(Picture: Cameron Herold, COO Alliance, and the Invest In Your Leaders course)
Strategy 4 Saturday Blog (<4 minute read)
Five Strategic Tips Every Business Owner Should Know
Strategic planning done properly is a catalyst to accelerate a business owner’s growth, regardless of your company’s size or industry. From two decades of strategic planning experience, here are five key takeaways:
1. Strategic Planning Accelerates Small to Mid-Size Businesses
A common misconception among small business owners is that strategic planning is only for large corporations. This is simply not true, as I have spent the majority of my career working in or managing start-up to $100M businesses. The truth is that every business, no matter its size, benefits from a clear strategic plan compared to not doing it all. Businesses are 42% more likely to achieve their goals if they are written down. This simple act of documenting your strategy can significantly enhance your ability to reach your objectives.
2. Write a 3-Year Vision
Strategic planning is akin to setting a course for a ship. Without a clear direction, you’re likely to drift aimlessly. According to Cameron Herald, author of Vivid Vision, he recommends writing a vision, 3 years in the future. This involves setting a clear picture of your future, including clients, market focus, employees, and geography. This allows you to go from an abstract vision of your future into actionable steps.
3. Use the Pareto Principle to Take Calculated Risks
Focus on the key strategic opportunities that yield the greatest potential impact. The Pareto Principle, or the 80/20 rule, suggests that 20% of your efforts will produce 80% of your results. This approach helps in prioritizing tasks that offer the most significant rewards, ensuring that resources are allocated efficiently and effectively.
4. Define Leading Indicators to Track Your Progress
Company retreats often become a ground for common strategic planning mistakes, such as focusing on choosing the wrong metrics to track success. A strategic plan should not only focus on lagging indicators, such as sales growth, but also on leading indicators that can help you adjust your strategies in real-time to reach your destination.
5. Incorporate Modern Tools
Tools like ChatGPT can revolutionize strategic planning by accelerating the creation of strategic documents like writing a clear vision. This tool helps articulate a detailed vision of your company’s future, guiding strategic decisions and ensuring alignment across your organization. Connect with us to learn more about our ChatGPT Vision prompt!
Strategic planning is not just a tool, but a necessity for any business aiming for longevity and success. As a business owner, you only need to spend 2% of your time on strategy, or the equivalent of 40 hours per year, to accelerate your success. (BTW – That is why we are called 40 Strategy.) Whether it’s leveraging modern technology to enhance planning or adhering to tried-and-true principles like the Pareto Principle, the goal remains the same: to ensure that every step you take is a step toward your intended destination. Use these five key steps to accelerate your success.
$4M Strategies™ Podcast:
Thursday I had the honor and pleasure of meeting Cameron Herold. Cameron Herold is the mastermind behind the exponential growth of hundreds of companies, the COO Alliance, and the Invest In Your Leaders course. He is the former COO of 1-800-GOT-JUNK? We recorded the Measure Success Podcast, releasing in December, and four $4M Strategies™ Strategies™ episodes. Listen in next Wednesday, June 19th to hear his insights into strategic planning.
Strategic Planning Schedule:
Monday, 6/17 – Jim Huling
Tuesday, 6/18 – Norman Wolfe
Wednesday, 6/19 – Cameron Herold
Thursday, 6/20 – Carl J Cox
Friday, 6/21 TBD
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(Picture: $4M Strategies™ logo)
Measure Success Podcast
David Kitchen | Strategic Leadership with David Kitchen
Are you striving to enhance your leadership skills or looking to inspire and manage your team more effectively?
In this week’s episode, David breaks down his renowned “Five Cs” of leadership: Character, Consistency, Commitment, Creativity, and Communication. Learn how these elements can transform your approach to leading teams and driving business outcomes, whether you’re a budding entrepreneur or a seasoned executive.
Cody Adent | Winning the Moment with Cody Adent: Key Insights for Entrepreneurs
Next week on the Measure Success Podcast we sit down with Cody Adent, a pioneering entrepreneur and insightful author. In this episode, Cody takes us through his remarkable journey from founding his first business at the age of 19 to his current role as the president and CFO of Vibrant Management.
Tune in to learn how to harness your potential, make impactful decisions, and live a life aligned with your aspirations.
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