When I give a speech, I often ask the audience, “If you had to choose just one word that is critical to the success of a business, what would that word be?”
Usually, the audience responses include the words, motivation, planning and innovation. These words do have an impact on the success of a business. However, the most important word we choose is momentum.
If you recall from your physics class, momentum = mass X velocity.
In business, mass is comprised of the capabilities and resources available to the business. Typical, this includes people, capital, and technology.
Velocity is the rate at which you leverage your people, capital, and technology. You may also recall that velocity is more than just rate. While velocity and speed both share rate, only velocity has direction.
Choosing the direction in which your business will go, and controlling the rate at which you will grow, are fundamental elements in the sustainability of your business.
What does it take to create and sustain momentum in your business?
A friend and mentor of mine, George Land, wrote a classic book, Grow or Die. In his book, Land states that everything in Nature is programed to grow. As human beings, we are genetically designed to grow. Yet, the paradox is that the fastest growing cell in the human body is a cancer cell, something that causes death.
We tend to associate success in business with growth. But if we grow too fast, that can lead to organizational death.
In our work with entrepreneurs and business leaders, we focus on finding for them, the right pattern of growth in their work and lives.
With most of our clients, the starting point is to raise the level of their gaze. Most entrepreneurs focus too close in. They are concerned with the momentum in their business over the next week, month, quarter, or year.
High performing entrepreneurs play the Long Game. They are focused on creating sustainable momentum over the next five to ten years and beyond.
To find the right pattern of growth over the next five to ten years and beyond, we focus on Four Cornerstones of building a business.
Strategy
Structure
Systems & Processes
Financial Management
We define strategy as the alignment of outputs/objectives, capabilities, and resources, and the opportunities and challenges the environment provides.
The business plan is the articulation of the entrepreneur’s strategy for building the business. Given that outputs/objectives, capabilities, and resources, and the opportunities and challenges the environment provides are constantly evolving, ongoing business planning is critical to creating and sustaining momentum in your business.
Structure is the system of roles, role relationships & strategies that define accountability and authority. Having the right people, in the right roles doing the right things is critical to success and the ongoing sustainability of your business. Too often, entrepreneurs hire people based upon relationship, rather than fit for the role.
Systems and processes enable the entrepreneur to execute the strategy. A system is defined as a detailed set of methods, procedures and routines created to carry out a task, perform a duty or complete an action (Source: Dictionary.com). A system is a bundling of processes. We define a process as a pattern or methodology that is repeatable, transferable and distinguishable.
Financial Management is critical to the ongoing health and vitality of the business. Financial statements are the vital life signs that tell you how your business is doing. There are two basic models for financial statements. The first is historical. The second is future, or pro-forma. Pro-forma statements are plans for the future, outlining your income, expense and profit objectives for the next one and five years.
The Covenant Group’s Coach on the Go (COG) platform enables entrepreneurs to design the business that is right for them. Coach on the Go integrates strategy and execution. The systems and processes in COG enable the entrepreneur to align outputs/objectives, capabilities, and resources to take advantage of the opportunities and challenges the environment provides.
Helping entrepreneurs thrive is at the core of everything we do at The Covenant Group. Our coaching, educational workshops, peer-to-peer interaction and Coach on the Go (COG) provide entrepreneurs with the right design for their business. This enables entrepreneurs, business leaders and their teams to leverage systems and processes that drive revenue and measurable results.
Whether the entrepreneur is a business of one, or of many, we focus on what matters, so you can attain what matters – a successful business, a powerful legacy, fulfillment for yourself and the people you care about.
If you want to get serious about focusing on strategically building and growing your business, sign up for our upcoming Business Builder Playbook program cohort. When you join, you get access to a peer-to-peer coaching program that gives you a roadmap to grow your business and achieve and sustain peak performance.
