Have a Business Framework
Whether you are in the idea stage of your new coaching business or have been in business for years, having a business framework is one of the most important things you need to succeed. Having a signature framework in your business is what differentiates you from everyone else. It will be your guide and your strategic process moving forward.
Goal setting is a huge part of owning a business. Both big and small. Starting with what you want to achieve, at a high level. “Make more money” is an obvious goal, it’s probably the one we can all agree on. But when you are setting your goal for the task at hand, I want you to be specific, very specific. Because clarity is key.
If the goal is to make money, set it with clarity with something along the lines of “Make more money by selling a new item to an old customer.”
The best goals are specific, measurable, and actionable. When you can clearly state what you are trying to do, then it can be achieved that much easier.
What is your KPI?
KPI is your: Key Performance Indicator
As mentioned above when you set a goal it needs to be measurable. Once you have set your goal, and you are clear on what it is, make a plan for how you will measure it.
THIS IS IMPORTANT
You want to set your plan for measurement now because it is easier to identify what you are looking for in order to reach your goal. If you set it after you have started, it will be easy to get distracted and change your mind.
Regardless of what your goal is, there will be many ways to measure your success. Take digital marketing, for example, you can measure site visits, clicks, sales, bounce rate…the list goes on and on. This can be paralyzing and overwhelming, to say the least – which is why I ask you to choose one. One that will guide you to where you want to go. One that will let you know if you are getting any closer to your goal. That one metric is your KPI.
Just remember – every business and every project is different and will have a different metric and that not all metrics are digital. If you are looking to attract new customers, the metric could be the number of people that enter your store or new visitors to your site. The important thing is to pick one that aligns with your goal.
With your goal set and KPI decided, it is time to take note of where you are now, using the KPI you chose as your point of reference. If you chose email opens as your KPI – how many emails were opened last month? The purpose of this is simply because you will never know how far you have come if you do not know where you started.
So, be honest. Don’t be embarrassed or ashamed of low numbers if you have been in business for a while, do not round the numbers, and do not lie! As I mentioned above, the evidence of growth will only be there when you have evidence of where you began.
Don’t overthink or overcomplicate this. You have already identified your KPI, so just take a peek at it currently and write it down in your business journal or your spreadsheet. Because you will be going back to it later.
If you have zero experience to pull from, leap – don’t plan. If you have years of experience to pull from, leap – don’t plan.
The reason for this is because you are first getting started with this method and there will be a lot of learning as you go. Right now, start with the trial and error method – try something to see what works. (The same way I make dinner, I throw spaghetti at the wall to see what sticks…)
Now, I am not saying just dive in without thinking – or to run your business on a matter of chance. You will need to make a calculated first step, you should know the actions needed to reach your goal. What I am saying is do not get stuck in the “planning loop”. I’ve been there, it is extremely hard to get out of.
Also, don’t spend a lot of money when you are using this trial and error method. See what works and what doesn’t, your KPI will clearly show you where investments will be required. Because if you don’t reach your goal the first time, you will know what to change the next time around.
Now, the hard part. The reason I say this is the hard part is that you are going to need to review your metrics and measure the results. It is imperative you measure them correctly, by looking at the KPI you laid out in the beginning and not be distracted by all the other information available. Even if you are reviewing and feel you didn’t choose the right metric to measure in the beginning – only look at its results. No other. You can change the metric the next time around.
All that other information can be misleading and troublesome. Even if the numbers are higher and make you feel better than the numbers you are measuring – don’t refer to them! The point of focusing on the one KPI is to learn. By seeing what does and doesn’t work so you can improve and grow your business.
At this point, you have probably learned a lot about a lot. Take your KPI numbers from steps 3 and 5 and compare them to each other. How’d you do? Did you reach your goal? If not, what will you do differently next time? If so, what can you do to stretch your goal for next time? Take note of what worked and what didn’t.