Q: My dream of starting my own
business is finally becoming a reality, but I'm still not sure
I'm going to be a success. What do I need besides my enthusiasm
for my business to make it?
A: Many people work very hard to
launch their own small business. They take business courses,
network with leaders in their community and do whatever it takes to
turn their dream into a reality. Then they are faced with something
they might not have thought about when they were planning their
business: How do you move from passion to profit?
In other words, as an entrepreneur, how do you bottle the
excitement and enthusiasm you have for your business and create a
plan that will lead you down a path to profitability? If you are
like most people, the transition will be a real wake-up call, and
you may suddenly find yourself in panic mode, struggling to meet
payroll and cover expenses. But instead of panicking, start
planning. Planning will be the key to your success. Without a plan
in place, you are sure to fail. As a rule, most entrepreneurs hate
to plan and instead rely on the "shoot from the hip"
management style.
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To go from passion to profit, follow these simple techniques,
strategies and tips for managing your business successfully:
1. Set goals.
Keep a written record of what it is you are trying to
accomplish. This may seem obvious, but I am constantly amazed at
how many entrepreneurs do not take the time to do this, often
believing that their company is too "early stage" or
"unproven" to do this. No company or business concept is
too young to establish goals, measure success and hold workers
accountable for progress on the path to profitability.
2. Communicate those goals.
Some business owners set goals, but then fail to share that
knowledge with others in the organization, employees, consultants
and key business partners. Some entrepreneurs are very good at
communicating their passion about the business concept and mission,
but then fail to communicate their specific business goals
associated with revenue and profitability. It takes effort, but it
is essential to focus on communicating goals in order to make them
meaningful and create a shared sense of purpose.
3. Have strategies to meet those goals.
While it is good to write down your goals and share them with
your team, you will still need a strategy to meet them. Smart
business owners will brainstorm with as many knowledgeable people
as possible in order to find creative ways to meet their goals.
They will motivate employees by outlining the goals and strategies
with collective buy-in. They will do this on a monthly or quarterly
basis to ensure it's possible to hold individuals accountable
for executing on the strategies to achieve the goals.
4. Recognize when goals change.
Sometimes your business goals will change, and you must be
prepared to respond. At one company I am familiar with, senior
management holds mid-quarter review sessions to realign goals based
on the latest feedback from clients, business partners and
employees. The quarterly goals are adjusted to reflect reality and
keep employees motivated and chasing the prize. Whether it's
because of the economy, a client's preferences or other
circumstances, don't let change be your downfall. If you must
change your goals, start now and you'll be back on the right
track. Stop procrastinating and start managing like a
winner-you'll be surprised at the results.
Moving from passion to profit is one of the hardest transitions
most entrepreneurs must make. It sometimes happens gradually as a
matter of necessity. It sometimes happens quickly as a result of
planning or luck. And, of course, it sometimes never happens. You
can accelerate your progress on the path to profitability by
following some of the rules outlined above.
Asheesh Advani is president of CircleLending, a
loan administration company that facilitates personal loans,
small-business loans, and mortgages. He and his company have
written the Small Business Financing Guidefor startups and
have helped small businesses in more than 30 states launch and
finance their growth.
The opinions expressed in this column are those
of the author, not of Entrepreneur.com. All answers are intended to
be general in nature, without regard to specific geographical areas
or circumstances, and should only be relied upon after consulting
an appropriate expert, such as an attorney or accountant.