In the next podcast episodes we will be sharing with you a part by part Quarterly Business Improvement Sessions, a workshop audio clip which has been attended by more than 100 small business owners. In this podcast series we will make you a part of an enriching experience.
Heere’s the final part podcasts series of June 2015 Quarterly Business Improvement Session: Creating a Powerful Business Plan.
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TRANSCRIPT: Episode 50
Title: Creating a Powerful Business Plan Final Part
Date Published: Januart 7, 2017
Running Time: 13:20 minutes
Also people often ask me, what do I need to plan for, in my business plan? The answer is really simple, everything. The hard question is, what do I need to plan now?
What’s most urgent, most important? Most urgent, most important, how are you going to determine those things? I would suggest that you go back to your business, and sit down and write down, what are the top 10 things that are causing pain in my business? What are the top 10 challenges that I’ve got? And then, look at them inside, what are the most urgent pains that we have? Cause there are somethings that are painfully can’t fix today, some of them are long term problems. I can promise you if you spend 10 – 15 years getting your business in a position where you’re not happy? Don’t expect it to change in 5 – 10 – 15 mins. So the reality is, what are those problems? What can you do about it and if you can’t do something about it, who can? Who can? Is this making sense to everybody?
So let me ask you the next question, on the next page, we’ve got an organizational chart. We’ll talk about organizational chart. Let’s talk about your organizational chart. Who here is a sole trader? Yup. So what is your organizational chart look like? One box, (laughs) Oh, that’s me, I’m everything. I would suggest no… You need to get a little bit detailed than that. Should we create an organizational chart, for what we have now? Or for the business that we want to become? Good answer. Did anybody the answer when I ask that question? It was no.. Because the actual answer is, it’s the business that we want to become. Because if you create an organizational chart, with your vision and your mission in mind, your future in mind.
What’s your organizational chart going to look like? It’s going to be a one box that says me? No, What are we going to have? CEO, for the management. Let’s get to the really important staff Hayden. Personal Assistant (laughs), for the management, and work your way down. Because as a business owner what are you responsible to do? You’re the HR manager, you’re the IT manager, what else are you? You’re the finance manager, you’re the marketing manager, you’re the sales manager, you’re the customer service manager. You are everything inside the business. And as you build your team, some of those names will start appearing, in other boxes. So when you’re a sole trader, you create this great organizational structure, where you really want to take your business, where you want it to be. Then look at things, each individual roles got what? Position, Description. It kinda cool to know, whos going to do what right? On your new empire? What else do we going to have? We need KPI’s Who knows, uh let me ask you a better question. Who doesn’t know what a KPI is? Go on and stick your hand up, it’s okay. Cause if you knew everything you wouldn’t be here. And believe me the amount of training that I do highlights that I’ve got more to learn. So it’s all good, a KPI is a Key Performance Indicator. What is a Key Performance Indicator? “Target.” Target, no. Because target can be missed aren’t they? “Bench Mark”, Bench mark, yes. The KPI is the minimum standard by which I’m willing to accept your performance. Which may deal with kludges and the like, but you should also have a budget around it.
If your team don’t have KPI’s and you haven’t got a KPI into a particular position, how does somebody know that they’re doing a great job, other than the absence of getting yelled at, not actually a positive reinforcement isn’t it? You likes to know when you done a good job? Right, now that’s a part of your KPI’s, your Key Performance Indicators so I know within myself, so If you start getting into my ribs, and tellin me I’m not doing a good job, I’ll get back to the KPI’s. Have I done what you’ve expected me to do and more? How can we expect the other ways if we haven’t given them KPI’s, to understand beside telepathically, and by the way, do we have any telepaths in the room? No? Besides telepathically how you going to communicate this message to those around you and to yourself. One of the really exciting things when you sit down and you start creating KPI’s for yourself and budgets for yourself, when you’re a sole trader. Or when your name appears in multiple boxes in your organizational structure. Why? Because when we work for somebody else we have the really great opportunity of somebody else holding us accountable, didn’t we? Yeah?
One of the reasons why we went to business, for dominantly for many of us, because we didn’t really like getting told what to do. True or true? True.. So if you don’t do something you just didn’t happened to get around whether you just didn’t make that standard, who’s going to get up you’re ribs? Business coach, whoah yeah, (laughs) I’ll stick you fifty with that one later, yeah, yes! I say the reality is, you can’t have extra no forces, but what’s the most powerful force that we can have? “Your own” Your own. This is the one, where you wake up in the morning, (shocked expression). How many business owners here have been sick as a dirty dog barely able to drag your car case out of head, and you still turn up and go to work. Keep your hand up if you would’ve done the same thing working for somebody else. Right, probably not, yeah this ethics hey men, I get ten days sick leave I’m going to suck that up right? Now, if were going to push ourselves when we have those things. How easy is it when you work for yourself? “Yeah, I’m going to sleep in”, “Oh yeah men, I’ll be caught up on a job”. “Sorry man, I’ve just blown out and uh I can’t be there until 11 o’clock”, (snores) “Another girls and red wine please” (laughs) That’s right.
So who can let ourselves down, we do. And we do it more than anything else, one of the things I love about my wife, and for those of you know my wife, is that she’s the first person I tell that I’m doing to do anything, why? That’s right, she’s the first one to call BS on me faster than anybody else, even if I’ve got 99% done, I still get from her, “I don’t care” you’re still 1% short get on to it.” Now I’m not suggesting you’ll all going to marry my wife, it’s just one her, but, who else do you need to do to surround yourselves to support your own drive, your own inclination to get things right. That has to be part of your business plan. Who’s ever put that in a business plan? Who’s my by the way, I’ll call them unreasonable friends? They’re my friends, but they are going to stop me by letting myself down. Put it in your business plan. Find someone. And don’t find someone who’s going to let you away with crap either.
Couple of other quick things before I wrap up, my section. Before I hand over the lovely Meghan, is I want you to just flip, a little bit further forward, to the next page, where it talks about key personnel. And there’s so much more, now you know why, I could probably run this in a day. We’re getting through a lot so, there’s a lot more you feel to cover. Key personnel, why do I want to talk about a key personnel in your business planning, when half the room here is a sole trader?
“Cause you cannot make it forever”. You make not be forever?
“You need to surround yourself with a good people externally” Externally, that’s right, they maybe subcontractors, “to help you grow” yeah, one of the great points of leveraging people.
People.Technology. Money, Finances. “Your suppliers” Your suppliers, consumers can certainly be a part of your key personnel. I’m not just talking about people who were there, that are on the payroll. One of the biggest mistakes made by small business owners is a mis-hire, one of the most expensive mistakes you can make is a mis hire. It’s not just the money you spent recruiting them, developing them, training and inducting them. It’s the damage they’ve done to their business into yourself along the way, and it’s the opportunity cost of what they should’ve got you, if they were the right people in the first place.
And it’s really hard, when you’ve only got a small team, cause you might have got someone, who’ve got a really good skills set, but their attitudes sucks. Has anybody had one of those? Or more than one of those? Yeah? And it’s really hard because, on one side of you, you’re saying “but I can’t afford to get rid of this individual, they’re just too good at what they do. And on the other side you’re saying, “Men, if I could actually carry a gun, or allowed to use it, we’d be going for a short walk with a shovel and a bag of lawn. And it’s not what I call a great way to exit strategy with team members. But, making sure that you’ve got the right people, whenever possible hire, for attitude, train for skill, but that’s not a waste possible in a small business, is it? Not always possible. Sometimes, you’ve got to make the decisions, on what you’re prepared to tolerate.
But I will promise you one thing, and some of you heard it from me many times, the day that you think someone shouldn’t be with you, is the day that you need to start making a plan that they no longer going to be with you. And the only difference that’s going to occur, the biggest difference that’s going to occur between that decision point, and that decision action, is the amount of pain that you can tolerate.
Because if it really that painful, you get of your clacker, you jump out and you’ll be straight into recruitment. But we only get around of it yet, they cause me pain but not much pain, I can still put out of it for now. Why do we it? Whys surround ourselves with people who aren’t going to help us achieve our goals? Because before you get out of bed in the morning. It’s cost you money. Because before you make your first sale for the day, the risk is carried on your shoulders, our shoulders, and it’s tough. It’s rugged. So we going to make sure that we bring those people into our team who’re going to be supportive of our vision.
And on that note I’d like to say thank you, look forward catching with you after today, but take this away. Do something with it. Because you’ve got all really exciting opportunities, to take your business into a whole new level. And the first place it’s start is with you and your P-L-A-N, your plan. Thank you very much.