The DiLauro Dossiers

Chance are, if you’re self-employed, March 31 marked the end of your first quarter.
You might wonder, “Yeah, so what?”
So this…

Your number
If you took me up on my suggestion (the one I made in January; the one you’ll find right here) you’ll have established a number.
By the way, and sorry if this is more obvious than the nose on my face (with that nose, I smell real good), but your number? Well it isn’t a sure-fire wager you’ll be placing with your local bookie.

***tangent alert*** You know I don’t even know, but, bookies… Do they even exist anymore or have they gone the way of the milkman, the blacksmith and the plain-talking politician? Which reminds me. We had a milkman once. Back in the eighties I think it was. Blacksmiths and plain-talking politicians? I can’t recall seeing many of those… ***end of tangent alert***

So, what is this “number” thing?
OK, ignore all that stuff about politicians and milkmen alright? I just threw that in to show you that accountants know how to be funny too (yeah, okay, I know, don’t quit the day job).
So, what then does the number mean?
Your number is, in fact, a financial commitment typified by a revenue forecast.
And what that means is, your number represents the amount you are planning to bill this year.
That’s it. Plain and simple. No budgets. No pro-formas. No balance sheets. No waiting.
One number. That’s all you need.
And now, given the quarter—Q1—has come and gone, it’s time for a quick and easy spot-check. A casual, yet crucial, approximation, in fact.
Here’s all you need to do.

The Preview
Add up your actual Q1 billings, and then multiply that amount by 4. Let’s call the result of that mathematical exercise your Q1 preview.
Now, compare the Q1 preview to your number.
What did you get?  Is the Q1 preview greater than the number?
It is?
Hey, that’s great!
Don’t just stand there, go ahead, pat yourself on the back. Because what that means is you’re ahead of forecast.
What if, however, your Q1 preview lags behind the number?
No worries. It’s OK. Really.
You’ve still got another three quarters to make up the difference.

The fine print
One other thing, however you fared, remember this.
The calculation you used to arrive at the preview makes one major—one heroic—assumption.
It assumes that your business isn’t cyclical, and that all sales occur equally throughout the year.
Like I said; an heroic assumption
And that’s why the end of Q1 (if you’re ahead of forecast) is not the time to be breaking out the bubbly and perusing colour options for a new Jaguar. (Yeah, go ahead, call me a killjoy).
At the same time, if you’re behind forecast, don’t be getting down-in-the-mouth and thinking about crawling out to the edge of the ledge either.
Here’s why…

Here’s the thing (and it’s an important thing)
While it might seem you’re monitoring progress—which, in a sense, you are.
What’s really happening is, you’re focusing the mind and refreshing the reminder you set back in January–the one about your financial target.
And, well, you know… targets?

They’re a good thing.

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You remember the holodeck, right?
Of course you remember it. Any self respecting Star Trek fan remembers the holodeck.
For the uninitiated, then, here’s an, admittedly brief, primer.
A holodeck is—pretty much—your own personal room of dreams.
Uh?
Well, look at it this way.
Whatever you can think up, your holodeck will make it happen—in 3D, real-time, touchy-feely reality.
Want to drive a Formula 1 car?
Plug in the coordinates and before you know it, you’re strapped into a 200 MPH beast of speed and noise.
Want to sample the breakers off Papara Beach?
A quick twist of the dial and—next thing—you’re under your board, snorting salt water.
All that, and more, my friends, courtesy of a wonderful, mystical holodeck.
Now then, picture this conversation I had, a while back, with a client.

Client: “I can’t believe it. No matter what I try, I just can’t seem to get a break.”
Me: “What do you mean?”
Client: “What do I mean? Let me tell you what I mean. I mean I’m out there busting my chops, and  business either slips through my fingers, or the contracts I do get are nothing but trouble.”
Me: “Hmmmmm.”
Client: “And meantime, you think I’m making money? I’m not making money! I’m not getting ahead!
Me: “What about…?”
Client: “Not only that, but I’m spreading myself so thin, I’m starting to disappear! I’m serious about that too. I’m spinning so many plates right now, I can’t keep up. And all they do is crash on me.”
Me: “You want my two cents?”
Client: “Why do you think I called?”
Me: “I think you haven’t set the coordinates on your holodeck.”
Client: “Whattttt?”
Me: “You know? From Star Trek? The holodeck?”
Client: “I know what a holodeck is.”
Me: “You said it yourself. You’re going off, scatter-shot, in a hundred directions.
Client: “So?”
Me: “So… All you need is to walk into that holodeck and dial-in a coordinate. Just one. Tell it where, exactly, you want your business to go.”
Client: “Hmmm, tell my holodeck where I want to go?”
Me: “Look. Your company’s the USS Enterprise, and that holodeck’s you’re business plan. Until you decide where you’re going, you’ll always be engaged in a flurry of unfocused activity. A sort of holodeck with garbled coordinates.”
Client: “What you’re saying is I have no clear objectives—I’m scattered?”
Me: “Yeah, it’s partly that. But by calling it a holodeck, it’s also putting the onus squarely on you. In other words, even though others can give you advice, you’re ultimately the one programming that damn thing.”
Client: “I see…”
Me: “Bottom line? It’s you and no one else.”
Client: “OK, I got it. It’s time I stop being all things to all people. It’s time I inform my clients what it is I do and don’t do.”
Me: “If you say so. It is, after all, your holodeck. But my thought is, if the current experience isn’t working out, hey, just change the coordinates.”
Client: “Change the coordinates, uh? Yeah, I like that.”
Me: “I’m glad you do.”
Client: “So… um… How much am I paying you anyway?”
Me: “Not nearly enough.”

What about you? How do you ensure that you have a clear vision for your business? Please share your ideas here by posting a comment.

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Let’s face it. You hate budgeting, I hate budgeting.
What it comes down to, I guess, is… no-one likes budgeting.
But here we are, oh-so-early in a brand new year.
With twelve months ahead of us, and the following question just hanging there…
What, exactly, are we going to accomplish this year?

No, not the B word
Well, in a prior post, I gave you one suggestion—the one about debt.
And if you tackle that task (and only that task) I will applaud you.
But, if you’re game for another test.
If you’d like to—kinda—up the ante.
Then let me throw this at you.
It’s a financial target. A hard and fast number.
No, no! Please don’t turn away.
Because, what I’m suggesting isn’t about budgeting.
Really, it’s not.

The number
It’s more—sort of—like a target. A target consisting of one number.
That’s it. Honest. Just one number.
Still there?
Great!
OK then, here goes.
What I’d like you to do is this. Grab a quiet seat. Churn up a few (and only a few) brain cells and think about your business. Think about the coming year and think, too, about what’s possible, what’s achievable, and what’s very desirable.
Now write down a number. Only one number.
What that number represents is your revenue—your sales target—for the year.
Write it down so you see it every day.

Guess what
Then, next December, take your actual sales, and compare it to that number.
What you might find is you hit your target.
Yep. You may find exactly that.
I know, for some, it sounds fanciful.
But you know what?
It works.
I know it does. I know it from experience—both my own and those I have recommended this little tactic to.
Now some might want to get into all kinds of philosophical theories (about self actualization, and autopoiesis,  and maybe, even, attraction) about why it works.
But you don’t need to know all that. In fact, I’ll spare you all that.

A simple plan
Because, at it’s simplest, what I’m talking about is a plan. What I’m also talking about is most people (business owners, professionals, managers) never find time to plan.
Why not?
Because most people view a plan as complex, time-consuming… and as something involving budgets (yechh).
That’s why I’m recommending my one-number plan—my simple plan (hey wasn’t that an 80s rock band?).
And believe me, a simple plan is way better—infinitely better—than no plan at all.

Fiddle-free
Because, the fact is… everyone needs a target. One that’s simple and quantifiable, and one that (unlike, at times, budgeting) is un-fudge-able.
And so… there you go. Budgeting isn’t your thing, we know that (hell, is it anyone’s thing?).
With that in mind, just aim at a target—aim for that one magic number.
OK?
Great!
Now go for it. And remember, in December, to let me know…

Whether you got a bulls-eye.

What do you think? Is it important to have one number, one target to aim for? And, if you’re not self-employed, should you also have one financial target? An amount to salt away for a rainy day, maybe? Let me know by leaving a comment.

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I have an invitation for you. But first, the backstory;

The two most read posts on this blog describe Why You Don’t Want Customers and why It’s Not About the Money.
Those posts still attract a steady stream of traffic, maybe because they take a different and somewhat original stance about commonly-held beliefs—of money and of customers. Or, maybe it’s because they trigger a moment of discovery and self-awareness. You know what I mean, right?  One of those Ah Ah moments?

But, let me tell you (and here comes the invitation)…
As much as I enjoy writing these posts, I truly love sitting ‘round a table, sipping coffee (or tea) and engaging in a lively, fun and meaningful discussion with open-minded individuals.
It makes for an interesting chat… Ideas spring forth, laughs abound, ineffective habits are unearthed, and seeds for new (and better) strategies are planted.
Like I said; an interesting chat.

With that in mind, I’m inviting you to a half-day (8:30 ‘till noon) event right here in Ottawa on January 28, that explores new concepts about money, about customers, and about your business or career. Based on concepts  derived from leading thinkers like Daniel Gilbert, Richard Easterlin and, among others, Steve Jobs, the morning will prove both productive and fun.
And so, please join us, on January 28. I look forward to seeing you there.

To register for the event, just click here. To see more details, visit this link.

Thank you and see you soon.

Now I know many reading this aren’t anywhere near Ottawa, but if you’re interested in a virtual meeting  via, say, a webinar please do let me know. I’d be happy to set something up for later this winter.

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