The Importance of Setting Ambitious Goals for Business Growth

Pushing yourself and your team beyond comfort is essential for growth and evolution.

As a strategic coach with over a decade of experience working with numerous companies, leaders, and CEOs on business growth challenges, I've seen firsthand the transformative power of setting ambitious goals. While avoiding unrealistic expectations is crucial, aiming slightly beyond comfort zones fosters personal and professional growth and evolution. Here are essential steps to effectively set and achieve ambitious goals:

1. Get clear on your purpose.

Understanding the why behind your goals is fundamental. Your purpose should be a driving force that keeps you and your team motivated and focused. The energy and commitment toward achieving ambitious goals naturally increase when everyone is aligned with a common mission. This clarity fuels motivation and ensures your goals are impactful and meaningful.

2. Identify specific areas of change.

Before setting your goals, take a step back and assess the areas within your organization that require change or improvement. These could include increasing market share, enhancing customer satisfaction, or improving operational efficiency. Identifying these areas will help you focus your efforts and resources on what truly matters, laying the groundwork for practical goal setting.

3. Articulate 3-5 specific objectives.

Once you've identified the critical areas for change, translate them into specific objectives. These should be clear, concise, and actionable. For example, if you aim to improve customer satisfaction, an objective might be to "enhance customer service response times." Clear objectives provide a roadmap and direction, making tracking progress and maintaining focus easier.

4. Create 3 to 5 key results under each objective.

To ensure your objectives are not just theoretical, break them down into measurable key results. Each objective should have three to five key results that indicate progress. For example, to enhance customer service response times, key results could include "reduce average response time to customer inquiries by 50 percent" or "achieve a 90 percent customer satisfaction rate with support interactions." These key results offer concrete milestones that demonstrate tangible progress.

5. Set your targets to be 'doable but not easy.'

Ambitious goals should be challenging yet achievable. Setting targets that are too easy can lead to complacency, while impossible goals can demoralize your team. Striking the right balance is crucial. Aim for targets that push your team to stretch their abilities and think creatively while still within the realm of possibility. This balance ensures sustained motivation and effort.

6. Aim for 80 to 90 percent completion.

When setting your goals, aim for a completion rate of 80 to 90 percent. This approach builds in a slight stretch, encouraging continuous improvement and innovation. Significant growth and learning occur in the push to achieve that final 10 to 20 percent. This mindset also helps build resilience and adaptability, which are essential for long-term success.

7. Create an implementation plan.

A well-structured implementation plan is crucial to turning goals into reality. Map out a week-by-week schedule detailing the specific tasks and commitments required to achieve each key result. This plan should include deadlines, responsible parties, and checkpoints to review progress. A detailed implementation plan ensures accountability and keeps the team on track, facilitating steady progress toward your goals.

By following these steps, you can set ambitious goals that drive significant growth and development. Remember, real progress happens in the discomfort and stretching beyond your comfort zone. You and your team can achieve remarkable outcomes with clarity, focus, and a well-structured plan.

7 Lessons on Goal Setting and Discipline From Competitive Cycling and Triathlons

Transforming passion into progress through structured training and dedication.

As a seasoned business strategist and dedicated athlete, I have worked with numerous companies, leaders, and CEOs to tackle growth challenges and achieve their goals. My journey in competitive cycling and triathlons has honed my athletic abilities and deepened my understanding of goal setting, discipline, and the importance of a well-structured plan. Here are the key lessons I've learned from sports that I apply to my professional and personal life.

1. Push yourself but not too hard.

Sustainability is crucial in both sports and business. When training for a race, it's tempting to push your limits every day. However, this approach can quickly lead to burnout and injury. In the same way, overextending yourself in business can lead to decreased productivity and poor decision-making.

By pacing myself and focusing on long-term improvement, I've learned to balance pushing my boundaries with maintaining a sustainable pace. This lesson emphasizes the importance of setting realistic, incremental goals that allow continuous progress without sacrificing well-being.

2. Never skip more than one day a week.

Life happens, and sometimes it's impossible to stick to a training schedule perfectly. Family, work, and unexpected events can disrupt even the best-laid plans. The key is to allow flexibility in your progress. I adopted a rule of always taking up to one day off from training per week, which helped me stay on track without feeling overwhelmed by occasional disruptions. In the professional world, this translates to maintaining consistency in your efforts while accommodating life's inevitable interruptions. It's about resilience and the ability to bounce back quickly from setbacks.

3. Don't do two workouts in one day.

Overtraining is a common pitfall for many athletes and professionals alike. It can lead to fatigue, decreased performance, and injury. In my training, I've learned that doubling up on workouts to make up for missed sessions is counterproductive. The same principle applies to work: cramming too much into one day can reduce the quality of your output. Prioritizing quality over quantity is important, ensuring that each task or workout is given full attention and effort. This approach fosters better results and helps prevent burnout.

4. When resting, rest.

Rest and recovery are crucial components of any training plan. Initially, I struggled with taking rest days seriously, but over time, I realized that intentional rest is just as important as active training. In business, taking time to recharge can enhance creativity and problem-solving abilities. Ensuring that rest periods are truly restful, without the distractions of work, allows for mental and physical rejuvenation. This practice improves productivity and keeps both body and mind in peak condition for the challenges ahead.

5. Use a good coach.

One of the most valuable lessons from my athletic journey is the power of having a good coach. A coach provides guidance, accountability, and a structured plan tailored to your goals. This principle directly translates to business. Whether it's a mentor, advisor, or professional coach, having someone to help navigate challenges and keep you on track is invaluable. A coach can offer objective insights, helping refine strategies and overcome obstacles more efficiently and confidently.

6. Embrace the power of a structured plan.

Success in both competitive sports and business is often the result of meticulous planning. Training for a triathlon or cycling event involves detailed schedules that balance workouts, rest, and nutrition. Similarly, in business, a well-structured plan that outlines clear objectives, milestones, and resources is essential for achieving goals. The discipline to follow and adjust this plan as needed transforms aspirations into reality. Structured planning ensures that efforts are aligned with desired outcomes, providing a roadmap that guides daily actions and long-term strategies.

7. Measure progress and celebrate milestones.

Tracking progress is critical in athletic training and business endeavors. In sports, monitoring performance metrics such as speed, endurance, and strength helps identify areas of improvement and celebrate milestones. In the business context, regular reviews of key performance indicators and other metrics allow for strategy adjustments and recognition of achievements. Celebrating these milestones, no matter how small, boosts morale and motivation, strengthening the commitment to continued progress.

By integrating these principles into my daily routine, I've been able to achieve a balance between my athletic pursuits and professional responsibilities. Setting goals, maintaining discipline, and having a structured plan have been the cornerstones of my success in both areas. Competitive cycling and triathlons have taught me that it's possible to excel in multiple facets of life with the right mindset and approach. The lessons learned from sports are not confined to the race track; they are universal principles that can drive success and fulfillment in every aspect of life.

5 Elements of Continuous Business Improvement and Growth

These are critical to improving your business and will help drive long-term growth.

With more than two decades of experience in lean and agile software development, I have seen how continuous improvement can revolutionize a business. As a founder who has successfully grown a company, I know the importance of iterating on processes to achieve strategic goals and drive sustainable growth. My insights come from hands-on experience and a deep commitment to fostering a culture of continuous improvement.

Continuous improvement is a vital strategy for businesses aiming to stay competitive and achieve sustainable growth. Focusing on these five core elements can drive your strategic evolution and ensure your business remains on an upward trajectory.

1. Collect good data.

Good data is the backbone of continuous improvement. You need accurate and comprehensive data about your business processes, decisions, outcomes, and events to make informed decisions. This means investing in data collection tools and technologies that provide real-time insights and facilitate easy data analysis. Regularly reviewing this data helps you identify patterns, understand what works, and pinpoint areas that need improvement.

For instance, a manufacturing company might track production line data to identify bottlenecks or inefficiencies. By analyzing this data, they can implement targeted improvements that enhance productivity and reduce waste.

2. Regular team reflections.

Setting aside dedicated time for team reflection is crucial for continuous improvement. Regular meetings where teams can discuss what's working and what's not create a culture of openness and continuous feedback. These sessions should focus on successes and failures, encouraging team members to share their experiences and insights.

A good practice is to hold weekly or bi-weekly reflection meetings. During these sessions, team members can highlight recent challenges, discuss solutions, and propose new ideas for improvement. This proactive approach ensures that minor issues are addressed before they become significant problems.

3. Developing critical skills.

Root cause analysis and critical thinking are essential skills for continuous improvement. Teams must go beyond surface-level issues and identify the underlying causes of problems. This involves training team members in methodologies like the 5 Whys, Fishbone Diagram, and Pareto Analysis, which help dissect problems and reveal their root causes.

Encouraging critical thinking within your organization means fostering an environment where questioning and problem-solving are valued. Training sessions, workshops, and resources on these skills can empower your teams to think critically and drive meaningful improvements.

4. Identify actionable improvements.

Once you've identified the areas for improvement, the next step is to develop specific actions and process changes. These actions should be clear, measurable, and achievable, with defined timelines and responsibilities. Involving the relevant stakeholders in this process is essential to ensure buy-in and alignment.

If a retail business identifies customer wait times as a problem, it might implement a new queue management system or streamline the checkout process. Businesses can effectively address issues and enhance their operations by setting clear goals and actionable steps.

5. Track commitments.

The final element of continuous improvement is tracking commitments and action items to ensure changes are implemented. This involves setting up a robust system for monitoring progress and holding team members accountable for their tasks. Regular follow-up meetings and status updates are crucial to keep the momentum going.

Project management tools and software can help track progress and ensure everyone is on the same page. By regularly reviewing action items and outcomes, businesses can ensure that improvements are sustained and that any obstacles are promptly addressed.

Incorporating these five core elements into your continuous improvement strategy can drive significant growth and strategic evolution within your organization. Collecting good data, fostering regular team reflections, developing critical skills, identifying actionable improvements, and tracking progress are all essential components that will help your business thrive in a competitive landscape.

6 Ways to Prioritize Your Mental Health While Running a Business

Mental health and wellbeing will improve only when you make them a priority.

Having been a founder and CEO, I've experienced firsthand the immense pressures and mental health challenges that come with the role. The constant demands, high-stakes decisions, and long hours took a toll on my well-being. I faced periods of intense stress and anxiety, which made me realize how crucial it is to prioritize mental health. Through seeking support and implementing self-care practices, I learned valuable lessons.

1. Take mental health seriously.

The role of a founder or CEO is fraught with high-stakes decisions, long hours, and constant pressure to succeed. It's crucial to recognize that mental health is as important as physical health. Neglecting it can lead to burnout, poor decision-making, and even physical illness. Leaders should treat mental health as a critical component of their well-being and business strategy. This includes setting boundaries, taking breaks, and ensuring that mental health is a workplace discussion topic.

2. Be aware of your mental health.

Awareness is the first step towards maintaining good mental health. Pay attention to signs of stress, anxiety, or depression. Self-awareness allows leaders to identify when they are feeling overwhelmed and to take action before things spiral out of control. Regular self-check-ins, journaling, or using mental health apps can help monitor your mental state and recognize patterns that need addressing.

3. Surround yourself with resources.

Having access to the right resources is essential for managing mental health effectively. This can include professional help such as therapists or coaches and practical tools like stress management workshops, mindfulness training, and wellness programs.

Building a network of support, both professionally and personally, ensures that you have people to turn to during tough times. Consider joining peer groups like YPO, formerly known as Young Presidents' Organization, Entrepreneurs' Organization, and Inc. Masters, or professional networks to share experiences and gain insights from others in similar positions.

4. Talk openly about mental health challenges.

The stigma around mental health can prevent many leaders from seeking the help they need. By talking openly about mental health challenges, founders and CEOs can set an example for their teams and reduce the stigma. Sharing personal experiences can foster a culture of openness and support within the organization. It's important to create an environment where employees feel safe discussing their mental health without fear of judgment or repercussions.

5. Prioritize self-care.

Self-care is not a luxury; it is a necessity. As a leader, caring for your well-being sets a positive example for your team. This means prioritizing activities that reduce stress and promote relaxation, such as exercise, hobbies, spending time with loved ones, and getting adequate sleep. Self-care also includes setting realistic goals and staying committed. Remember that taking time for yourself is crucial for maintaining the energy and focus to lead effectively.

6. Support others struggling with mental health.

Founders and CEOs have a responsibility to support their teams. This involves recognizing signs of mental health struggles in others and offering support. Providing access to mental health resources, creating a supportive work environment, and encouraging open dialogue about mental health can support your team. Leaders should also consider implementing policies that promote work-life balance and mental well-being, such as flexible working hours, mental health days, and employee assistance programs.

By taking mental health seriously, being aware of their own mental health, surrounding themselves with resources, talking openly about mental health challenges, prioritizing self-care, and supporting others, founders and CEOs can thrive under pressure and foster a healthier and more productive workplace. Prioritizing mental health is beneficial not only for the individual but also for the entire organization, leading to sustainable success and growth.

7 Questions to Ask Yourself Before Selling Your Business

Ask yourself these questions to make sure you're ready to move on.

As someone who has sold a business and worked with numerous companies, leaders, and CEOs on business growth challenges, I understand the complexity and emotional weight of the process. It's a financial transaction and a significant life event that can impact your professional trajectory and personal life. Here are seven crucial factors you should consider before making this critical decision.

1. Why are you selling the business?

Before anything else, understand your motivations for selling. Are you looking to retire, pursue a new venture, or alleviate stress? Clarifying your reasons will guide your decision-making and help you focus on your goals. For example, if retirement is your goal, you might prioritize a buyer who can maintain the company's legacy, whereas, for a new venture, maximizing the sale price might be more critical.

2. What are non-negotiable terms?

Identify your deal-breakers early on. Whether it's the sale price, keeping certain employees, or maintaining company culture, knowing your non-negotiables helps in negotiations and ensures you don't compromise on your core values. For instance, if preserving the company culture is paramount, you may prefer a buyer who promises to keep the existing management team in place.

3. How much money do you really need?

Assess your financial needs versus wants. Calculate the amount required to achieve your post-sale goals, secure your financial future, and maintain your lifestyle. This clarity will inform your pricing and deal structure. For example, if your goal is financial security for retirement, determine your "number" that covers all expenses and leaves a cushion for unexpected costs.

4. How will this affect your employees?

Consider the impact on your team. Communicate transparently and ensure their job security, benefits, and morale are addressed. A smooth transition benefits both the buyer and your employees. For instance, providing severance packages or job placement assistance can mitigate employee anxiety and demonstrate your commitment to their well-being.

5. How will it affect your family?

Discuss the sale with your family. Understand their concerns and expectations. The decision will impact their lives, too, so ensure they are supportive and aligned with your plans. For example, if selling the business means relocating, it's crucial to address how this change will affect your family's daily life and future plans.

6. What are you going to do afterward?

Plan your post-sale life. Whether starting a new business, traveling, or spending time with family, having a clear vision for the future prevents post-sale regret and motivates the sale process. For instance, business owners who sell their company to travel the world are likely to find that having a well-defined travel plan can help them transition smoothly and enjoy their newfound freedom.

7. What type of deal are you willing to consider?

Determine your preferred deal structure. Options include all-cash, roll-over equity, earn-out agreements, or an executive position in the new company. Each has different implications for your involvement and financial outcome. For instance, an earn-out deal might provide higher overall value but requires you to stay involved in the business for a certain period, which could be a benefit or a burden, depending on your plans.

Selling your business is a complex process that involves more than just financial considerations. It's a major professional and personal decision that will impact many aspects of your life and those around you. These factors will help you make a well-informed decision and ensure a successful transition.

7 Steps for a Productive Calendar

My time-management secret weapon helps me spend my hours on what I want.

Managing your time effectively is essential for productivity and reducing stress. A well-organized calendar can be a powerful tool in achieving this. By following these seven steps, you can optimize your schedule, ensure you focus on what matters most, and create a more balanced and productive workday.

1. Audit your time.

Before you can improve your time management, you must understand how you spend it. For a few days, meticulously track your activities. Take note of what tasks consume your time and which are productive and which are not. Identify what you enjoy doing and what feels like a drain. This audit will highlight time-wasting habits and reveal opportunities for improvement.

2. Identify key activities.

Focus on the top three activities that create the most value for you. These are the tasks that significantly contribute to your goals and have the highest impact on your success. By pinpointing these key activities, you can prioritize your efforts and ensure your most important work gets done.

3. Understand your energy levels.

Your energy levels fluctuate throughout the day and week. Recognize when you're most alert and productive. Are you a morning person, or do you hit your stride in the afternoon? Understanding these patterns allows you to align your most demanding tasks with peak energy times, maximizing efficiency.

4. Time block key activities.

Create dedicated time blocks for your key activities during your peak energy periods. This practice helps you focus on high-impact tasks without distractions. Consistent scheduling of these blocks ensures that your most important work receives the attention it deserves.

5. Schedule other activities.

Once you've allocated time for your key activities, fill in your calendar with other necessary tasks. Group similar activities together to minimize context switching and improve focus. This methodical approach helps you manage routine tasks, emails, and meetings more efficiently.

6. Create buffer blocks.

Incorporate buffer blocks into your schedule to allow for flexibility. These blocks can be used for breaks, transitions, or unexpected tasks that arise. Buffer blocks prevent over-scheduling and provide the breathing room you need to adapt to changes without stress.

7. Defend your calendar.

Protect your schedule from unnecessary disruptions. If you need to move an important task, reschedule it immediately rather than deleting it. This practice maintains the integrity of your calendar and ensures that critical activities are not overlooked. Being disciplined about your schedule helps you stay on track and focused.

Mastering calendar management can significantly enhance productivity and reduce stress. You can achieve a more balanced and effective work routine by auditing your time, prioritizing key activities, aligning tasks with your energy levels, and creating flexible schedules. Defend your calendar to maintain focus and ensure you maximize your time.

5 Questions to Ask Before Negotiating an Earnout

Before selling your business in a deal with an earnout, consider these issues carefully.

Exiting a business is a huge accomplishment. While we all would love a unicorn IPO, most exits are private transactions that involve multiple terms and conditions. One common approach is for the buyer to pay some amount at signing and another amount over time, often conditional on the business's ongoing performance. For a buyer, it's a way to offset some of the risks and uncertainties. For the seller, it's a way to increase their overall payout.

Commonly referred to as an earnout, this can create a more complicated set of decisions for the seller. It's not a simple transaction with the buyer getting the business, and the seller getting cash and walking away. Earnouts can take various forms, but they all put the seller's remaining payment at some degree of risk. If you're staying on to run the business, you have a much more involved set of considerations.

As a strategic business coach, I've worked with many founders who have sold businesses and have also gone through the process myself with my own business. Before any of my clients consider an offer that involves an earnout, I make sure we discuss these key questions.

1. Are you willing to walk away?

Once you sell your company, you're no longer in control. Someone else is the boss. As much as you can do your due diligence and feel comfortable about the new deal, it's not your show anymore. If you're attached to the earnout and need the money, you'll be in a bind. And for all of the founders I've worked with, that wouldn't go well.

In all of the deals I've been involved in, I make sure that the seller is OK walking away from their earnout. We make sure whatever they have in their hand at the close is enough. If they stay for the earnout, great, but they don't have to. It doesn't mean it will be fun or pretty, but they could do it if they have to. That's the only way to avoid the bind.

2. What's your chance of success?

I've seen deals with huge earnout potential, but when I dig into the conditions and targets that need to be hit, it's clearly a hail mary play. I'm fine with some stretch goals, but we want a base scenario that is highly doable and profitable. Make sure your plan is feasible and that you feel capable and resourced appropriately to hit your targets.

What makes this more complicated is that you will likely not have as much control as you had previously. The new owners can limit investment, block or force hires, control policies, etc., which will likely impact your ability and/or increase the difficulty of hitting your numbers.

3. How will your day-to-day change?

All of the founders I work with cherish their autonomy and control. As much as they might complain about being overworked and demanding a routine, they secretly love it. Why? Because they have control and, in the end, it's their choice. Even if they get up at 4 a.m. to get to the office, they know they don't have to--they choose to.

Once you sell, your control and autonomy will be limited. Even if you retain management control, you will be under more pressure to work within set structures, follow new policies, attend meetings, etc., which you will not have as much control over. For some, this is fine. For others, it will feel like a prison sentence.

4. What's your opportunity cost?

While staying on for a few years might give you a second bite at the apple, you'll be putting in serious effort over an extended period. It's not free money. It's an earnout. Consider what you might do with that time otherwise. Maybe you'll start a new business? Maybe you'll spend some time with that family you've been neglecting? Maybe you'll just take some time to breathe? Those are valuable, and you'll be giving them up.

At a minimum, you want to ensure you're being compensated for your time and energy. In addition to any earnout for the value of the sale, you want a hefty executive package with its own benefits and bonuses. Ideally, that would also include a severance package if anyone decides that the plan isn't working.

5. Do you like your new boss?

Once you sell, you'll have a boss. This will be literal if you're joining an existing leadership team and there is an existing CEO. If you're staying on at the head of the company, you'll be reporting to a board that will have governance rights and control big decisions. Either way, you'll have to answer to someone. Do some research and talk with others to ensure you're comfortable with the relationship and feel like you can develop an effective working relationship.

Answering these questions will help you decide if you're ready to do a deal and stay on going forward. While you might not get perfect answers to all of them, having thought about them will help you be prepared for things that come up. In the end, there is no perfect deal, but you can certainly avoid a nightmare with some careful consideration.

7 Things That Can Squash a Sale

Selling a company is a complicated process with many pitfalls. Here are the common ones and how to avoid them.

Selling a company is exciting, but it's certainly not easy. As a strategic business coach, I've worked with several companies that have gone through the sale process or have acquired companies to fuel growth. I've also been a founder myself and exited my business successfully. It's quite a ride--and often one that feels more like a rollercoaster than a lazy river.

Many deals fall apart, and for every successful sale you read about, there were likely a half dozen failed attempts before that. Here are some key reasons business transactions don't work out and what you can do to avoid them.

1. Not having your ducks in a row

Before you begin the sales process, you need to have everything in order and ready for buyers to review. This includes updated and accurate financials, client lists, customer contracts, employee agreements, records and policies, and anything else a potential buyer may want to review before making any offer. This will speed up the sale process, but more importantly, it will instill confidence in the buyer that you have your 'stuff' together and they can trust what you're telling them.

2. Mismatched expectations

Too often, I've seen buyers and sellers have fundamentally different visions about the future value of the company. If a seller hopes to sell the company and head off to the beach to retire, and the private equity firm expects them to stay and grow the business for another five years, things won't work out well. Conversely, if a strategic buyer goes to strip the company of its assets and lays off all the people, and the seller is attached to their people and culture, then there will be conflict. Figure out what you want so you can check buyer fit early in the process.

3. Unpredictable performance

Nothing unnerves a buyer more than erratic and volatile business performance. Yeah, you might have had a few record years with amazing profits, but if, between them, you have unexpected losses and rebuilds, they will think twice about buying and certainly won't pay top dollar. Make sure you have a clear and effective business planning process and a systematic way of generating results on a consistent and predictable basis.

4. Unmitigated risks

Every business has risks. The trick is to assess them quickly and develop effective mitigation strategies to reduce their impact or avoid them altogether. A seller with a good system and track record of good risk management will inspire confidence in the buyer. If a buyer can uncover multiple risks that the current team doesn't have a clear strategy for addressing, their offer will certainly reflect that.

5. Unprepared sellers

Sometimes the business is in good shape and ready to sell, but the owners are not. I've been involved in more than one deal that was made more complicated or even sabotaged because the sellers hadn't really figured out their personal plan post-sale. If you're a founder, your ego and overall life purpose can be tied up in the company. Without a clear plan and a new vision, selling your company can feel like cutting off a limb. Make sure you've done the work and are really ready to handle the transition.

6. Skeletons in the closet

Once we decide to start working towards a sale, one of the first conversations I have with the founder is to show me all the skeletons in all the closets. I want to get them out now so we can deal with them, not in the eleventh hour when we're at the table trying to close the deal. Disgruntled ex-employees, unhappy clients, creative accounting, and unlicensed software, all need to get on the table upfront if we're going to have a shot at avoiding deal killers.

7. Flagging performance

The process of preparing and selling a company can be all-consuming and very distracting for leadership. Keep your eye on the ball and maintain your company's growth and performance, even when pitching the business. It's not uncommon for leadership to get caught up in the deal and end up with a down month or two of business results. This can often kill a deal and will certainly affect the price. Manage your time and resources appropriately to keep your team on point.

While every deal will have twists and turns, and you'll have to compromise on the numbers and terms, avoiding these key issues will minimize the drama and the pain and increase your likelihood of a successful and substantial exit.

7 Steps to Create a Sales System for Growth

When revenues go flat, most CEOs want to hire salespeople. Instead, create a sales system that can scale.

As a strategic growth coach, I've worked with dozens of leadership teams to help them grow and scale their businesses. While there are many challenges these companies face, growing revenue is generally at the top of the list. Without more sales volume, it's impossible to scale a business effectively.

Too often, however, when I first speak with CEOs about how they've tried to grow sales, I hear horror stories about hiring expensive salespeople, sometimes several, who made big promises but failed to deliver. Honestly, I made the same mistake myself more than once.

The fact is that a hired gun is unlikely to accelerate sales, even if they have an existing book of business. Who you sell to, what you sell, and why customers buy will dramatically differ from business to business. So, a salesperson who's crushed it with one company doesn't guarantee they will crush it at yours, despite what they promise.

The solution is to focus on creating a strategic sales system that targets your specific ideal customer, positions your product or service correctly, and closes deals consistently. Once you have a system in place, you can begin scaling and optimizing it to grow your business.

Here are the key steps I focus on when working with my clients to build an effective, repeatable, and scalable sales system.

1. Identify your target customer

Start by articulating your target customer. I like looking not only at demographics but also at psychographics and buying motivators. The better you understand your customer, their situation, why they are buying, what criteria they use, and their buying process, the better you can design your system to support your customer's needs.

2. Define your value proposition

Without a clearly differentiated market position, you'll be competing on price, which is a bloody and painful battle to be in. Instead, find two to three buying factors you can focus on and hone your products and services to be exceptional in those attributes. A unique product or service will be more valuable for your target segment, allowing you to charge a premium price and create more profit opportunities.

3. Develop lead generation strategies

Too often, I see companies randomly trying lead generation tactics without a strategy or system for measuring success. When something doesn't immediately lead to more sales, they drop it and try something else. Instead, ask yourself where your ideal customers will likely be looking for solutions, what content and assets you have to leverage, and which utilize your natural skills and capabilities as a company.

If everyone in your company hates public speaking, then that's not a good approach. However, maybe you have a strong vendor network and can create an effective affiliate sales program. The point is to create leverage based on your unique situation and measure success, not just copy what everyone else is doing.

4. Map out your sales process

Once you have a lead, you must know how to move them through a structured sales process. You can't close a deal until you've developed trust and understood the customer's needs. You also want to create clear stages that can be reviewed and improved. While it can feel a little rigid at times, it's the only way you'll be able to track results and create a predictable system.

5. Measure and improve

The next step is to measure and improve the system. Tracking numbers and keeping good notes will be key to making adjustments. Don't be afraid to experiment and try new things, just keep track of the metrics to know what worked and what didn't. Oftentimes, little changes to the early stages can lead to big changes in conversion rates and increase efficiencies.

6. Standarize and systemize

Once you've identified processes that work, find ways of standardizing and systemizing them. Make a checklist for scoring leads, create standard questions to ask, set requirements for leads to advance, etc. While you need to balance the rigidity of your system with the need to innovate, I find most companies aren't structured enough.

7. Train and improve

Finally, once you have a system that works, you can then identify key roles, skills, and experience requirements you can use to hire, train, and develop good salespeople. The big win here is that with a well-defined sales system, you can generally hire less experienced people who have the specific skills you need. This will save you money on salaries, onboarding, and training.

While there is an art to closing deals, creating a sales system can take a lot of guesswork and variability out of the process. You'll need to hire salespeople to grow your business, but don't expect them to be a silver bullet. Instead, create a system that produces consistent rules. Then you can drop the pedal and fuel your growth.

5 Hard Questions to Ask Yourself Before Selling Your Business

Selling a company can be the most exciting event of your career, or it can be the scariest. Ask yourself these questions to decide.

For many founders, selling a company is the ultimate accomplishment. The dream of starting something from scratch, growing and scaling the business, finding a buyer, and exiting is the stuff movies are made of. While it can be quite thrilling and satisfying, it can also be a dramatic and, at times, a traumatic process.

As a strategic growth coach, I've worked with dozens of companies on how to create and implement successful scaling strategies, and many of them have found successful exits. I've also been a founder and CEO myself and successfully sold my business. While they were all big wins, they came with a lot of complexity and anguish that could have been avoided.

Today, when I speak with founders about selling, I have a series of core questions that I ask them before we engage in any growth or exit planning process. These will uncover key issues that must be addressed and create a solid roadmap for the process.

1. Why did you start your business?

I always like to start by having founders reflect on why they started the business. For some, it was a random series of events that got things going. For others, it was a carefully thought-out plan with clear goals and ambitions. Regardless, it's helpful to uncover any motivations or dreams that inspired the company's start that need to be considered when planning an exit.

2. What are you going to do after you sell?

Too often, I see founders get into the heat of the sale process only to have an existential crisis when selling becomes a reality. They put their sweat, blood, and tears into this business, and the idea of letting it go can become overwhelming and unnerving. Without a clear plan for what you'll do after you sell, you'll subconsciously sabotage the deal.

Drinking pina coladas on the beach doesn't cut it. Founders need a new passion and project to work on. It could be a new business, or it could be a personal or social pursuit, but they need something. You need to know what that is before you begin to think about selling.

3. What's your minimum number?

One of the first exercises I do is to ask founders how much money they want in their pockets at the end of the sale. Many have no idea, in which case we have work to do. For those who have a number, we look into what it will take to get to that number based on the current company finances. For some, this might be a simple private equity play. For others, we might need to spend a few years growing and improving the business and finding a strategic exit before we have a hope of hitting it.

4. What are your acceptable deal terms?

Sales agreements cover a lot more than cash on the barrel. There are often ongoing earnouts, bonuses, reps and warranties, non-competes, employment agreements, and many other terms that can impact a deal's attractiveness. Knowing which ones are acceptable and which are not will greatly change the types of possible deals.

5. How can you increase valuation?

Generally, most businesses are not ready to be sold, certainly not at an optimal price. They need to be adjusted and optimized for valuation and handover. This includes simple things like having your books in order or complicated issues like client concentration and key person risks that will hurt valuation. Ideally, you want to have 12 to 24 months to address these items before beginning the sale process.

Selling a company is a major event and a huge accomplishment for any business owner. It can also be a nightmare and horribly stressful. While it's always a bit of a rollercoaster, getting these questions right will determine if you'll be enjoying the thrill with your hands waving in the air or if you'll be clutching the safety bars wishing you never got on the ride.

Creating KPIs Is Usually Complicated, but It Doesn't Need to Be. Here's How

Strategy is hard, but not as hard as execution. KPIs solve this problem, but you need to get them right.

Growing and scaling a business requires a solid strategy and disciplined execution. As a business growth coach who's worked with dozens of high-growth companies, my job is to help leadership teams solve these challenges. Getting both of these right is key to helping a company reach the next level.

While strategy is hard, with a good process and a smart team that knows their core customer and the competitive landscape, it's generally not that hard to find a differentiated position that can help drive sales and profits. Most markets have white space that can be found and leveraged to create a niche.

Execution, however, is harder. Most teams get overwhelmed with day-to-day operations and putting out fires. They struggle to implement strategic moves and fail to improve processes to support growth and expansion. While strategy takes a lot of hard thinking, execution takes a lot of elbow grease.

One key tool I use to help teams execute is key performance indicators (KPIs). These are specific metrics that help us measure and manage key business processes. While it's easy to come up with lots of KPIs, it's hard to select the right ones that will really drive performance and growth.

The key here is to think of your business as a series of systems that work together to produce critical outputs. These include work products, loyal customers, intellectual property/assets, reputation, and, of course, cash. By thinking in systems, you can begin to identify what needs to be measured and managed for effective scaling.

Here are the key steps that I use to help teams identify the areas of the business that need KPIs, implement them, and use them to scale the business.

1. Identify your core processes

Every business is a series of systems and subsystems. Marketing, sales, delivery, customer services, etc., all have core steps and activities that feed into each other. Map these out and identify how they interconnect to create value for your customers and put cash in the bank.

2. Map the main steps

For each core process, map the core activities and how they work together. For marketing, this might be targeting prospects, developing offers, creating content, delivering content, capturing interest, qualifying leads, and handing off to sales. Each activity should have an input and output and some measure of success.

3. Brainstorm input, performance, and output metrics

For each core process, brainstorm three types of metrics. Input metrics are the activities that feed the process, such as cold calling for a sales team. Performance metrics show how the internal parts of a system are working, such as parts inventory for an assembly process. Output metrics measure outputs, such as quality for a manufacturing system.

4. Select two or three KPIs for each

Choose two or three of each metric type for each core business process. These will become your complete KPI framework for the business. While they might adjust and change as your business shifts and grows, they should remain reasonably stable over time.

5. Measure and baseline

Before you can start improving, you need to measure and stabilize each one. You can't improve a system that's not defined and stable. Take the time to standardize the steps and measure performance over a set period of time.

6. Establish growth and improvement targets

Given your strategy and future vision, set your key targets for outputs and then work backward. If you're producing 230 widgets a day currently and you need to be at 1,000 widgets a day in two years, figure out what other metrics need to change. While you might just need to include input metrics, you can also look at process metrics. Doubling your conversation rates on sales meetings will have the same effect as having twice as many meetings.

7. Set review rhythms

Set a clear schedule for reviewing and revising your metrics. As the business strategy evolves, the outputs, customers, and competitive landscape will change, and this will change your systems. Successful companies use this process to drive process improvement and innovation.

Understanding your business as a system gives you the perspective and tools you need to plan your growth. Getting the right KPIs in place will help you manage and accelerate your growth. Getting these right can make the process easier and faster. Getting them wrong can lead you down rabbit holes and frustrate the process.

I Teach Leaders to Solve Problems. Here's My 6-Step Framework

If you want to get good at growth, get good at fixing problems. Here's how to do it predictably and repeatedly.

As a strategic coach, I work with high-performance leadership teams to build growth roadmaps. Oftentimes, the companies double in just six to 12 months. These growth rates expose issues and cracks in the business that must be addressed quickly. Identifying these issues quickly and systematically solving them is key to successful and sustained growth. Having both a framework and experience using it will improve any business's prospects.

Here's mine:

1. Review and reflect

I start by carefully reviewing what happened. Collect as much data as possible on what led up to the situation and how things played out. It's key here to get perspectives and opinions from as many sources as possible. I like organizing things in timelines and swimlanes for different people, teams, and departments. Here, we stick to the facts and try to weed out inferences and assumptions.

2. Find critical issues

Once the situation is mapped out, we look for where issues occur. These could be errors, delays, rework, wasted resources, or unnecessary operational complexity. I have the team dig into these and find the most important issues. I like having them plot what they find using a matrix of likelihood and impact so we can focus on a few issues that are causing the most problems.

3. Define the problem

Once we have a handful of things to investigate, I have the team clearly define the problem, why it exists, and how it's causing it. Once everyone is clear and in agreement on this, I have them articulate three to five success criteria that, once met, would mean that we've solved the problem or improved the situation significantly and sufficiently.

4. Look for systemic causes

Once the problem is defined, we can start looking for underlying causes. I like using a fishbone or tree diagram to visually map these out. Each cause needs to be independent and clearly contribute to the problems. Avoid generalizations and edge cases. For example, don't just say increased shipping costs. Say 22 percent of shipments go out as partial orders, which has increased average costs by $1.24 per order.

5. Pull multiple threads

Once we have several options, we can start finding causes of those causes using the same logic. I call this iterative triangulation as we start broad and narrow down the factors as we go. Sometimes we might hit a dead end, and we need to crawl back up the process to investigate another path. Eventually, we'll find a few core issues that are really driving the problem.

6. Listen to your gut

Sometimes this can be a difficult process, and you'll find several factors. First, I suggest focusing on the factors you can actually do something about. Second, focus on those that can be addressed with clear changes to business systems and processes. Finally, I have people check in with their guts; when they get that sinking feeling when they hit an issue, it probably means it's the one to focus on.

Root cause analysis can be more of an art than a science at times, but being systematic and developing a repeatable process will help it not feel like witchcraft. Teams that do this again and again and get good at it can dramatically improve their learning cycle time and can out-deliver and innovate against competitors.

If You're a CEO Who Struggles to Manage People, Read These 6 Books

If you're a CEO who struggles with managing people, here are six must-read books that will help you up your game.

Being a CEO doesn't come with an instructional manual. And for most founders who end up in the top job of their business, they usually have little to no management and executive experience. Most early-stage, high-growth business leaders find that they have created a successful, thriving business but have no idea on how to manage people.

As a business coach, I work with many first-time CEOs who have big ambitions but also know they need help to grow themselves and their companies. One of the things I do is help them be better leaders and better managers by leveling up their skills and perspectives. Learning to better manage their teams is usually on top of the list.

While there are many ways to learn, here are six of the best books I've found on how to better manage people that I recommend to all my CEO clients. If you're a new CEO struggling to manage your team, this is a great starting point to develop your people skills.

Drive by Daniel Pink

Pink does a great job in breaking down the complex issues of what motivates people into three basic areas. With my CEOs, we speak about AMP: autonomy, mastery, and purpose. Any time we discuss how to motivate a team or an individual, we check in on these three elements and how they can use them to drive engagement and performance. It's a simple concept that can lead to big results, when applied well.

Crucial Conversations, by Kerry Patterson, Joseph Grenny, Ron McMillan, and Al Switzler

Business is full of tough conversations. Unfortunately, many people deal with this by either avoiding conflict or picking a fight. These authors explain how to get clear with your own needs and wants first, create an environment that will foster deep connection and sharing, and honestly listen and consider other people's needs and wants. Only then can you find true solutions and put in place a plan of action that will create real change. This is a book on life, but it's great for the office, too.

Radical Candor, by Kim Scott

While many people avoid giving feedback to direct reports and colleagues, Scott does a great job of explaining why the truly professional and caring thing to do is to provide radical candor. Only through open, honest, direct, and timely feedback can someone grow and learn. Saying nothing is not being nice--it's being apathetic.

Now, Discover Your Strengths, by Marcus Buckingham

I'm a big fan of personal and professional development and I recommend to all of my executive clients that they create a culture of continuous improvement. And while everyone has weaknesses that need to be managed, you're far better off focusing on your strengths. Buckingham does a great job of helping people find the things they are good at and passionate about, to fuel their growth.

Mindset, by Carol Dweck

This book is a game changer for most managers. Dweck shows us why regardless of our skills, experience, genetics, or aptitude, the most influential factor on our ability to learn is whether we think we can do something or not. Those people with a growth mindset will be far more likely to change, and those with a fixed mindset will be far less likely. So before you put together the training plan, coach the mindset first.

Power of a Positive No, by William Ury

I still remember the first time I read this book and how it changed both my professional and personal life. One of my core values is to be of service to people and help them. But I found myself saying yes to everything and trying to help everyone and as a result spreading myself too thin and not being very effective. Ury taught me to develop a clearer picture of my bigger goals and purpose and to use that to say "no" to many requests so that I could say "yes" powerfully to the ones that truly mattered to me.

The six above are just a start. There are countless other books on managing people and how to create a great culture in your company. And you should strive to read all of them if you want to be an exceptional leader. People management is not just a good skill to have, it's what will drive your professional success and the success of your company.

The Transition From Founder To Ceo Is Not An Easy One. Here’s What To Focus On

Over time, you will need to become your company's CEO or bring one in. Here's how your focus will change.

What it takes to start a company is not what it takes to scale a company. In fact, the mindset and skills that made you successful as a founder can work against you as you step into the role of CEO. Your strategies and your focus need to change, and if you fail to make those changes, you'll hinder the development of both you and your business.

As a strategic coach, here is what I zero in on when working with Founders versus working with CEOs. Each role has a unique and different area of focus and skill set that makes it successful. Through coaching, I help my clients identify the role they need to be in, based on the stage of the company's development.

What makes a great founder...

1. Finding unmet needs in the market

To start a business, you need to find that unmet need--the one that causes a lot of problems. Great founders can hone in on problems that haven't been solved well, and when solved will generate value.

2. Developing early solutions

Once you find a problem, you need to develop a solution. This could be either a product or service, but it needs to directly address the problem in a way that is truly a solution in your customer's eyes. The best way to know you're onto something is if people are willing to part with their hard-earned money.

3. Defining a clear vision

You must see into the future and paint a vivid picture of a better version of the world that you see. Not only will this drive your own passion and motivation, but it will also help people get on board and drive engagement within the company. 

4. Selling to customers right away

Good founders might not know the latest sales tools and techniques, they are natural storytellers and highly persuasive. As a founder, one of your core jobs is to meet with the right prospects and convince them to buy what you have to offer.

5. Securing early-stage investors

Startup capital is key to a healthy launch. Getting money from friends and family, angel investors, and venture capitalists is one of your top tasks. Knowing how much you need, what you're going to do with it, and who to get it from is key.

6. Recruiting founding team members

Finally, you must build the initial founding team with the right people and put them in the right seats. And while skills and experience are critical factors, so is getting the right culture and core values. At this stage, one bad apple can be disastrous. 

What makes a great CEO...

1. Developing market segments and channels

Once you have traction and your business is growing, one of your key tasks is to identify the best segments to sell to and what channels to sell through. By slicing and dicing data and looking at who buys at a good price, who is easy to serve, and who promotes you in the market, you ensure that your company continues to make progress.

2. Refining and optimizing products/services

With a product or service successfully in the market, your job is to ensure it is continuously improved and optimized. As CEO, when you improve the value you deliver to customers, while also looking for ways to remove waste that doesn't add value, you will drive growth.

3. Setting strategy and key milestones

Once you have a foothold in the market, the CEO's job is to plot the course for growth and success through strategy and focused execution. Defining your strategic position and articulating the key operational milestones for getting there is your responsibility.

4. Developing marketing and a scalable sales process

While early sales are opportunistic and ad hoc, developing a defined and repeatable sales process will be key to scaling the business. As CEO, you need to put these in place and ensure they are being followed.

5. Managing investors and the board of directors

Investors need to be informed and managed. They also need to be leveraged for insights, contacts, expertise, and resources. A good CEO leverages their board for the success of their company.

6. Organizing your team and developing your culture

Rather than directly recruiting individuals, a CEO needs to create a people system that will serve the future vision of the company and a culture that attracts and retains the right people.

While these are not all of the differences between a founder and a CEO, they are some of the most important ones. While nobody goes to sleep a founder and wakes up a CEO, making the transition quickly and efficiently can help fuel your company's growth and evolution.

5 Common Cash Flow Mistakes That Can Slow Fast-Growth Companies

If you want to grow quickly and predictably, make sure you avoid these five cash flow challenges.

As a strategy and leadership coach, my job is to help businesses scale quickly. Most of my clients are doubling every one to two years, and some as quickly as six months. While this growth is fun and exciting, it can also be complicated and painful.

One of the more difficult and hard-to-see challenges of growth is managing cash flow. Just because sales are skyrocketing doesn't mean the bank account is. Knowing how to calculate profit, forecast sales and expenses, and identify areas of profitability versus areas of limited growth is crucial in making key business decisions.

Scale puts a lot of pressure on systems and people; sometimes to a breaking point. I've seen companies take a $10 million business that's running at 22 percent profit and grow it to a $25 million business running at a 5 percent profit and lose money when they factor in expansion and capital costs. As any private equity analyst would tell you, growth that doesn't also increase the net margin isn't worth the investment.

Here are five factors that will impact your margin and growth calculations that will impact your profitability and cash flow.

1. Costs of marketing and sales

When you're growing rapidly, things change quickly. How you market and sell your product or service when you're making just a few million in revenue could be quite different from when you're making $100 million. Developing new channels, competing in different markets, and running up against different competitors will all change your strategies and tactics, and these will likely change your investments and spending.

What might have been a high-margin line of business can quickly become unprofitable in later stages of growth. Being able to track and monitor these numbers is critical. Know how to associate marketing and sales costs with your different lines of business, track them as you grow, and ensure you're making good investments.

2. Getting paid on time

Customers can't pay you if you don't send them accurate invoices on a timely basis. I've seen companies get so caught up in selling in a hot market that they drop the ball on accounting and build up huge accounts receivables. This will tie up a lot of working capital, but it also significantly increases risk to the business. When the music stops, it doesn't matter who owes who what; only those with cash survive.

3. Understanding your cash cycle

For most businesses, you have to invest in marketing and sales, raw materials, inventory, production, and delivery before you can invoice and get paid. These amounts and timing create a conversion cycle that consumes cash. If you don't understand this and forecast it well, you can quickly grow yourself broke. Sometimes even out of business.

While there are financing strategies for this, they are expensive and volatile. It's better to optimize your pricing, payment schedule, and delivery turnaround times to reduce the cash demands. In extreme cases, you can invert this cycle by requiring large upfront payments and pushing off expense payments. In these cases, growth creates cash and can become a virtuous cycle.

4. Calculating costs of capital

If you're a heavy manufacturing business that needs equipment and raw materials, you'll need cash to invest to fuel your growth. And relying on outside funding sources can quickly become expensive. Make sure you're calculating the real cost of capital and factor that into profitability both at a product line and overall business level. Otherwise, debt servicing payments can quickly gobble up any additional profit you make.

5. Expansion costs

With growth comes expansion, and for many companies, this requires non-trivial investments in facilities, equipment, inventory, staffing, and training. You need to factor in these costs and allocate them to your products and services appropriately. Often, lines of business will oscillate wildly as you grow into and out of big fixed costs like machinery and office space. Know what they are and how they impact growth costs and profitability.

Every company needs to grow. If you're not growing, you're shrinking. Understanding how your business engine works and knowing what it will consume resources as you grow is critical. If you're growing fast, you need to be a master at it. Getting these right can drive significant success. Getting them wrong can be painful, and if you're not careful, terminal.

The Best Leaders Focus on More Than Just Their Professional Success

To create a balanced life, you need a framework and a plan. Here are six areas to reflect on to create more balance.

Everyone talks about the importance of balance in life. But what does that really mean? Too often, we pay lip service to the idea without a plan or a framework for how to create it. Without a plan, things won't change, and without a framework, we can't make a plan.

When working with my executive clients, we focus on the following areas. We assess each and evaluate how it's currently going and where we need to make changes to create a healthier balance. While we don't always need to focus on the lowest scores, we want to understand where we need to make changes to address critical risks and priorities.

1. Personal development

First and foremost, healthy and balanced executives prioritize their personal development and self-care. This includes practical matters like regular health checkups and investing time and energy into personal interests and hobbies. While I don't expect the leaders I work with to be competing in Ironman triathlons, though several do, I do want to make sure they have some regular routines that keep them physically and mentally fit.

2. Immediate and extended family

I've seen too many executives, both men and women, get so wrapped up in advancing their business that they neglect their families. Not just partners and children but also siblings and extended family. While all families have drama and can be difficult, families are key to our support network and social connections. Making time for family will keep you balanced, reduce stress, and increase overall life satisfaction. Being busy with work is not an excuse for neglecting these important connections.

3. Friends and other relationships

I often challenge executives to name five close friends whom they could share anything with and who are not family members or connected to their business. Most fail. Some can't even name one or two. This is a problem, because family and business connections are too intertwined in your decisions and success, which means you're less likely to share significant challenges for fear of upsetting them, and they are less likely to give you honest, and sometimes difficult, feedback. True friends are a key resource for working through big issues because they only have your best interests at heart. They can give you some tough love if needed.

4. Professional development

This is more than just making more money. It's about charting your career beyond your current business or job and setting big goals that are meaningful and impactful for you. Knowing your larger ambitions allows you to make better short-term decisions that will nudge you toward the bigger picture. This also involves setting your professional development goals and determining what you need to add to your executive toolbox. Without a long-term plan, you'll, at best, wander around aimlessly, at worst, paint yourself into a corner.

5. Financial matters

Most executives I work with are highly motivated by money and building wealth. Assuming they are also striving to improve their relational connections and mental and physical wellness and positively impact their communities, then I'm all for it. The challenge is that being in a solid financial situation is more than making a lot of personal income. It's about protecting yourself and your family with insurance, building a reasonable savings and retirement account, and investing in assets that will provide you with future resources and opportunities. Unfortunately, many executives focus solely on making more income and not on building wealth and security.

6. Community and legacy

At some point, making more money and building an even bigger business becomes unfulfilling. Once you've taken care of your needs and provided for your family, you need to start thinking bigger about the impact you want to make on your community. Getting involved in social matters that you care about and can have an impact on becomes your next playing field. Take a stand and use your leadership and resources to create a better world for the next generations, both yours and everyone else's.

A multifaceted and balanced life not only makes you a more capable and successful executive but also makes living it more fun and engaging. The best executives I work with find strategies for leveling up multiple areas with the same initiatives. For me, it's been getting outdoors and going on adventures with my kids. It checks the mental health box, the family box, and the personal development box.

You won't always have a perfect balance, and that's not the goal. Things will flow and change. The goal is to monitor, create intentions, and take actions to keep things from getting too out of whack. The best executives make this a regular habit rather than trying to save things when they are in crisis.

If You Want to Scale Faster, Choose a Niche and Excel in It

Forget competition, embrace differentiation: a proven strategy for growth.

When I founded my tech company, I spent the first several years solely focused on acquiring clients and generating revenue. It was a hustle that I enjoyed and excelled at. Finding prospects, conducting sales meetings, developing proposals, and closing deals. I enjoyed the challenge and the thrill.

Over time, I had to bring on other people to help market and sell our services. It forced us to become more focused and systemized. I had to figure out what we were selling, to whom, and what the real benefits of our solutions were. This compelled us to rethink our strategy. I realized that until that point, I was just chasing money and trying to nip at the heels of our bigger competitors.

What I quickly realized was that I was never going to really compete with the big dogs by trying to go head-to-head. It was easy to find a few scraps here and there, but it would be a brutal and bloody process. Instead, I realized that we needed to offer something different, something that couldn't be reduced to a price war.

After reading dozens of books, taking several courses, and even hiring several consultants, we crafted a unique position in the market tailored to specific core customers. This allowed us to refine our operations and services and to create a unique selling position. We no longer had to compete on price, and we dramatically reduced the sales lead time and increased our success rate.

Now, as a strategic coach, I've worked with dozens of companies on positioning, operations, and sales. Here are some key aspects I focus on to help teams craft a unique market position and accelerate growth.

1. Clarify your purpose.

I always start by clarifying why we're even in business. This helps remind us of the reason we do the work and sets a north star for guiding the rest of the work we need to do. I like a simple formula that clarifies who we serve, what we provide them, and the benefits they get from our products/services.

The trick here is to define this in such a way that it's narrow and focused, yet expansive enough to be pursued over decades. A good long-term purpose will help you make decisions on every other part of the business. If it's too broad, it lacks direction; if it's too narrow or short-term, it fails to inspire innovation.

2. Understand your core customer.

Too many companies I speak to say they can do anything for anyone. While they might have a broad range of skills and capabilities beneficial to many businesses or customers, trying to be everything to everyone just doesn't work. You need to clarify who you serve and why to create an effective strategy.

When defining your core customer, I like to focus on four key things: demographics, which provide insights into their profile and whereabouts; psychographics, which tells you their core values and what topics and content will resonate with them; needs and fears, which clarify why they are buying and what your solution will do for them; and buying triggers, which tell you when they are likely in the mood to start a sales conversation.

3. Identify all competitors.

Once the core customer is defined, it's essential to identify competitors. Once we have this list, we can look at each competitor's unique attributes and how they are approaching the market. The trick here is to look deeper than price. Some competitors may excel in quality, others in service, and some in ease of implementation.

Be sure to consider direct and indirect competitors. Direct competitors are other solutions similar to yours that a prospect would consider in comparison to you. Indirect competitors are solutions that solve the problem but in very different ways. This might include building a solution in-house or even just coping better and living with the problem. Knowing all of the options a prospect has is crucial.

4. Find your white space.

Once you have the competitive landscape mapped out, you can plot everyone on the various criteria that your customers use to make a purchase decision. I like visualizing this in a chart so you can see the areas that have a lot of competition and, hopefully, a few areas where nobody seems to be excelling.

The goal here is to find some white space where you can craft a differentiated position and stand out in the market. This might be by selecting one or two areas that are completely open or combining a few attributes in a valuable way that's unique in the market.

5. Innovate key activities.

After you've found a new market position, you can start looking at your operations and delivery. While there are many things you need to do well as a business to be successful, find eight to 12 key activities that will directly drive your success in your new niche. Focus your efforts and innovation on these areas. Everything else should just be "good enough." The goal here is to put more wood behind fewer arrows.

The key to strategy is to focus your efforts and energy. Without a clear strategy, spreading too thin and pursuing too many targets is inevitable. Strategy is about choices and aligning everyone in the organization around a core set of key decisions about who you are and what you do. Getting these questions right and making real commitments will accelerate your growth and success. Continuing to chase everything with a dollar sign will quickly leave you exhausted and likely going in circles.

Strategy Is More Than a Pretty Plan

Many companies face the challenge of creating a strategy but struggle to implement it effectively. Here are eight ways to focus your operations to drive impact.

Creating a strategy is hard work. It requires reliable data, keen insights, a touch of innovation, and a lot of difficult decision-making. When executed effectively, it can create clarity and focus that can truly accelerate a business's growth and profitability. If done poorly, it can be a time and money pit that leaves you more confused than when you began.

However, the most challenging aspect of the strategy is implementation. A strategy that doesn't drive actions remains a dream. You need to drive strategy into the heart of a business operational system to see an impact. The key to achieving this is to identify and focus on a specific set of operational activities.

As a strategic coach who has collaborated with dozens of companies on strategy, I prefer using what Harvard Business School professor Michael Porter calls an "activity fit map." An AFM captures the unique and focused set of interconnected activities that drive a company's market positioning. While a company needs to excel in various aspects, the AFM identifies activities where exceptional performance, not just adequacy, is essential.

Creating an AFM can be challenging and somewhat of an art. While they evolve, it's crucial to refine them from the beginning. When guiding teams on strategy, I encourage considering the following factors when generating their map.

1. Capabilities and capacity

The initial focus should be on assessing raw capabilities and capacity. Can you do the things that you need at the volume/quantity that you need to do them? Building capabilities and capacity is a fundamental way to establish differentiation. Possessing the ability to do things that competitors can't do at a volume they can't support is a core value driver.

2. Processes and procedures

Some companies have capabilities similar to their competitors'. However, differentiation is still achievable by improving and excelling in variables such as speed of delivery or quality. In these cases, having well-structured processes and procedures becomes a differentiating advantage. You'll win in the market if you can deliver faster, more consistently, and with high quality.

3. Policies and business rules

In some cases, your ability to drive strategic value is based on the decisions you make, whom you make them with, and how quickly you can make them. A classic example of this is Southwest Airlines' decision to only use 737 airplanes. This choice simplified pilot training, reduced maintenance complexity, and standardized operational procedures. It was a simple rule that had a far-reaching positive impact on the company's ability to deliver on strategy.

4. Knowledge and data

Many companies have generated strategic value by accumulating a substantial volume of data and insights. These can be used to identify patterns and trends, as well as create insights for customers that other companies just can't provide. Evaluate what your business has or could capture that might be of value to your prospects.

5. Relationships and reputation

If you've been in business for a while and have a good reputation and deep relationships with key companies, you can turn that into a strategic advantage. These relationships will provide access to supplies, information, and talent, along with the ability to forge new relationships quickly based on your history. IBM, for example, was hired many times because of its reputation and weight in the industry.

6. Intellectual property and copyrights

While enforcing intellectual property and copyrights can be costly, it gives potential competitors pause before going head-to-head with you. If you have or can obtain legal protection for what you do or how you do it, it could create strategic value. Just be sure the cost is reasonable and that it's enforceable and difficult to circumvent.

7. Talent and expertise

Although people can come and go, having a team of highly skilled and capable staff is a real advantage in many businesses. For service companies like law, engineering, architecture, and design, significant experience in specific industries and deep experiences in domains can be key to driving strategic value.

8. Sourcing and supplies

For many companies, strong relationships and formal agreements with key suppliers are strategically important. If you have access to supplies and materials that others don't, or maybe at a price or volume that others can't get, you can create leverage. When possible, secure exclusive agreements to lock out competitors or negotiate a pricing agreement that gives you a clear advantage.

A great strategy without a set of operational activities to back it up isn't worth the paper it's written on. If you want to be successful, you need a clear and specific differentiated position and the operational plan to make it happen. The best strategies are ones that lead to operational focus and innovation, not just pretty slideshows.

Journaling Is a Core Practice for Leadership Development

Here are 5 strategies to help accelerate your growth.

There are many ways to develop as a leader, such as taking courses, reading books, attending seminars, or even hiring leadership coaches like me. Each method has its strengths and weaknesses, playing a unique role in your development. However, there is one practice that is fundamental in every leader's development toolset, and that is journaling.

Journaling allows you to observe and analyze your thinking in a way that no other feedback tool can match. By putting your thoughts on paper, you can see how you approach a situation, frame the context, process the information, and make decisions. This perspective provides us insights and allows us to make connections that are often elusive when thoughts remain in our heads. Furthermore, journaling is something anyone can do with the simplest of tools, which means it's cheap, accessible, and easy to start.

While just about any form of journaling can have benefits, there are a few techniques I use with executives who are looking to improve their leadership skills. While I like good old pen and paper, digital journaling apps can be just as effective and convenient. Learn and use these techniques to focus and structure your journaling for different situations.

1. Mind sweep

This technique is great for getting everything rattling around your head onto paper. Start by writing down all the thoughts, ideas, reminders, and anything else that pops into your mind. I find that after a few minutes, my thinking slows down. I'll take another few minutes to dig deeper to purge everything. Then, once I have a list in front of me, I can start processing things into action items, things to think about more later, and things I'm just going to forget about. Seeing the list allows my mind to let go of these and frees up space to concentrate and do focused work.

2. Decision making

One of the key skills I work on with leaders is decision making. In this journaling practice, we write to our future, more enlightened self. In our journal, we explain the situation as we see it, the information we have and how we analyze it, the options we can see, which option we're choosing and why, and what we expect our outcomes to be.

Later, we can review the entries and compare what we wrote with how things actually turned out. We look for things we missed and errors we made. Maybe we failed to gather some key information, missed an option that could have been better, or were blind to a risk that could have been avoided. Sometimes we find that there was nothing we could have done better. The goal here is to learn what we want to do differently in the future to avoid the same mistakes and to lock in good practices.

3. Envisioning

When striving toward a big goal or embarking on significant changes, the future can seem foggy and confusing. Taking some time and creating a clear and compelling vision of the future state we're working toward can provide motivation and clarity. I do this with individuals and teams to increase desire, uncover risks, and create alignment. The richer the descriptions you can use, the more impactful and valuable the process becomes.

4. Reflecting

Sometimes you need time to sit and recall what happened in a given situation and how you felt about it. Reflecting on an event and writing down specific details about what happened allows you to better see what actually happened. By recalling your emotional reactions, you can map how these things impacted and affected you. The key here is to separate what happened from the meaning you gave it. This practice allows you to see your subconscious at work so you can better prepare and handle these types of situations in the future.

5. Dumping

When you're overwhelmed and your mind is racing, or you just can't let something go and it's nagging you, dumping is a great technique. The focus here is to write anything and everything down that comes to mind as quickly as you can. Generally, I suggest 15-20 minutes to get the full effect. Set a time and just start writing, don't stop, and don't worry about spelling or grammar or even readability. The point here is to empty your mind. Don't overthink it. After the timer goes off, take a minute to relax. If you want, go back and see if there are any nuggets of ideas or action items, but you can just move on as well. The point here is to flush your mind of thoughts, not to process or analyze.

Many executives have made journaling a core personal practice and have written daily and created hundreds, even thousands, of entries, giving them a treasure trove of insights. If you're serious about your improvement and development as a leader, I highly recommend incorporating journaling into your daily routine.

5 Ways to Level Up Your Team Retreat and Create More Impact

There are lots of ways a retreat can go wrong. Here's how to do it right.

As a strategic leadership coach, I’ve conducted hundreds of team and leadership retreats for dozens of companies. I love the retreat format as it gets people out of their day-to-day environments, gets them thinking and interacting in new and different ways, and gives them the time and space to go deeper than they normally can. The best retreats are held in inspiring places, taking advantage of local activities and culture to fuel the team with increased motivation, new perspectives, and stimulating adventures.

However, I’ve often witnessed retreats falling flat. Sometimes, it was because the planning wasn’t done properly, other times because the team just couldn’t stay on topic and complete their agenda, and occasionally because teams didn’t go deep enough to truly resolve their issues.

Here are five key ways to avoid these pitfalls and to increase your likelihood of success and the impact of the time and energy you and your team invest in your next retreat.

1. Set clear objectives and success criteria

Before you start planning your retreat, ensure you establish clear objectives and success criteria. This includes the key issues, topics, and decisions that need to be made and a clear and specific set of outcomes that you want to achieve by the end of the program.

The best retreats maintain a clear focus. My suggestion is to address 3-5 significant issues deeply rather than skimming through a long list on a surface level. Choose high-impact and complex items that can benefit from in-depth discussions. Clearly define the scope of the discussion, along with the desired outcomes and decisions that need to come out of the meeting.

2. Get buy-in on the agenda

Too often, I see leaders come into a retreat with a meticulously crafted agenda, only to discover at the beginning of the meeting that everyone else in the room wants to talk about other issues. Leaders then face the dilemma of pushing their agenda forcefully or abandoning their plans and making it up on the spot. This can be avoided by engaging with your team beforehand and discussing open issues/topics they want to address.

3. Establish good ground rules

Even the best teams fall into bad meeting habits and have tendencies to get carried away and chase issues down rabbit holes. Retreats are a significant investment in time, energy, and money that should be used wisely. One of the best ways to keep things on track is to create and agree upon a clear set of ground rules for how you are going to conduct yourselves.

Effective ground rules should cover topics such as confidentiality, conflict resolution, ensuring everyone has a chance to speak, and maintaining focus on solutions (rather than blame). I also like to ensure that everyone has a clear role in the retreat so the workload is shared and people stay engaged.

4. Push out of your comfort zone

A successful retreat uses the unique space and extra time to delve deeper into issues. This often entails exploring potentially uncomfortable and contentious topics. But it’s in these difficult conversations where real change and breakthroughs can occur. Be willing to enter the danger and tackle issues that seem scary. A well-defined set of ground rules and an experienced facilitator can make this process much easier and more productive while reducing the risk that things spiral.

5. Commit to clear action items

All the discussions and ideas in the world are futile if they don’t translate into action. Ensure that you’re capturing actions and commitments as you go. For ideas or topics that are unresolved or need more discussion, put them in the parking lot for review at the end of the retreat. Close the retreat with a detailed recap of who is responsible for what and by when. I also suggest you have a follow-up call a week later to confirm that people are executing their commitments.

Retreats are a powerful tool for any team. They are a big investment, but they often lead to major insights and breakthroughs that can yield significant returns. Use these suggestions to maximize your chances of success and quality of outcomes. Great teams make retreats more than a boondoggle, they use them strategically to drive growth and change.