Is your business consistent, stable and predictable? If not, you have an idea that works once in a while. But you don’t have a business.
Every business needs:
Is your business consistent? What does that mean in a business sense?
If you can predict what will happen in your business, you are stable. Will you have a good month this month? Next month? The month after?
Is your business stable? Your business can be consistent, but not stable.
Starbucks is consistent, but its stability is wavering. Stores have closed, its stock has gone down.
What would make your business more stable? What will make it less stable?
Understanding what your market demands, and the fluctuations of your market, will help you become stable.
Does the economy support your business? The economy may be unpredictable, but we control the risks we take, and the strategies we pursue.
Is your business predictable?
There is no possibility of you predicting with 100% accuracy what will happen in your business. Only God is 100% accurate.
Predictability means that if someone invests in your company, they are relatively sure of what will happen with your business. And their money.
In addition to “trusting your gut” that it, whatever it is, will happen, how do you make predictions in your business? What are the two or three benchmarks in your business that you would use to predict the future?
Base your predictions on the numbers:
- Number of pitches
- Number of sales
- Number of long-term contracts.
Find ways to make long-term deals so you can cast your predictions three to four years out.
Look at your business from the eyes of an investor. Then:
- Find ways to make your business more stable
- Find ways to make your business more predictable
- Find ways to make your business more consistent.
Then you will have a business.
Inspiration for this post came from JT Foxx.