Last week I was reviewing the course material for the Women’s Council of REALTORS’ latest Performance Management Network class. This made me think about how business is created, nurtured and mature into successful ventures.
There’s nothing new in the business of business. It’s still all about the basics.
Let’s talk about where it all begins: planning
If I was in charge of the curriculum for high school students, everyone would be taught how to create a business plan and given an opportunity to start one or two companies during their studies.
When I was in junior high school, I joined the local Junior Achievement chapter. My company made Christmas tree skirts which we later sold to our parents.
The lesson I learned from this:
cheap material + even cheaper labor + parental connections = profit.
Find your unique gift
Create a product, or fill a need
Sell it to your network.
How did I get that from felt skirts?
Our product wasn’t just a cheap, poorly constructed Christmas accessory. It was a unique one of a kind handcrafted heirloom that was priceless to our target audience.
What is your product?
What makes it (or you) unique?
Who is your audience?
Why do they want your product?
Who is your competitor?
What are they doing better (or worse) than you?
What is your cost of sale? In other words, what does each sale (income) cost you to produce (expense)
How will you market your product to your audience?
What will that cost?
Where do you want to be, in terms of production, in 1 year-2 years-5 years?
What will it take to accomplish this?
All of these questions (and more) should be answered in your business plan. Some people prefer a more in depth strategic plan over a conventional business plan. In a strategic plan you create your company culture as you create your plan for success.
A strategic plan includes the company mission, vision, value statements and an expectation about how business will be conducted. If you plan on going into business with partners this step is vital.
Just like a good marriage, a good partnership is based on shared values, shared goals & good communication.
Who’s minding your business?
Do you have a plan?
Are you working your plan every day?
Every action you take should move you toward your goal. Without a plan you’re just reacting to the environment; with a plan you’re creating your future.
