Recognizing and Managing the Cycles of Your Business

Your business moves through eight cycles, each needing focused

attention depending upon where you are and where you're headed

with your business. “Where you’re headed” is your definition of

“success.”

Good planning requires the ability to know the difference between a budget, a forecast, a

projection, and a financial plan. It

requires that you then know how to link them

together through a clearly communicated presentation that also explains how you're going to get there.

PLANNING

INCOME

There are three ways to view your markets, and

they all must be aligned: how you approach your

markets and acquire sales; how you deliver to those markets; and how you price and sell

your products or services. You must tailor this 3-Way look at your revenue streams and

collections to maximize results and cash flow.

PEOPLE

You only have two assets, people and products, and it’s

people who make the product. Given your definition of success, you must hire right,

align your employees with your vision and goals, tap into their

discretionary efforts, keep them on track, motivated, trained ,

and challenged.

OPERATIONS

Everything you wrap around your assets and people to deliver your products and services

needs to be coordinated, delivered just-when-you-need-it,

and be at the lowest cost and effort level required to do that

successfully. You must plan and grow

operations to scale as you do, according to

your plans.

RESOURCES

Having the right resources is critical to

support the people who deliver your goods

and services to the market. Knowing how

to buy right, make things last, and make

sure they are adequate, scalable, yet

affordable isn’t easy, let alone figuring out

how to finance or fund your purchase.

RESULTS

You need a dashboard to evaluate results; how to discover and

track the activities you manage to be reliable, effective, efficient, and

profitable. Standard metrics are needed for

profitability and success, along with reporting methods

that help you scale, be productive, efficient,

reliable, and compliant.

GROWTH

How scalable is your business? Knowing the difference between a “Life-Cycle” business and an “Investable Business” and then how to manage and fund the growth of

your business becomes critical for you to

succeed the way you want to.

FINANCING

Whether its financing operations and people, intrinsic or organic growth, or scalable momentum, you always need to know ahead of time where your next “investable dollar” is going to come form and be spent.

These eight cycles are interdependent and

each have cycles within. Viewing your

business from this perspective will help you categorize and

understand everything that’s happening or

should be happening within your business. Which cycles are your strengths and which

are your areas of weakness?

NOW WHAT?

HOW DO YOU DEFINE SUCCESS?

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