book “Think and Grow Rich”. It has probably taken me many years for the title to really sink in. Its not Do and grow Rich the emphasis is on “Think”
Think means sit down and plan brainstorm and innovate. Doing is after thinking. Most of us just do. Thinking is only for smart people.
So WHY IS WHY so important?
So back to WHY. Why are you so excited about your business in 2021? Or why you may not be!
Take the time to think WHY. IS my why or your business purpose for running a business still relevant today as it when you first started!
Think about your WHY and set some simple action goals. Many gurus promote goals as a pathway to success. The water can be muddied between business and personal goals. The WHY is a powerful concept that many gurus promote.
To me, the personal goals are separate from your business, but it will be the business goals will guide you as to the purpose of your business.
As accountants, we are here to help you achieve your business goals. Goals that are measurable set pathways. Business goals can be powerful.
Your business 2021 Revenue budget is a great start. It is a powerful tool to keep everyone focused. The satisfaction of achieving above your target is rewarding and can be used as tool to reward the team and owner.
When setting goals I like financial goals that are just out of reach but still obtainable.
It is not uncommon for businesspeople to reach out and say that they set goals. Take Sam a typical small business owner. He has boldly stated that he wants an annual sales turnover of a million dollars this year. Great goal but what does it mean and how does he get there. Break it down and how and what will it deliver.
Million dollar sales with no plan may not be doable!
Does a million dollars in Sales equate to a bottom-line profit of what to you. Sam later confessed he had no plan he just liked the thought of a million-dollar turnover. When you explain that it equates to $83,333 in sales per month or $19,520 a week or $,3904 per weekday it gets a bit harder.
We will need to set a plan that aims to set the journey towards that daily, weekly, and annual result, if that’s Sam’s goal. Trim the sails and head towards the blue oceans and achievement.
This along with other profit leavers is a goal that Sam may just get excited about.
Alling your why to your 2021 stategy!
Back to our proposition of why you are in business. Rethink your strategy and decide what your new why is for 2021. It comes down to business Why again. Here are some reasons that might help add clarity to your Why!
1.I am business because I want to make a profit for my family and lifestyle?
2. I am in business as I am passionate about what I do?
3. I am in business because I wish to sell and fund my retirement?
4. I am in business because I need a job?
There are so many whys, you need to determine your WHY? Take a read of our related article about small business excuses
Once you know your why you can set your financial gaols and actions to align your business why to your business goals. It sounds easy and it can be, but it takes commitment to work through a process. We all have had goes at getting it right and only those who persist and have a disciplined approach succeed.
Geoff can be contacted on 03 9597 9966 or firstname.lastname@example.org