Bridging the Gap from Employee to Entrepreneur

Today we are going to talk about getting from where you are now to that ideal place you envisioned yesterday.

But first, I want to share with you a great Vision/Purpose/Mission statement I ran across yesterday on the flyleaf of a book by Michael Gerber, best-selling author of The E-Myth series.

Michael’s Dream: to inspire people to dream by awakening the entrepreneur within them.

Michael’s Vision: to be the authority for helping dreamers everywhere create the small businesses they once could only imagine.

Michael’s Purpose: to transform the lives of ordinary people by providing them with the thrill of creation while creating the means to generate their own and others’ economic freedom.

Michael’s Mission: to create a turnkey system for awakening the entrepreneur within every person who wishes to go into business for themselves, while providing them with the support for doing it.

Now, that’s not the same old, tired, worn-out corporate mission statement. If yours doesn’t sing like Michael’s, keep working on it until it does! And you might want to read Michael’s book for inspiration. I’ve given you the link in the resources section below.

So, back to today’s work. How are you going to get from where you are today to the BHAG you envisioned yesterday?

This process is sometimes referred to as a “gap analysis.” Let’s say you want to achieve $100,000 of gross revenues in the next year. Assuming this is a brand new business, your gross revenue gap would be $100,000.

You need to do a gap analysis for each of the goals that is most important to you. They could include:

revenues, profits, cash flow and other income measures
expenses, payables, debt and other expense measures
number of customers or clients
number of products or services you sell
number of employees, franchisees, or people in your downline
how much time you spend working
how much vacation time you take, and so on

Put two numbers next to each of your important goals: where you are now and where you want to be in one year. The difference is your gap for that category.

The next step is to create a plan for bridging the gap. For example, to bridge the gap between $0 in revenues and $100,000 in revenues, you need to create a revenue plan.

Creating a revenue plan is not as hard as it sounds. Simply list all the products and services that you plan to provide. Multiply each one by the price, then by how many units you expect to sell in the next year.

If you’re lucky, you will have the rights products and services, at the right prices, and in the right volume to achieve your goal. But if not, you’ll have to tinker with one or more parts of the equation.

For example, let’s go back to our fly fisherman. His main interest is in selling unique flies. Since they are individually designed and hand-tied, he can command a good price–let’s say $10. By the way, you’d be amazed how many fly fishing sites there are on the net. I surfed to do my research for this post, and couldn’t believe my eyes:-)

So, how many flies would he have to sell to reach his $100,000 revenue goal? You got it, a cool 10,000 flies! Now, that’s not likely to happen, so what can our fisherman do to change the equation?

Basically, there are three possibilities:

He could tinker with the price of the flies…but based on my research, $10 is pretty close to the top of the line.
He could try to figure out how to sell more flies, but judging by the competition that would not be a realistic strategy.
He could figure out related products and services to bundle together with his flies, and increase revenues that way.

Strategy #3 sounds line the winner for this particular business, and virtually every fly fishing website on the net does exactly that. Some offer a full range of fishing products…rods, reels, tackle boxes, waders, and the like. Others offer guided fly fishing tours. Still others offer classes in fly fishing or tying your own flies.

Once you have the equation right, all you have to do is monitor it to make sure you are staying on track with your goals.

Another way to think about this is to organize your goals into 3 levels:

Strategies: the big picture ideas of how you are going to execute your vision. For our fisherman, one key strategy would be to diversity his income stream.
Objectives: tactical ideas about how to execute the strategies. For example, how to source additional products and develop an attractive package.
Actions: specific steps that have to be taken to successfully reach your objectives. For example, call potential wholesalers who have products to sell.

Okay, now it is your turn.

First, write down each of your overarching goals.
Now, figure out the gap between where you are now and where you want to be.
Next, figure out a strategy (like the revenue plan) for getting from here to there.
Finally, write down your tactics for achieving the strategy. Under each tactic, write down specific action steps that you must take…with deadlines and who will be responsible for each one.

This step is a lot of work…and one many new businesses don’t complete. That is a big mistake!

If you were taking a trip cross the country, you wouldn’t dream of leaving the house without a map, or mapquest directions, or a good GPS system. Sure, you could just start driving West and hope for the best…but you would never know exactly where you were going or how you were going to get there.

The same is true for your business. Create your roadmap, and you will always be able to tell if you are staying on course. If you miss a turn, you will be able to make the necessary adjustments. And by the end of the year, you will have a much better chance of meeting your goals.

Recommended Readings and Resources