Wednesday, June 19, 2013

Three Lessons for New Businesses and Nonprofits

1. Plans must be dynamic to be useful. They must adapt to changing conditions. Plans don't have to be complicated to be useful. Operating a business or nonprofit without a plan is like driving without a destination. Some routes may take more time, but there can be practical reasons for taking another route. The important lessons are to avoid getting lost, running out of resources or getting there after the party is over.

2. Keeping goals small and achievable builds confidence. There is nothing wrong with lofty goals or high ideals. Getting from A to B is like playing the piano. Before you become a concert pianist, you have to learn middle C. The goal may be Carnegie hall, but milstones are necessary to measure progress to get from A to B.

3. Think of an evaluation process like breathing. It is an ongoing process. Without breath systems deteriorate rapidly. Evaluations can be simple. They start with understanding the big picture, setting achievable and measureable goals and completing them within a prescribed time frame. It is often helpful to implement plans in stages. Failure to meet a goal on tme does not usually doom a business or nonprofit. It provides an opportunity to learn and make realistic adjustments.

When business owners or visionaries of nonprofits get discouraged it may be due to a lack of vision or resources. If progress is slow or there is a setback it is often because the entity got too far off track before making corrections.

The psychology of business is similar to losing weight. Having a temporary setback does not have to lead to a downward spiral. Left unchecked small problems can lead to a free fall. The remedy is to evaluate progress frequently and make small corrections to keep plans on track. Even small successes are worth celebrating. Whether it is a kind word of affirmation, a monthly meeting or an annual event, recognize teams, volunteers, vendors and anyone else who played a role in the success.

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