To run and grow a profitable business, you must have the end in mind at the beginning. But how do you do this? What questions will help you assess your endgame? What do you need to measure along the way?
In this episode, you’ll learn how to design the end at the beginning, how to be strategic in your next steps, and what KPIs to measure.
Have the End in Mind at the Beginning
To begin with the end in mind, ask yourself:
- What am I objectively trying to achieve?
- Why am I doing what I’m doing?
- What’s my endgame?
Know where you want to go and why you want to get there.
“When you’re starting a business, one of the more important things to think about is what the end objective is.”
Once you know your end goal, you can set up and structure your business for long-term success.
“You grow from the journey, but you need a plan for the destination.”
Is your business about creating income, fame, freedom, or the solution/product you offer? Your answer doesn’t matter as much as your ability to understand where you’re trying to go.
If you don’t have a real endgame plan, you’ll have more growing pains and questions as you progress than if you had an endgame plan up front.
Build an asset with an endgame in mind. This changes everything about how you run your business. Look at your business with the eyes of the investor.
Know What to Measure
Successful businesses measure things. When you know the end at the beginning, you know what to measure. The metrics to care about are those that move your business forward and toward your end goal.
You should know the answer to these questions:
- Who is my customer?
- What do they like/dislike?
- What solution do I offer?
- What are our margins?
- What’s the lifetime value of one customer?
For inventory-based businesses, the two key metrics in the cash-conversion cycle are:
- Inventory turns
- Daily sales outstanding
If you don’t know your endgame, you might track the wrong information. Know your Key Performance Indicators (KPIs) such as website impressions, repurchase rates, sales calls per month.
The end isn’t always what matters most. The journey and your growth are important.
- Start with the end in the beginning.
- Design a goal and framework.
- Track and measure your KPIs.
- It’s good to know what’s for dessert.
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