As the winter chill settles in and our gardens grow barren, the planning for the next planting season begins. Imagine you’re planning your garden – you must decide what you want to grow and where to plant it. It’s a choice that requires thought and knowledge. For instance, pumpkins need full sun to thrive. If you choose to plant pumpkins, you need to ensure they get the sunlight they need. Similarly, in business, your success depends on the choices you make, the targets you set, and how well you plan and position your efforts.
The power of choice in business
Take the example if you are growing your business, the primary goal is to strategically create a business that works for you, with profitable revenue streams backed by an effective business model to support your goals without giving away your time or products through over delivery or discounting. To achieve this, you need to work on what your most profitable revenue stream would be and work backwards from there. It’s like deciding whether to plant your vegetables in the sun or shade based on what each plant needs to thrive. Knowing which revenue stream brings the most margin is really powerful information and planning your business strategy around it.
The Pumpkin Plan
A great example of how it all can work is outlined in the book by Mike Michalowicz
The Pumpkin Plan: A Simple Strategy to Grow a Remarkable Business in Any Field.
Throughout the book, he compares growing a business to growing giant pumpkins. One of the key messages is that you need to cut off the smaller, less promising pumpkins to allow the best ones to grow even larger. In business, this means focusing on your most profitable activities and letting go of those that don’t contribute significantly to your growth.
A couple of good quotes from the book:
“Think big, but start small. Plant the seeds of success and nurture them to grow a thriving business”
“Identify your most profitable customers and find ways to attract more of them to your business.”
Working backwards to set targets
Setting targets is crucial in business. Without clear targets, you’re like a gardener planting pumpkins in the shade – they simply won’t grow. You need to know where to focus your efforts to achieve the best results. This process involves working backwards from your desired outcome.
For example, let’s say you want to reach $100,000 in revenue per year. You need to break this down into actionable steps.
- How many services, clients or projects do you need based on your service pricing?
- What mix of services will generate this revenue?
- What is the average margin for each service / project / revenue stream?
Understand what it takes to deliver each client / service / project type … is the bottom 20% of your services taking up 80% of your time servicing them? If you remove this revenue stream / product / service from your model does this allow you to focus on the higher value client delivery and create less stress?
By breaking down your goal into smaller, manageable targets, you can create a clear path to success.
The importance of focus for growth
A real estate agent I know, fresh from her training at Ray White, understands this well. At 24 years old, she’s stepping out on her own. She knows that to succeed, she needs to focus on specific targets. How many phone calls does she need to make? How many appraisals does she need to generate each month? How many houses does she need to sell to reach her revenue goals? By setting these targets, she can measure her progress, take breaks when needed, and avoid the constant grind that comes from not having a clear plan.
Monthly reporting and mini planning
Regularly reviewing your progress is another key aspect of staying on track. Monthly reporting allows you to look forward and make necessary adjustments. When deciding whether to take on a new client or service, you should do a mini planning session to ensure it aligns with your overall goals. Research shows that by writing down your targets and keeping them visible can be a powerful motivator and reminder of what you’re working towards.
Setting targets and planning effectively also have significant benefits for your focus and mindset. Constantly worrying about what you need to do can be overwhelming. By setting clear targets, you can take a break when needed, knowing you’re on track and not feel guilty for what you think you “Should” be doing. This approach reduces stress and helps maintain a healthy work-life balance when running a successful business.
Tips and key takeaways
- Without clear targets, you risk wandering aimlessly, much like planting pumpkins in the shade. Your business will have trouble thriving if you don’t know where to focus your efforts and you are always saying yes to everything, always.
- Identify your end goal and break it down into smaller, actionable targets. This approach provides a clear path to achieving your objectives. Then you can measure against these on an ongoing basis.
- Focus on what matters most. Just as a gardener chooses the right spot for each plant, you must decide where to concentrate your efforts to ensure business growth.
If you currently do not know where to focus your efforts, use your historical business information to gather insight and find out more, take a deep dive into a couple of recent services or projects and complete a review. Look at what resources it took to deliver, understand truly what it took to deliver, and consider how it really impacted the business not just with revenue but effort, even consider giving each one a rating to begin to compare.
Whether you’re planning a garden or growing a business, it’s all about making the right choices. Set clear targets, plan effectively, and focus your efforts where they will yield the best results. By doing so, you’ll not only achieve your goals but also create a healthier, more balanced approach to work and life.
