You need a clear picture of what you want your business to become. We call this Strategic Intent.

Did you know that 80% of new businesses fail in the first five years and that 80% of the remainder don’t make it to ten years? The outcome of these statistics? A 96% failure rate or a 4% success rate. Scary, right? But it’s a sad truth that most new businesses fail.

Given that all of those businesses were working in the same economic conditions and climate, what was it that the 4% had that the 96% didn’t? The 4% succeeded because of their mindset. They had a mindset about knowing where they’re going and then working out how to get there. That involves having a very clear strategic intent.

The art of building a sound business is 1/3 vision, 1/3 strategy and 1/3 execution. Without the vision, the other two can’t happen. Without vision, how can you know what the strategy needs to be? You need a strategy and the strategy needs to work toward the vision. Without strategy, how does anyone know what needs to be done and how? The execution is the actual implementation of the work of the business and it needs to be done consistently and predictably.

Why is it important to have a strategic intent?

First of all, you need to know what you want your business to be. Once you know that, you can work out how you’re going to get there. You need a business that works for you, not the other way around. A business that serves you rather than you serving it. Without a clear picture, goals and milestones, you’re not going to get there. Remember, if nothing changes – nothing changes.

Think for a moment of a new house. The owner dreams it, the architect designs it and the builder builds it. Without the dream and the design, the house would never have happened. The dream could not become a reality. You, as the business owner, are all three of the personalities. You are the one that comes up with the idea and what it’s going to look like when it’s done. You’re the architect, the manager – the one who is going to work out the way it’s all going to happen. And in most small and start-up businesses, you’re also the builder, the one who does the work to make it happen.

Strategic intent is not so much about where you want your business to go. It is about what you want it to become.

When you’re clear about that, you can make the decisions that guide the development and growth. An important thing to remember about strategic intent is that you need to see your business as separate from you. Do not think of it as part of you. Think about your business as something that stands on its own two feet. Use the name of the business, say “we” instead of “I” and start thinking like a million dollar business owner. Think of what a million dollar business owner would do in this position, or how would they handle this situation. Think about what your perfect business is going to look like.

Be very clear about what your business does for its clients, staff and for you. Also, be clear about how it’s going to stand apart from its competition.

An important thing to remember at this stage is to not think about how it’s going to happen. Think about what it’s going to be, what it’s going to look like. Right now, just focus on what it’s going to be. Silence that “how” voice. Tell it to take a rest. Just because you don’t know right now how something might happen doesn’t matter. At this stage, it’s the what that matters.

This is a business that should serve you. It’s not the other way around. Be clear on your personal goals and the difference you want to make. If you’re clear about your personal goals, then you can create a business that will help you achieve them.

Next week, I will discuss the five elements of Strategic Intent.

Until then…

P.S. Learn more about working ON your business–talk to the coach!
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