Business 101: The Foundation

Four questions every business owner should be asking themselves on a regular basis

BY JAMES HOLLOWAY

I

n the business world, technologies and methodologies constantly evolve and change. However, the solid foundations and principles that build those businesses tend to remain constant.

The parable of the “two builders” comes to mind. If you are familiar with the story, you know that both builders had the same level of knowledge and access to the same materials. However, one builder built his house upon cheap, easy-to-access sand. The other builder built his upon costly, hard-to-reach rock. When the rains came and the waters rose, the house built upon the sand was seriously damaged due to its poor foundation while the house that was built upon rock was still standing after the storm passed.

So what are the foundations needed to create a new business, solidify your current business or enhance the speed of your growing business? It will be different for each business and business owner, but it starts with these four questions.

Question 1: Where Are You Now?

You have to know this before you can even think about going anywhere else. In your car, your GPS has to pick up the signal before it can properly guide you to your destination. Do you know where you are?

If you already have a business, what kind of numbers are you producing every month and how much is going out the door in terms of expenses and investments in the company? If you are looking to start a business, why do you want to do so? Is it a last resort because you can’t find a traditional job in the field you want, or is it something you’ve always wanted to do? What is your attitude toward business?

It doesn’t really matter what your answer is because it will be different for each person, but you have to know where you are with your business before you try to go somewhere else.

Question 2: What is Next?

Now you need to figure out where you are going. No one can tell you where that should be; you will have to decide that for yourself. What’s next could be a dollar amount (e.g., $1 million in gross revenues). It could be a physical location (e.g., opening a second store across town). It could be something as simple as attending a seminar or reading a book that can help you learn how to be a better business owner. What’s next is whatever goal you set for yourself and your business.

Question 3: What Are Your Assets and Resources?

Once you know where you are and where you are going, you have to know what you have that you can use to get there.

Assets and resources come in many shapes and sizes. People (such as a mentor, family member, close friend and sometimes even co-workers or employees) can become an asset to your endeavor. But when it comes to people, do not exploit them. Make sure you let them know you appreciate their contribution. If possible, reward them or show your gratitude to them in a special way.

Money is probably one of the first resources that most people think of, but it is not the first requirement to getting your efforts underway. If you are just starting out, there are a number of services you can access for little or no money and upgrade as you grow.

Seminars and webinars provide you with an opportunity to learn from an expert in the field who is willing to share some of their knowledge with you. These events can range in price from just a few dollars to several thousand dollars and can last anywhere from an hour to two or three days.

Those are just a few of the types of resources and assets that business owners frequently utilize to start or grow a business. You may have access to others not listed here.

Question 4: What Do You Do to Get There?

Another way to put that is: “What is your game plan?”

Let’s break it down. Wherever you are … you are. You’ve identified what’s next for your business, and you have determined what your assets and resources are.

If the assets and resources you currently have will be sufficient to get you to what’s next, then you need a plan to get there. If you are lacking in resources, you should identify what you need and your plan should first include a way to acquire those resources. Remember: You need to come up with your plan, and it needs to be based

on your business and your goals.

If you don’t know where to begin, heed the advice of Steven Covey: “Begin with the end in mind.” Whatever your end target happens to be (whether it’s a number of new customers or an amount of revenue being generated each month) is where you need to start.

Once you’ve identified your end target, put a deadline on it. When do you want to have that end result? Two years? Five years? Ten months? Next week? Is it realistic to reach that target in that time frame with the resources you currently have and/or the resources you can acquire within that time?

After you’ve identified a target and set a deadline, you need to break it down into measurable portions so you can see how well you are progressing toward that goal. Maybe you need a weekly status check. Maybe you need a monthly progress report to yourself. Maybe it is a 10-year plan and a quarterly checkup will be sufficient. You will have to decide what works best for you and your plan.

Regardless of how you break it up and segment it out, make sure you write down your plan in your own handwriting (not just on your iPad or laptop). For some reason, writing out your goals in your own handwriting has been shown to have a positive effect on achieving those goals. Put your plan on the dry-erase board in your office. If you don’t have a whiteboard, get a couple pieces of poster board and tack it to the wall somewhere that you will see it every single day.

Read over it. Keep an eye on your progress. Make adjustments when necessary. You may even want to find someone that would be willing to mentor or coach you and help keep you accountable to your goals.

These four questions are not groundbreaking. These concepts have been around for decades. The beauty of these four questions is that they can be used when you first start a business and they can be reused weeks, months or even years later to take the business to the next level. z

SouthEastInstalls.com TraVerseBlog.com Learn2Install.com James Holloway began his window treatment career as a full-time installer in 2001. In 2009 he started his own business, South East Installation Solutions, an “installation only” company based in Greenville, SC. His professional writing career began in 2013 with the launch of “TraVerse: A Window Coverings Blog.” He has also been asked to speak at various events including WCAA chapter meetings. His latest endeavor is the creation of a hands-on installer training facility.