Sunday, November 19

Are you Small Minded in Business?

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It is far too common to be “small minded” in business, yet it takes a particular type of person to have the Vision to create something much bigger than a small café – perhaps a number of cafes or maybe a chain of cafes all over the globe.

Whether you are just starting or have been in business for many years, it sure helps to have a ‘vision’ in mind.

Sit back, relax and visualise your ideal business and what it looks like – forget all the real world stuff – be imaginative, creative, innovative – think BIG!

  • What is the ideal size of your business?
  • What services/products are you providing to your clients?
  • What is special about your business?
  • Why are you so successful?
  • What sets you apart from everyone else?
  • How many staff do you employ?
  • Do you have offices around the world?

All the international businesses started from someone’s idea, an innovation and of course the VISION.

These people were not stopped by the doom and gloom merchants, who kept asking them to be realistic and sensible.

So before we get into the practicabilities and the nitty gritty – tell me, what is your vision for your business?

Is this just daydreaming or is there a method to the madness? Well, they say that what the mind can conceive – you can achieve! You need the ‘vision’ before you can go about achieving it.

Most of us want to grow our business to a particular size – but the optimum size for your business really depends on the type of business, your market, and so on. Don’t simply be concerned about the sales but focus on the bottom-line profit as well. Often as businesses grow the profit margin can decline –therefore higher sales do not always lead to higher profit. You need to think about that fact carefully or you may be disappointed. In most businesses, profitability is at its highest when the owners are working hands on and the business is running on a small scale.

The next size, between small and medium-sized, is usually not as profitable, and profits don’t pick up again until you reach the next level and become a medium-sized business. In my own Firm I remember our profitability was very good when I employed just one other person and did most of the professional work myself – I was on the tools, so to speak.

As a few more staff were employed and while undergoing training and development, the profitability suffered. Once the training, recruitment and development of staff settled down – so did the profitability – and we move to the next stage of our Firm’s development?

During the growth phase, the businesses need to invest heavily in people, systems, developing products/services – this has an obvious impact on the bottom line.

You need to be aware of this and must make a conscious decision to keep growing – if that is your vision.

If you intend to expand your business, try to get to your most profitable level as quickly as possible.

You will never have all the answers; like the rest of us you will learn as you go. Remember, you can always review and revise your vision, in fact it’s an ever-evolving thing. You need to keep revisiting the vision and may change it as your goals and objectives change. It is helpful to know early on whether you are thinking about a single cafe or a chain of cafes. Depending on which option you are after, your strategy and approach to the business would of course be dramatically different.

What is your vision for your business?

Take a few moments to write your thoughts down.

This post was first published on our strategic partner’s website: www.amerq.com

 

 

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abdurab@digitacker.com'

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