Having a Business or an Expensive Hobby: Ask Yourself These Questions
Many people think that they have a prosperous business when in the real sense they only have an expensive hobby.…
Many people think that they have a prosperous business when in the real sense they only have an expensive hobby. If you want to know whether you have a business or an expensive hobby, ask yourself the following questions:
- Do you have a three-year plan for your business?
- Do you have a clear financial goal for this year which is written down?
- Have you shared your financial goals with your teams/partners?
- Do you know who your ideal clients are, is this written down?
- Do you know what success looks like for your business?
- Do you have the roles and responsibilities for you and your team clearly defined?
- Do you spend more than 50% of your time on the business?
- Do you delegate your administration work?
- Do you review how the business is doing against the plan with your team each week/month?
- Do you have clear targets for each member of your team?
- Do you have a clear list of products and services which are easy to understand?
- Do you have a clear and consistent pricing strategy for new, repeat and referred customers?
- Do you know how many products/services you need to sell each month/week/day to meet your financial targets?
- Do you have a simple value proposition which you can explain to your customers in one sentence?
- Do you know which sales channels your ideal clients use?
- Do you know the cost of sale for each product/service?
- Do you know the gross margin per product/service?
- Do you know the net profit per product/service?
- Do you know where you are against your targets right now?
- Do you track the progress of your business against the target monthly/weekly?
If you answered 80 percent of the questions, you are running a business and if not, my friend, you are running an expensive hobby.