Posts tagged with: begin with the end in mind
You’ve heard these phrases for a life time:
Be Prepared, Be Proactive, and Begin with the End in Mind.
These are core disciplines for success and prosperity as a business owner too.
For the Boy Scouts of America, the Boy Scout Motto BE PREPARED means a scout is always in a state of readiness in mind and body to do your duty.
The motto of the Girl Scouts of the USA also is BE PREPARED. For Girl Scouts, this means being prepared at any moment to face difficulties and even dangers by knowing what to do and how to do it.
Stephen Covey wrote The 7 Habits of Highly Effective People®, almost 20 years ago. It’s been a top-seller for proven principles of fairness, integrity, honesty, and human dignity. These habits are still essential and apply equally when you are planning to complete the lifecycle of your business. We’ll only look at the first two habits here.
Habit 1: Be Proactive
Being proactive is about taking responsibility for your life. Proactive people focus their time and energy on things they can control. The problems, challenges, and opportunities we face fall into two areas–Circle of Concern and Circle of Influence.
Proactive people focus their efforts on their Circle of Influence. They work on the things they can do something about.
Habit 2: Begin With The End In Mind
Sometimes people find themselves achieving victories that are empty–successes that have come at the expense of things that were far more valuable to them, e.g., playing 1000 hours of a video games instead of attending classes and flunking out of college.
If you don’t have a blueprint to build a house, the framework you build may never qualify for an occupancy permit. If you don’t have long-term as well as short term goals and objectives, you could Begin With The End In Mind is-the ability to envision and plan for what you cannot see at present. excel in the moment and never build a nest egg for the future.
It is based on the principle that all things are created twice. First we create it in our minds. Second, is the actual physical creation/execution.
To Begin With The End In Mind for your life, start by drafting your own Personal Mission Statement focused on what you want to be, do, and have (in that order). It is your plan for success, reaffirming who you are, focused on your long-term goals. Your mission statement makes you the leader of your own life, creating your own destiny and securing the future you envision.
Plan Your Exit From The Outset
When it comes to your business, now and long-term, you must roll up all three of these principles:
- Be Prepared
- Be Proactive
- Begin With The End In Mind
into one and Plan Your Exit From the Outset. If you take business ownership responsibility seriously, then it’s integral to your job to be prepared, to be proactive and to begin with the end in mind.
As an owner, that means, you will:
- Design Your Business Mission Statement
- Communicate it to all stakeholders
- Be prepared for all contingencies (death, divorce, disability, disagreements, and departures) and continuity challenges (severe weather (fire, flood, or blizzard), power outages, dangers (hostage, crash, or a state of emergency). Can your business withstand any of these surprises? How prepared are you, your team, your business, your systems?
- Eliminate excuses and procrastination that murder your business
- Be proactive about building your business as a wealth-producing asset not just an income stream:
- Develop Clean financials
- Grow cashflow balances
- Complete and up to date books, records, minutes, resolutions
- Document systems, procedures, policies
- Execute succession planning and leadership development
- Reduce customer or vendor concentrations
- Drive operational excellence and benchmarking intrinsic value
- Track and measure value drivers
- Become more strategic and redundant to day-to-day operations
- Expand market position
- Explore your endgame in the business and beyond
- Begin with the end in mind
At its core this means having your affairs in order and your plans for a business transition mapped out early to ensure you can cash out on your terms and on your timeline and transition to the reinvention of your dreams (some combination of a new venture, adventure, avocation or simply your favorite hobbies) knowing your legacy and dynasty are secure. This can only be achieved with early and consistent long-term planning, over the 2-5 years before a transaction is in sight.
That’s why early exit planning is the only option if you are committed to all three principles of Be Prepared, Be Proactive, and Begin With the End in Mind. If you’d like to have a conversation about being prepared and being proactive in your business, call us at 508.820.3322 or email us.