Better Human Business Podcast

The Importance of Stretch Goals in Business Operations

No doubt, as entrepreneurs, we all have those sky-high aspirations, like retiring early or hitting monumental revenue targets. However, let’s zoom in on the more immediate, achievable goals—like increasing monthly revenue, acquiring new customers, or generating leads. These are the benchmarks that keep our business operations on track and signal when we are truly scaling our business.

Setting a goal that’s too easy might feel good when you hit it almost automatically, but it’s the slightly out-of-reach targets that really push us to excel. For instance, if acquiring 50 new leads in a month feels comfortable, why not push it to 75? That’s where the magic happens—you stretch, you grow, and you learn.

Weekly Reviews: Keeping on Track with Business Operations

Once you’ve set a “stretch goal,” the real work begins. It’s essential to break down your monthly objectives into weekly targets to monitor your progress effectively. This not only keeps you aligned with your ultimate goal but also introduces a rhythm of accountability and adjustment into your business operations.

Say your goal is 75 new leads a month; that breaks down to about 19 leads per week. If one week you only achieve 12, it’s a clear signal: something needs to change. This is where you start to experience what I like to call the ‘speed wobble’—that uncomfortable feeling that you’re not sure what to do next. Embrace it! That discomfort is where growth happens.

Adjusting Strategies: The Playbook for Scaling Business

Every week, take the time to assess if you’re on track with your goals. If not, it’s time to adjust your strategies. Ask yourself: What inputs are needed to achieve the desired outputs? What new actions should be taken to make up for the shortfall?

This continual process of evaluation and adjustment is crucial for scaling your business. It ensures that you’re not just running in place but actively advancing towards your goals.

Documenting Success: The Ultimate Playbook

After navigating through these challenges and finding strategies that work, document them! Create a playbook that outlines what you did to overcome obstacles and meet your targets. This resource becomes invaluable as it transforms your personal experiences into tangible, actionable knowledge that can be revisited and applied as needed.

Listen to the episode on Apple Podcasts, Spotify, Overcast, Podcast Addict, Pocket Casts, Castbox, Google Podcasts, Amazon Music, or on your favorite podcast platform.

Time-Stamped Show Notes

• [00:00:30] Introduction to Stretch Goals and Their Importance
• [00:01:30] Breaking Down Monthly Goals into Weekly Targets
• [00:04:00] Adjusting Strategies to Meet Weekly Targets
• [00:06:30] The Importance of Documenting Strategies and Outcomes

Understanding Systems vs. Processes

Let’s start with the basics—what exactly are systems and processes, and how do they differ? Using McDonald’s business operations as an example, which is beautifully depicted in the movie The Founder, we see how Ray Kroc revolutionized the fast-food industry with the “Speedy Service System.”

Processes involve specific tasks like food preparation, taking orders, or cleaning—each a series of steps aimed at achieving consistency and quality. These are your checklists, the routine parts of your daily business operations that ensure everything from a burger to a business report is standardized.

Systems, on the other hand, are more comprehensive. They integrate these processes into a cohesive model, ensuring that all individual tasks interlink seamlessly to enhance overall efficiency. In the case of McDonald’s, this system ensured that food preparation, order taking, and cleanliness worked together to deliver fast, consistent service across all locations.

Deciding Between a System and a Process

Identifying whether you need a system or a process depends on the complexity and scale of your business operations. Here’s how you can decide which one fits your current business needs:

1. Processes Are Your Starting Point: If you’re noticing gaps in the consistency of how tasks are performed, it’s time to develop a process. Think about creating checklists for tasks that require uniformity and precision, much like pilots use them to ensure safety in every flight.
2. Systems Are for Scaling: When your business grows to the point where you are juggling multiple processes, and coordination becomes challenging, you need a system. Systems automate and integrate these processes, making your operations less dependent on manual oversight and more streamlined.

Implementing Effective Systems and Processes

1. Document Everything: As you navigate through creating new strategies or methods, document each step. This not only helps in standardizing the process but also aids in delegating tasks later.
2. Delegate Wisely: Once you have established a process, delegate it. This frees up your time and mental space to focus on higher-level strategic thinking and further innovation.
3. Automate and Integrate: Utilize tools like HubSpot to automate and integrate your processes into a cohesive system. This helps in managing complex tasks more efficiently and ensures nothing slips through the cracks.
4. Review and Refine: Systems and processes are not set in stone. As your business evolves, continually review and refine these to ensure they remain aligned with your business goals and operational needs.

Why Focus on Systems and Processes?

Investing time in developing robust systems and processes might seem mundane compared to the dynamic aspects of running a business. However, they are critical for scaling effectively, saving time, and reducing the cognitive load on you and your team. They transform your business operations from being person-dependent to process-dependent, facilitating growth and ensuring sustainability.

Listen to the episode on Apple Podcasts, Spotify, Overcast, Podcast Addict, Pocket Casts, Castbox, Google Podcasts, Amazon Music, or on your favorite podcast platform.

Time-Stamped Show Notes

• [00:00:30] Introduction to Systems vs. Processes
• [00:01:30] The McDonald’s Example
• [00:04:00] Deciding When You Need a System or Process
• [00:06:30] Steps to Implementing Systems and Processes
• [00:09:30] Conclusion and Final Thoughts

Understanding Scarcity Mindset

A scarcity mindset often manifests as a pervasive fear of never having enough, whether it’s resources, opportunities, or success. It can trigger anxiety and lead to a perpetual state of worry that things are going to fall apart at any moment—a feeling I know all too well.

My Personal Battle with Scarcity

Throughout my journey as an entrepreneur, the fear of scarcity has been a constant companion. It has sometimes escalated to extremes where I found myself worrying about every downturn or potential business failure, imagining the worst possible scenarios.

Strategies to Counteract Scarcity Mindset

After numerous conversations and personal reflections, I’ve developed some tactics to help manage these intrusive thoughts. Here’s what has worked for me:

1. Recognize the Signs

The first step is acknowledging that you’re spiraling into scarcity thinking. This recognition can sometimes be the hardest part because our fears can masquerade as rational concerns.

2. Fear Setting

Inspired by Tim Ferriss, fear setting involves writing down the worst-case scenarios in detail. This exercise has been instrumental for me, especially when fears begin to overshadow logic. By confronting these fears on paper, you often realize they aren’t as catastrophic as they feel.

3. Focusing on Data and Facts

When I notice negative trends in business—like a drop in leads or revenue—it’s easy to panic. However, I’ve learned to step back and analyze the data thoroughly before reacting. This approach prevents knee-jerk reactions and helps maintain a logical perspective.

The Impact of an Executive Assistant

In combating my own scarcity mindset, hiring an executive assistant played a pivotal role. This decision allowed me to delegate daily operations and focus on strategic growth, significantly reducing my mental load and anxiety.

Moving Forward with Clarity

Implementing these strategies doesn’t eradicate the scarcity mindset overnight, but it provides a clearer path forward. With each step, I’m learning to balance caution with optimism, ensuring that my decisions are driven by data and genuine business needs rather than fear.

Listen to the episode on Apple Podcasts, Spotify, Overcast, Podcast Addict, Pocket Casts, Castbox, Google Podcasts, Amazon Music, or on your favorite podcast platform.

Time-Stamped Show Notes

• [00:00:30] Introduction to the episode and discussion on the scarcity mindset.
• [00:01:30] Personal experiences with scarcity mindset and its impact on business decisions.
• [00:02:30] Detailed explanation of fear setting and how it helps manage anxiety.
• [00:03:30] The importance of data-driven decisions in business to avoid panic-driven reactions.
• [00:04:30] How hiring an executive assistant helped refocus on business growth and reduce scarcity fears.
• [00:05:30] Closing thoughts on maintaining balance and moving forward despite challenges.

Understanding the Role

Initially, the idea of hiring an executive assistant seemed more like a luxury than a necessity. Compared to investing in marketing or other direct growth strategies, it felt extravagantly personal. But after extensive discussions with mentors and peers, all of whom swore by the importance of this role, I took the leap.

The Strategic Value of an Executive Assistant

An executive assistant brings much more to the table than typical administrative tasks. They operate on a strategic level, managing significant business operations and projects, handling confidential information, and sometimes making critical decisions. This role can dramatically free up your time, allowing you to focus on what truly matters—growing your business.

My Experience

For a long time, I resisted hiring an executive assistant. I felt I could handle my schedule and tasks without needing someone to “manage” me. However, the increasing complexity and scale of my business responsibilities made me reconsider. The clarity and focus I’ve gained since making this hire have proven invaluable. My executive assistant manages day-to-day operations, which has enhanced my productivity and allowed me to focus on high-impact activities.

Learning and Moving Forward

The transition wasn’t immediate. I spent considerable time developing systems and processes to ensure seamless integration of my new assistant into my daily operations. This upfront investment in organization has paid dividends in efficiency and effectiveness.

Listen to the episode on Apple Podcasts, Spotify, Overcast, Podcast Addict, Pocket Casts, Castbox, Google Podcasts, Amazon Music, or on your favorite podcast platform.

Time-Stamped Show Notes

• [00:00:30] Introduction to hiring an executive assistant.
• [00:01:30] Differences between administrative and executive assistants.
• [00:02:30] My journey from resistance to hiring an executive assistant.
• [00:04:00] Immediate impacts of hiring an executive assistant.
• [00:05:00] The necessity of systematization for effective assistant integration.
• [00:06:30] Criteria for selecting the right executive assistant.
• [00:08:00] Conclusion and thoughts on the transformative potential of the role.

The Mathematics of Scaling

Scaling a business isn’t just about increasing numbers; it’s about strategically planning and executing growth by understanding the inputs needed to achieve desired outputs. Many entrepreneurs fall into the trap of “dumb math”—simple calculations like selling a million units at one dollar to make a million dollars. However, real business growth involves deeper, more complex considerations that require a more nuanced approach to scale effectively.

Reverse Engineering Your Growth

To scale effectively, you need to reverse engineer your process. Let’s say your goal is to add $10,000 to your business next month. If your average customer value is $1,000, simple math suggests you need 10 new customers. But it’s not just about acquiring new customers; it’s about understanding the entire funnel:

• Sales Conversations: If you convert 50% of sales conversations, you need 20 conversations to get 10 customers.
• Leads: If 20% of your leads turn into sales conversations, you need 100 leads.

This breakdown helps you pinpoint exactly what needs to be done at each stage of the funnel.

Addressing Resource Allocation

Understanding where your leads come from and how you can increase these numbers through various strategies, whether it’s digital marketing, partnerships, or other lead generation activities, is crucial. It’s about aligning your resources—both time and money—to meet these needs and effectively scale.

Advanced Scaling: Managing Through People

Scaling beyond a certain point invariably requires more than just numerical growth—it requires building a team. Here’s where leadership and management play critical roles. You need to transition from working “in” your business to working “on” your business. This involves:

• Delegating tasks to capable team members.
• Hiring the right people to take over certain roles, especially in sales, marketing, and customer service.
• Training and managing a team to ensure they’re aligned with your business goals.

The Leadership Challenge in Scaling

A crucial aspect of scaling involves making tough decisions that align with your business’s long-term strategies, not just immediate gains. Effective leaders need to listen to their team and gather data but ultimately make decisions that drive the business forward, even if they’re tough. This decision-making process is vital to successful scaling, as it directly impacts the business’s ability to scale efficiently and sustainably.

Listen to the episode on Apple Podcasts, Spotify, Overcast, Podcast Addict, Pocket Casts, Castbox, Google Podcasts, Amazon Music, or on your favorite podcast platform.

Time-Stamped Show Notes

• [00:00:30] Introduction to scaling your business and the mathematics behind it.
• [00:01:30] Detailed breakdown of reverse engineering your business growth.
• [00:02:30] Discussion on resource allocation and optimizing lead generation.
• [00:04:00] Transitioning from doing to leading: Managing growth through people.
• [00:06:00] Advanced scaling strategies and the importance of leadership in scaling.
• [00:07:00] Closing thoughts and preview of upcoming discussions on deep-dive scaling techniques.