Being an entrepreneur can be exciting, rewarding but also scary. The path to success is a long road, and the bumps along the way can be discouraging. Sometimes, the entrepreneur isn’t sure which route to take or even drives blindly down streets, not knowing where it will ultimately take them. Therefore, as an entrepreneur, you need a simplified method to navigate this complex and lifelong journey.
The first step towards success starts with “Awareness.” You must spend time reflecting on 1. Where you are now 2. Where do you want to go 3. What is your gap?
Where you are now
What does your business look like today? Do you have a pulse on your financial situation? Or, is your business books a mess and you are too busy to get them organized? If the latter is true, you must get your books organized before moving onto the next steps. Understand where you are now and your 7 key numbers (revenue growth, gross profit, operating profit, revenue per employee, cash days, core cash target, and business return) makes you aware of your current situation. With that, you will better understand where you need to go.
Where you want to go
Everyone has their definition of what success means to them. First, you must clearly define what you want out of life. Write down how you want to spend your time and what type of work you want to do. What does your financial situation need to look like for you to be successful? By knowing what your future life will look like, you can translate that financial situation into what your 7 key numbers needs to look like. With that, you can reasonably measure the gap between where you are now and where you need to be.
What’s your gap?
The gap is what we will need to close to achieve your success. Understanding your gap, is key to your success. To close your gap, you need an advisor to collaborate with to create an action plan.
Create a plan
You don’t want to design a plan randomly. It needs to be carefully thought out. Your most valuable resource is your time! I am willing to bet that your gap is also a pretty significant distance, and there isn’t such thing as a simplified plan to get there in one step. That’s where prioritizing comes in. Breaking down your gap into what can be done in the next 90 days makes your long road a shorter path. Breaking down big hairy audacious goals into bite-size actionable 90-day plans makes the complicated look simple. Our minds also respond well to achieving quick wins. Each time you cross something off your list (big or small), you release a small amount of serotonin, which increases your drive and motivation! Compound those quick wins over a long period, and you will be on top of your game, more motivated than ever. The small successes add up over time. By coming up with short-term tasks, you can prioritize which is most essential to complete now regarding the bigger picture of your long-term goals.
At Argento CPA, we mastermind with our clients on what tasks should be completed now vs. later. Our ability to collaborate with our clients to make their dreams become a reality. We tailor our tasks around your 7 key numbers. Our insights give you the confidence to know what aspect of your business will likely give you the most significant profit and cash potential.
With that, we can work together on actionable bite-size plans to complete in the next 90 days that are most important and beneficial to your overall stretch goal.
Measure and monitor your results vs. the plan
Lastly, you need to measure your actual results vs. what you set out to do. Nothing is perfect. You may fall short, or you may surpass your goals. The most important thing to take away from experience is reflection. Why did you fall short? Or why did you reach your goal? Spending time to analyze the variance between your financial model’s budget and actual results is where the magic happens. Having someone reliable to measure the results and brainstorm with you on why a variance exists is just one of the reasons you need a consultant. Knowing where you were before and what you did now will give you perspective on how you need to adjust your approach. Taking action is critical but adjusting your process when things don’t pan out is vital.
At Argento CPA, we understand entrepreneurs need more from their accountant than just tax compliance and bookkeeping. So, we are here to team up with you to guide you along your path to success.
Contact Argento CPA to collaborate on your 5 steps to success!
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.