Business Assessment When Setting Personal and Business Goals
In a recent article, I discussed setting personal and business goals. If you haven’t read that article, read it now. I’ll wait the four or five minutes you need…
Okay, so now you understand why it is so important to have personal goals for starting a business. You want a business that delivers your ‘why’.
The reason this is so important is that you must own a business that delivers these personal goals. If it doesn’t, you will be unhappy and dissatisfied. You will be likely to lose interest in the business, and you certainly won’t achieve your goals.
There is no win when you own a business that doesn’t deliver what you desire it to.
So, how do you ensure you don’t fall into this trap? By ensuring your personal and business goals for starting a business align with the business model.
How to ensure that your business model fulfills your personal goals
A business model is a plan for how the company operates, creates revenues, and increases its value. It explains what the company does, who it sells to, and how it makes money. To ensure your business model reflects your personal goals, you should first ask yourself these questions:
What do you want to achieve personally from this business?
Think about what you want to achieve now and in the future with this business. What are your expectations of how it will grow? What are your goals in the long run? Your goals need to be realistic and achievable. You must have a clear understanding of what you want from this business, as it will guide the direction that you take with it.
You can set these goals for several reasons, including:
You want to make enough money so that you can retire comfortably
You want to be able to give back and help others
You like the idea of being self-employed and having complete control over your workday
Do you have a particular vision for what this business should be?
Your business should have a strong vision for what it wants to be and what it wants to accomplish. The customer should know exactly what they are getting into when they purchase this service from the company. The company should also be clear about its values and purpose.
Who are your target customers or clients?
Choosing a target customer is an important decision for any business. It is necessary to understand the audience that you are trying to reach with your product or service, to be relevant in their lives.
What is your competitive advantage?
Competitive advantage means being better than your competitors at doing something that needs to be done. It helps you to compete successfully in the marketplace and includes things like:
Delivering greater customer satisfaction
Manufacturing higher-quality products
Selling at lower prices without compromising on quality
Competitive advantage is important because without it you will find it hard to survive and grow.
How will you generate revenue or otherwise make money?
The answer to this question largely depends on the type of business that you are running. Some businesses may generate revenue through product sales, while others may generate revenue through service charges.
Some ways to generate revenue include:
Running advertisements in your store
Hiring an advertising agency to run ads for your company
Selling products at higher prices than competitors to gain a profit margin
Selling a membership so that customers can enjoy discounts and access more products
Do you need more assets and resources to make the business work as planned?
Investing money in a business may be necessary for many reasons. Those can include marketing campaigns, new equipment or software, and research and development. If you do not invest in your company’s growth, it might stagnate.
As a franchise owner, many of these issues are likely to be taken care of by the franchisor under the terms of your franchise agreement.
Three key considerations when setting personal and business goals
When planning your business life, you need to figure out what you want to achieve and what it will take. What many first-time entrepreneurs fail to do is think of the here and now. In my experience, there are three key considerations you must make:
What is the day-to-day for you as a franchisee?
The first thing to consider is your daily involvement in the business. Consider how much time you are willing to commit to the business each day. Do you want to be hands-on and always in the office, or do you want to work in an oversight capacity?
If the business demands 40 hours and more from you each week, it’s not a business if you want to invest and stand back.
Where will you be working as a franchisee?
Do you enjoy a commute, or do you want to work in a business around the corner?
This is a key question to answer, but you should also consider the culture of the franchise opportunity you are considering:
Will you be expected to wear a uniform, or can you turn up in flip-flops?
Can you work from home?
What will your employees be like?
Finally, what about the franchisor themselves – are they people you can get along with?
What will be your work schedule?
The schedule for a franchisee is important to understand because it will determine the time commitment needed to operate your business. Some require fewer hours than others. Others may require you to work weekends or unsocial shifts.
You have your own life to lead as well as a business to run. Don’t take on a franchise that ties you down to hours you don’t wish to commit to – or be prepared to make compromises to your life schedule.
How to determine if a franchise model is right for you
Evaluating your needs, personal traits, and financial situation can help you determine whether a franchise business is a right fit for your goals. But the analysis can be difficult for two reasons:
First, you are often too close or emotionally tied to a franchise opportunity – especially if it’s an opportunity you have fallen in love with. (What is it they say? ‘Love is blind’.)
Second – and this is especially the case for first-time franchisees – you may not have the experience to decipher all the details of the franchise agreement.
The answer? Always work through a franchise opportunity with a qualified and experienced franchise consultant.
For the answers you need and an honest and open approach to your needs and goals, book a free consultation with me.