07 April 2017
Setting up your own start-up business is a big deal. It's a life-changing experience that takes plenty of dedication, courage and gritty determination to make your business idea work. But have you stopped to really pin down the goals of the business?
Having put so much hard graft in, you want to be sure that your venture is a success, right? But if you don’t understand the forces that drove you to go into business, how are you going to make sure you achieve your goals?
In a nutshell, if you can understand what drove you to start a company in the first place, it will REALLY help you to focus on the right strategy for the business.
So, how do you crystallise your core goals?
Many sole traders, start-up owners and aspirational entrepreneurs find themselves at the wheel of a business through circumstance.
But there’s one really important question that many business owners fail to ask themselves right from the very start:
‘Why am I in business?’
What are your underlying reasons for wanting to run this enterprise? And have you actually formalised these goals in any way?
Now this may seem like a dumb question to many people. A business is for making money, isn’t it? It’s an organised and systematic way to make profit from a product or service.
Yes. And no.
The process of making money is just that; a process. It’s not the fundamental end goal, though. Money, as we all know, is a means to an end – it’s the capital that allows us to do other things. The ‘for’ lies in the goals, values and vision of you, the business owner.
For example, Virgin is a massively successful global brand, but it’s core objective isn’t just to make profit. Wound up in the culture, brand and vision of Virgin is an end goal of providing the funding that allows Sir Richard Branson to live a life that meets his expectations.
So, if you take Virgin as your example, the business exists:
Now, your business may not end up on the scale of Virgin (but then again it may… don’t set yourself any boundaries). But the fundamental questions you need to ask yourself are the same.
And the answers you get will help you to understand exactly WHY you’re running the business in the first place:
So, you’ve sat down. You’ve had a think. And you’ve answered the important questions about what you feel your business is FOR.
It can be quite an illuminating process, revealing truths about yourself and the company that you may never have realised.
But whatever kind of business owner you find you are, you’ve done something critical for the future success of your company – you’ve crystallised WHY you’re in business.
And this process of crystallising your goals and drivers down into a workable business models is key to how we provide business advice at FD Works.
Next time, we’ll be asking another much overlooked question, ‘Is my business roadworthy?’ and showing you the main ways to kick the tyres on your business model to make sure it’s ready for the next stage of the start-up journey.
We’ve hopefully made you step back and start thinking about the core objectives behind your business – and with any luck, you now have a few answers too!
But why stop there, eh?
Here at FD Works our team of accountants and business advisors take a different approach to finance. We work with businesses across Bristol, Bath and the South West, offering hands-on finance support and FD-level strategic advice.
We'd love to help you pin down what your business is forGet in touch