Question of the Week
Your Business Building Template
Happy Friday, all!
I’ve had multiple calls this week with new business owners asking what they should think about when starting or joining a new business.
How should I approach it? What should I expect? What questions should I ask?
I love this initial push to create your own thing. Having worked with many business owners throughout the years, I’ve developed my process based on what I’ve found most helpful and impactful for clients.
In that vein, I want to offer a checklist that helps you organize all the moving parts you need to consider when starting your business.
Mission, Vision Values
When creating your business, great news is that you can build whatever you want. The challenge to that is identifying what exactly that business is. To determine what you want to develop, you must get intentional about your Mission, Vision, and Values.
- Mission – what impact/legacy do you want your business to leave?
- Vision – Who do you want to serve? How do you want to serve them? What kind of life do you want the business to give you? Your business can be both impactful AND profitable.
- Values – what lens will you use to make decisions regarding accomplishing your Mission and Vision?
I take my clients through a few tools to help get clarity.
- Values Exercise
- Kinder Questions
- Client analysis – analysis of your current clients
- Niche Training Overview
- Ideal client avatar worksheet
I’m happy to share any with any of you who would like them.
In addition to these intangible aspects of the business, think about some tangible details like:
- How much do you want to take home from the company?
- How many hours a week would you like to work?
- How many clients do you want?
- What size of a team would you like to work with?
Figure out where you are now
Now that you know where you want to go, you need to figure out where you’re starting from.
- What assets or cash do you have to start the business?
- How much are you earning and spending? Would the business need to replace that in total or partially?
- Any debt that will hinder your cash flow or get in the way of future financing?
Seeing where you are with your assets, liabilities, and expenses helps build awareness of the distance between where you are and where you want to be. Some practical documents that help with this are credit card statements, tax returns, or online tools such as Mint or You Need a Budget.
Mapping out getting from where you are to where you want to be
Now, the fun part – creating your game plan. Now that you know where you are and where you want to be, you can start mapping out the next steps to get from one place to the other.
This process usually starts with the foundation of the business.
- Business Structure – Do you want to be a sole proprietor, partnership, or S-Corp
- Operating agreement – This document outlines the ins and outs of how the business will function. The mission, vision, and values exercises will help give more clarity.
- Accurate/Transparent books – Wave or QuickBooks
- Cash Flow System – the profit-first system.
- Pricing – charging for your value (value pricing), not your time. In other words, charging flat fees rather than hourly
Build -> Measure -> Learn
The last step is getting started. While it’s tempting to have things perfectly set up before you make a move, getting started, seeing what happens, and iterating will be your best guide to the next right step. Momentum serves you better than motivation. There’s no time like the present.
Quote of the Week
“The journey of a thousand miles begins with a single step.” – Lao Tzu
Task of the Week
The end of the year is a pivotal planning time for new business owners. If that is you, start planning now! There’s no time like the present.
I’d love to hear what you’re struggling with as a new business owner. What’s your biggest obstacle? What gives you the most anxiety? What are you most excited about? Contact me at the links below.