A quick question for you today; but nonetheless vital if you want to create a business that works for YOU:
What are your TERMS for running your business?
Now that may seem a trivial question without context.
TERMS is an acronym we use, and means the following:
T is for how much Time are you going to invest in running your business?
As you know, Jacki and I don’t work Fridays and our days wrap around our kid’s school times. This was a conscious decision when we created our business, and every time we look to the future or re-engineer what we do, we always start with our commitment of Time. For us, that is the most precious of resources, and we will not compromise on it.
E is Effort or Energy. We want the business to empower us, energise us, and we know what zaps our energy or takes too much effort.
Too many business owners do things that lower their energy and, over time, start to resent their business (as do others around them).
It’s not easy to remove elements like this, especially for small businesses, but Covid has educated us that there are lots of people out there who love to do the stuff we hate. Our job is to find them, and then we can focus on doing the things we love, which empowers us.
R is for Resources. What resources are you going to put into your business outside time and Money? What personal and business resource are you prepared to commit to running your business or 2021 plan? These can be people or buildings, or other assets you may have outside Time and Money.
M is for Money. When we work with clients, we ask them to make sure that their breakeven figure includes their drawings, or it will not survive.
Fundamentally, every small business gets used to the fact that the business owners must feed themselves first, or eventually, they will starve.
If your business is not producing enough to pay the staff (if you have them) and yourself, then there is a significant problem that needs addressing. This may also be in the form of overdrawn directors’ loan accounts. It is the same outcome: a slow death if not managed.
The final part of the TERMS is S – Sanity.
How much hassle are you prepared to take to make this work? How much of your heart and soul will you give for this? What are you prepared to do to make it work?
One of the first things we do with our clients is understanding how much fight in the game they have. As with any outcome, there are always consequences, sacrifices, things that have to be done to get any return. The bigger the result, the more TERMS has to be put into it.
But let’s put it this way…if you knew that you could achieve your ideal outcome with a 70% percent chance of success, stop the overwhelm, and when bad days happen push through it, what would you do to achieve it?
Can I suggest you understand and do it on your TERMS, as this will make for a happy New Year.
Investor | Business Mentor at Advocate | Author of I don’t work Fridays