Strategic Planning Process

Reaching the $1 Million Mark

By Erica Olsen ⋅ January 17, 2007 ⋅  Email this post ⋅  Print this post ⋅ Post a comment

At the end of the day, what is every business trying to
do? Grow. More customers, more sales, positive cash flow, larger deal sizes,
higher volume, more billable hours, justification for higher prices, etc. Ask
any hard-working entrepreneur what she is working on and you’re bound to hear a
comment related to growth. Why? Because if you’re not growing, you’re
shrinking. It’s why we are all in business – to build or create something
bigger than ourselves. And specifically, how do you grow your business to more
than $1 million in revenue?

The standard growth strategies are numerous (and
confusing) such as partnerships, market expansion, acquisition, product
extension, and franchising. While these strategies are important and useful, I
believe growth is ultimately determined by providing value to your customers,
the people you hire, the processes they develop, and culture you choose to
build. So instead of thinking about the detailed strategies themselves, let’s
look at a few exciting and practical ways to help you move closer to the $1
million mark.

Drive the organization with big
vision. Growth requires thinking big,
then executing like crazy. Success is 10 percent inspiration and 90 percent
persistence. But that 10 percent is critical, otherwise the 90 percent is lost,
aimless, and unproductive. According to Alvin Toffler, “You’ve got to think
about the big things while you’re doing the small things, so that all the small
things go in the right direction.” Growth comes from pursuing a worthwhile plan
with measurable rigor.

Account for big goals. Every organization sets goals, but sometimes they aren’t
big, and sometimes they are not written down! A big vision is achieved through
accomplishing big objectives and goals. That’s all execution really is – your
organization’s ability to achieve goals. First, pick 3 to 5 strategic goals
that you will focus on in 2007. Make sure all of these goals are focused on
growing your business to $1 million. Second, develop action plans for each
goal. Identify a responsible persona and a due date for each action item.
Review regularly and hold people accountable. Create a culture that people that
people feel responsible for “not missing a due date here.” That’s all there is
to it – it doesn’t have to be complicated, confusing or time consuming.

Celebrate wins along the way. Publicly share big accomplishments, milestone, project
completion, revenue goals. This sharing drives growth in two ways: 1) It
motivates the people driving those accomplishments to press on. 2) Success and
profit sharing breeds confidence, fueling enthusiasm for further growth.
Everyone wants to be appreciated and we often dwell on what we failed to
achieve, instead of celebrating the small wins. Do something special for yourself
and your team. After all, it’s the journey, not just the destination that
matters. Enviable growth business happens when you create something with ‘a
feeling that we’re in this together.’

Seek out new ideas. Invite left and right-brained people into your
organization to create a complete “brain trust” of skills and competencies. You
need both perspectives to invent creative solutions, challenge the status quo,
find hidden connections, new models, analyze data for discoveries, and explore
parallel industries for new methods. Henry Ford could not have grown faster
than everyone else had he not borrowed the division of labor manufacturing line
concept from a meat packing plant. Walgreens could not have grown as fast had
they not changed their approach to increased convenience instead of big stores,
big ticket items. Southwest could not have grown had they not reinvented
airline service and the hub-and-spoke approach. Challenge conventional wisdom
to solve your customers’ issues and pains with non-traditional approaches.

Ignore distractions. In tandem with new ideas, we must focus! This is the
never-ending struggle for entrepreneurs – too many ideas, too little resources.
In an increasingly competitive environment, growth comes from being great at
one thing at a time. Succeed at one thing that you know customers need. That
takes focus – focus on the customer and focus on what you choose to do better
than anybody. Use your vision as a filter to keep out distractions. If the
activity is not line with your big goals, even if it is a good idea, table it
and move on.

Empower through ownership. Inside almost every motivated employee is a frustrated
entrepreneur. As we know, entrepreneurs like to build and own their work. They
are achievement-oriented and take pride in results. Feed these engines with
premium fuel by assigning ownership. Recognition is the number one motivator.
You can unleash powerful output by clearly defining roles and responsibilities.
Give ownership of action plans. And help everyone in your organization
understand their purpose and impact on the big picture.

Neutralize negativity. There is no such thing as “try,” there is only “do.”
That’s the attitude of a sustainable growth company. The question is never,
“Are we going to make it?” The question is “What do you need to make it” and
the answer is “here’s how we can”. But be realistic. Most growth companies
don’t grow quickly without sustaining some damage. Consider how to avoid road
blocks and road bumps along the way.

Know your market cold. As a wise person (I can’t remember
whom) once said – sell something that people want to buy, not something you have to convince them to buy. In other words, know (don’t guess or assume)
the needs and wants of your customers. Offer them something that solves their
problems, makes their life better, something they can’t live without. Talk to
them, go to their business or home, and learn as much as you can about how they
use your product or service. And use that information to make your offering the
best it can be. Don’t forget, it is your customers that will get you to that $1
million mark!

Passion overall. If you’re motivated and excited about what you are doing,
people will follow and your organization will grow. This may be the most
important element because it is the true spirit behind growth.

To everyone out there who is striving to hit $1 million
(me included), may you hit that goal and them some!