How do you plan to build a business? – think of a house!
So, great news your bank said yes to the mortgage, you’ve got those fancy grey stone bricks you’ve always wanted and secured the land. What do you do now? Do you start building straight away – a wall here, a doorway there or do create a blueprint?
Depending on your budget you will employ an architect who creates a full set of drawings and perhaps even a 3d model. You see the house in all its detail front, back and sides, room by room, floor by floor. Everything is detailed from doorways to the position of electric sockets. Then once building commences, everyone works to those drawings and the architect ensures they all stick to the plans and at the end you have the house of your dreams. Your house will last for decades, maybe even centuries. Something of immense value to possible be sold for profit or handed down in legacy to your children.
So why is it when we build a business we often fail to do the same. Our businesses can be infinitely more complex, so shouldn’t we create a clear blueprint or model for our business?
As business owners, the structure of the business often stays in our head or we develop it from our gut. Growth and change become organic happening in unplanned ways with different departments changing their own structures without a clear sense of the overall business. Communication also suffers as there are no clear set of plans to work from.
The resulting business often has no resemblance to the planned business in the owner’s head and worse still costs become uncontrolled as planning steps back with reaction, we hire and fire quickly and firefighting taking over to prevent work coming to a halt.
So, what hold us back why don’t we do this? Often the problem is we simply don’t have the tools or the experience.
Many business owners are experts in their field but not necessarily trained in creating a business model! It also takes time, thought, and energy, which most owners are directing at running their business, solving daily issues and making money to pay bills. Modelling like most business activities follows a process. Choose a good process and you and your team can model your current business and create the next level, be it a complete change or simply extended what you have in a controlled system.
Think of your business as a building.
Plan the outcome and create a model that envisions accomplishing those goals.
Then lay the foundations and get building the structure. Think of it as a bungalow first – growing to a skyscraper, each transition planned through a new model.
From that plan you can create a time frame, a clear organisation chart for each stage of growth, plan resource requirements, establish processes and ensure everyone is facing the same way working to their specific targets.
This ensures materials are delivered on time, the right people are in the right positions, customer are happy, costs are controlled and all runs efficiently and effectively.
After all your business is often your only source of income, your future pension and even your legacy to your children. As Jim Collins would say create a business which is ‘Built to Last’.