I played a lot of touch football when I was around ten years old. Eight of us boys from the neighborhood would gather at our local park and choose teams. Then the two teams would line up across from each other, agree on the rules, and get ready to start the game. After a coin toss, one team would kick off to their opponent. The receiving team would have their fastest player catch the ball and run down the field as far as he could without being tackled. A tackle occurred when the defensive player touched the runner with two hands below the waist.
Then the offensive team huddled to decide their offensive play for the next down. The quarterback usually called the plays, even though he wasn’t always the smartest player on the team. He was usually the one who was the tallest, fastest, or had the best arm. Obviously, there wasn’t a playbook nor did the teams have time to practice their game plan. Before each down, the inexperienced quarterback gathered his team in a huddle and called plays based on what he thought would work and surprise the opponent. The players were also loosely told what position to play, who would run which way, who’s job it was to block, and where they were to go. Not a very good strategy for a winning outcome.
Are you better than a 10 year old?
Think about your company. Is your business strategy better than a neighborhood pickup football game? Do you huddle up before every decision? Do you tell your players what to do before every project? Do they know what to do based on written systems and strategies from your company playbook? A professional football team is a good model to copy for small business owners. Professional teams have a written strategies for every season and each game. They also have written plays designed to work in every situation they encounter. Do you?
Unless you want to run your company like a young inexperienced quarterback, you need a winning playbook to follow. Thinking like a professional sports team, what needs to be in your company’s business plan?
1. Overall company mission, vision and values
2. Coaching and staff assignments and responsibilities
3. List of players and their strengths & weaknesses
4. Training program
5. Equipment inventory management
6. Offensive plays and strategy
7. Defensive plays and strategy
8. Business development plays
9. Financial plays and strategy
Draft your business playbook!
A professional team must have all their bases covered to put a winning team on the field plus make as much money as possible. Where should you start to draft a winning game plan?
1. Determine your overall company mission, vision and values
Sit down with your key managers and take time to discuss why you are business and what’s the purpose for owning your company? This exercise will get you focused on the real reason you go to work every day. I often ask business owners why they are in business. They answer: ‘to make money doing whatever they do like plumbing or construction.’ You are not in business to do plumbing or construction. You are in business to maximize your resources of time, energy and money so you can get the biggest return in whatever manner you desire.
For example, a construction company is a great start to achieve what you want. It is very rewarding but demanding work. But, it is limited in net profit margin potential as it is very cyclical with thin margins. In my opinion, a construction company creates an excellent opportunity to seek opportunities to build wealth versus just building for others. When you build for customers, that allows you to make some money. When you build for yourself, that allows for passive income, freedom, and equity growth. What is your overall company mission, vision and values? Continue reading