Business Owners: What Color Is Your Parachute?

You’ve probably heard of the book What Color Is Your Parachute? It’s the best selling job-hunting book in the world. How is this relevant to you, the business owner? Well, this book guides the job seeker through a process of getting to know himself or herself, in an attempt to figure out what kind of job, or career, is uniquely suited for him or her.

Your search, if you choose to accept it, is to figure out some key questions that are vital to the health, growth and success of your company, namely:

Whom do you serve?

Tip: Describe your core customer in detail.

Examples:

• The person who lives paycheck to paycheck (Wal-Mart)
• The person who wants to integrate technology into his/her life but does not know how (Best Buy)

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Why does your company exist?

Tip: Something more than money!

Examples:

• We are in the business of preserving and improving human life. (Merck)
• Reconstruction of Japan. Place of work where engineers can feel the joy of technological innovation. Apply advanced technology to the life of the general public. (Sony)

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What about you is unique?

Tip: Be yourself. Express yourself. You are unique.

Example:

• I like classical music, am an avid runner and am passionate about saving our endangered species.

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What are your core principles?

Tip: What makes you angry? Sad? Excited?

Examples:

• I think all people should be treated equally and respectfully.
• I believe that the most admirable quality in a person is hard work and effort.
• I believe anything is possible.

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What are the core principles of your organization?

Tip: Consider talking to your employees about this. Your organization likely has some already.

Examples:

• Business owners do great things for society. They deserve a nice payday. (Acquisition Advisors)
• We celebrate personal achievement. (NIKE)

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What is the future for your business?

Tip: Talk to your employees. Write down future goals. Then pick a big one that excites you and your troops.

Examples:

• $1 billion in revenue by 1981 (Wal-Mart, whose 2007 revenue is approaching $400 billion)
• Have 32 locations by 1975 (Subway, which today has 25,000 units)
• $1 billion in revenue by 2016 (Benefitfocus.com, Inc., whose revenue today is an estimated $100 million)

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How will your organization achieve this goal?

Tip: Just give them a good reason, preferably one that will guide their focus.

Examples:

• “Our blue-shirts will be the smartest friends you’ve ever had.” (Best Buy)
• “The United States spends about $1.2 trillion on health care, and it’s growing, and 30% of those expenses are administrative paperwork costs that BenefitFocus’ software is designed to eliminate.” (BenefitFocus.com, Inc.)

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I don’t recommend that you do the above in one sitting, nor in isolation. Work on them with your employees, partners, spouse and maybe even a close friend. Once you feel good about your answer to the above, you’re re ready to establish your company’s mission, principles, BHAGs and goals.

Our Mission Statement:

Suggestion: Be clear on whom you serve, why you serve them and where you are going.

Example: Our mission is to provide the best technology, software and services to the health care insurance industry worldwide and to transfer and exchange the largest amount of electronic health data in the industry. Our goal is to operate our business on behalf of clients and associates while respecting every individual and providing anticipatory service.

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Our Principles:

Suggestion: What are you passionate about and what matters to your customers?

Example: Here are the principles of Acquisition Advisors, a mergers and acquisitions consulting firm:

Hard work

The bedrock of our success is our work ethic.

Commitment

We are 100% committed to serving and adding substantial value to our clients.

Honesty

We are open, honest and friendly. We hire and retain only open and honest people.

Respect

We treat all people with dignity and respect, at all times and without exception.

Passion

We understand the significant and meaningful contribution of private business owners to our society and we proudly and passionately serve them, our clients.

Courage

We are courageous in our pursuit of excellence. Our courage enables us to do what is best, right and truthful at all times Ð even when it is difficult or inconvenient.

Winning

We work to win. We hire winners, work for winners, reward winners and celebrate winning performance.

Growth

We are committed to the growth and profitability of our firm, and are committed to being the leading Middle Market M&A Firm in the U.S.

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Our BHAGs:

Suggestion: Make it audacious, but you have to mean it and do whatever it takes to reach it.

Example: 200 units by 2010

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Our Goals:

Suggestion: Stepping stones to reaching your BHAG.

Example:

• Roll out our “best in class” Web-based customer resource center by July 1.
• Get a sales team in place that is capable of hitting our unit volume targets.
• Expand product line capacity to support unit volume goals
• Put in place a company-wide bonus plan based on company-wide performance

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Congratulations. Now make it happen.