Business Lessons from a Bride

My daughter Katie recently got married. Something dawned on me as the planning wound down and the big day finally arrived. (Actually, two things dawned on me. One was the almost machine-like efficiency with which this extravaganza reduced our bank account balance. But that’s not what I’m writing about now.)

Here’s what I noticed: Everything came off exactly as planned.

Before you say, “So what?”, consider … There were dozens of people involved and hundreds of details to manage. Tuxedoes. Dresses. Photographers. Videos. Down-payments. A cake. A reception hall. Invitations. More down-payments. Decorations. The church. The vows. Bridesmaids. Groomsmen. You get the idea - the list goes on and on.

It was a truly impressive display of planning your work and working your plan.

Here’s what I saw:

• 
  It started with my daughter’s personal vision for her perfect wedding. (A long-range vision.)
• Then, she started making lists and putting her thoughts down on paper. (Establishing goals and written plans.)
• This, in turn, led to Katie asking various people (including me, but especially my wife Joyce) to handle assorted aspects of the operation. (Delegating - Assigning specific tasks to specific people with specific timeframes and outcomes.)
• Katie followed up with the people involved and on the planned activities to ensure all was proceeding as expected. (Using Key Performance Indicators to measure progress and success.)
  

I saw a potential lesson for small business owners. What if a small business owner planned and managed his or her business this way?

Now, I know that this is not a perfect analogy. A wedding is a one-time event, and a business runs continuously. I understand that. But isn’t there something to be gleaned from such an example?

For the most part, entrepreneurs know what needs to be done. The shortcoming isn’t in the knowing; it’s in the doing (or not doing.)

Suppose Katie had established her vision, and maybe even went so far as to develop written goals and plans, and then dropped the ball. No follow-through. No delegation. No execution. The results would be predictable.

Instead, she was passionate about her vision, was focused on her goals like a laser beam, and was committed to executing her plans.

And so, I ask again: What if a small business owner planned and managed his or her business this way?

Back to “knowing and doing” … Let’s assume that you know what you want to accomplish and you know what needs to be done to get there. You’ve got the “knowing” part squared away.
Turning “knowing” into “doing” starts with a plan. Many business owners get tripped up at this stage. We entrepreneurs are natural optimists, and as a group we have no shortage of self-confidence. As a result, we sometimes tend to anticipate unrealistic outcomes. I frequently see small business owners whose to-do list would choke a horse. A relatively short list of major initiatives is plenty for anyone’s annual plan. Better to set optimistic yet realistic goals and achieve them than to set yourself up for disappointment by expecting too much.

So a plan is written and now it’s time to execute. Now what?

In my daughter’s case, she still had to deal with the ordinary, day-to-day stuff ... her job, socializing, paying her bills, time with family, time with her fiancé, errands, and so on. Yet, because she was passionate about her vision, was focused on her goals like a laser beam, and was committed to executing her plans, she pushed through the clutter. Pushed through the distractions. Pushed through the interruptions. Discipline allowed her to turn her vision into reality. (I’m a down to earth, nuts-and-bolts guy, so I don’t want to sound too mushy, but I believe that your level of discipline is directly proportionate to your level of passion.)

She did much of the work herself, but she also delegated much of it to my wife and to others. For many business owners, one of the following scenarios comes into play. See if you can see yourself in any of these:

• Nobody can do it as well as I can. Therefore, I may as well do it myself.
• By the time I show someone else how to do it, I can go ahead and do it myself.
• I don’t trust my employees with the information they need to handle this task, so I’ll do it myself to guard the information.
• I try delegating to my employees, but I just can’t let go. I’m there micro-managing every step of the way. So I’m 100% wrapped up in all the details, and no time is saved.
  

Learning to delegate effectively is a critical skill. It was a big part of this event’s success. Fail to delegate and your enterprise will suffer.

Finally, as time passed my daughter followed up with the various players to ensure that tasks were accomplished as planned. When needed, plans were adjusted and corrective action was taken.

You can do the same in your business. Use your passion for your vision to muster up the discipline needed. Set optimistic yet realistic goals, develop written plans, and then focus on them like a laser beam. Commit to executing your plans, and don’t allow yourself to be stopped by day-to-day distractions. Delegate. Measure your progress and make adjustments as needed.

Here’s my challenge to you: Make 2007 your break-through year. Despite past set-backs. Despite previous lack of discipline. Despite prior lack of progress. Give it your all – your best effort – for one year, and see what it does for your business.

I’ve seen first-hand the dramatic changes that can take place in a small business in one short year. 2007 can be the launching pad for your future success. It can give you the confidence and the momentum (and the cash) to build upon for years to come. Make it your best year ever.

Bill Collier's 3 Small Business Truisms

I'll use this first excursion into the world of blogging to write about my "small business success" formula. It centers around my three "Small Business Truisms", which not coincidentally are the three sections of my book, "How to Succeed as a Small Business Owner ... and Still Have a Life."

Small Business Truism #1: Your business exists to serve you; not the other way around.

I call this the "Purpose" for being a business owner.

Basically, you're not in business for the sake of being in business. You're in business to enhance your life and the lives of your family members. Your business is simply a tool - a means - for achieving that end.

This concept is easy to understand but even easier to violate. I meet small business owners all the time who say things like, "Someday I'll be able to start a retirement fund, after the business is doing better." Or, "I hope to someday get my personal income back where it was when I worked for someone else."

The first year or so after starting up, working long hours and taking a pay cut are to be expected. But, there's a big difference between getting stuck in cycle of struggling endlessly to get your business up to speed and making continuous, noticeable progress through the (hopefully short) start-up period.

If you are stuck on dead center and can't get over the hump into the land of profitability, first make sure you're cut out for the role of business owner. Are you passionate about being an entrepreneur? Assuming you are, next check your attitude toward Small Business Truth #1.

Struggling for a short time before pushing through to prosperity is noble and heroic. Struggling for a lifetime is senseless. If your company is stuck in an endless cycle of too little cash and not enough hours in your day, you can almost certainly find the solution in Small Business Truths 2 & 3 - if you have the discipline to apply them.

Best Practice: Take a hard look at any gap that may exist between your current circumstances and where you'd like to be. This includes income, net worth, time off work, or any other way you'd like to measure success. Do you realistically believe you can close that gap within an acceptable period of time? If not, what is needed to get you there? Be brutally honest with yourself. Resolve to muster up the discipline and do the hard work needed to make significant progress toward closing this gap in the next year.

Small Business Truism #2: If you don't know where you're going, any road will take you there.

This is the "Preparation & Planning" piece of business ownership.

Here, in a nutshell, is the process I recommend:

• Set personal goals. What do you want out of your business, now and in the future?
• Establish a long-range vision for the business, consistent with your personal goals.
• Establish a 3 year business vision, along with specific 3 year goals, consistent with the long-range vision.
• Develop a brief (1-2 pages max) 1 year business plan, consistent with your 3 year vision and goals.

This annual business plan is your company's guiding document. It literally guides your quarterly, monthly, weekly and daily activities. It includes the specific strategies you'll use to reach your goals, and lays out clear accountabilities - who will do what by when. Accompanying your annual plan is a marketing plan - also 1-2 pages max.

Can you imagine a house being built without a plan to guide the workers' activities? The very idea is absurd. So, why operate a business that way?

For most Americans, their home is their biggest asset. For most of us small business owners, though, our company makes up the majority of our net worth. Each of us depends on our business for our present income, our future retirement, and our family's general well-being. Yet, many small business owners drift aimlessly - letting each day's emergencies pull them in various directions.

The difference between success and failure - even between success and mediocrity - starts here. The old saying says it best: "Plan your work, and work your plan."

Best Practice: When working on next year's plan and budget, don't let total compensation-related expenses for your staff grow faster than revenue. This includes salaries, payroll taxes, benefits, and work comp insurance.

Small Business Truism #3: If you put in long hours, have trouble getting away from work for more than a day or two at a time, and don't make any more money than you did when you worked for someone else, you haven't created a business. You've created a job.

This is the "Execution" piece of business ownership.

Finally, after all the goal-setting and planning, action is the thing that pushes you across the goal line.

In my book, I identify 11 key areas in which small businesses must execute in order to achieve outstanding results. They include hiring, retention, delegation, use of key performance indicators, and 7 more. I offer a free self-assessment tool - more on that below.

Michael Gerber coined the phrase, "Work on your business, not just in your business", in his classic business book, The E-Myth. (You have read it, haven't you?) Much of the stuff you'll find in my 11 key areas of execution requires you to do exactly that.

Yes, it's hard work. Yes, it's tough to find the time to get all your other work done and also do all this "business-building" stuff. But the results 1 year, 5 years, and 10 years from now will be astonishing ... and well worth the effort.

Best Practice: Set aside a specific day and time each week for working on your business - even if it's only 30 minutes at a time. This may include planning, reviewing results, improving systems, coaching your employees ... whatever proactive activities will get and keep your business on the road to success.

www.collierbiz.com