There are as many approaches to growth as there are small businesses.
Every agency is different.
But not all business mindsets are the same. Some are more growth-oriented than others.
Contrasting 2 Mindsets Over 25 Years
Let’s start with a few assumptions:
- You want to make money today.
- You plan to be in business for a long time–perhaps 25 years or so..
- You want to make more money in the future.
Most agents agree with those statements. They don’t all have the same mindset for getting there.
Two competing mindsets are these:
Mindset 1: A 25-year growth mindset.
Mindset 2: A 1-year growth mindset repeated 25 times.
They couldn’t be more different. Here are some of the contrasts:
1: Base your business on a vision and strategy.
2: Base your business on tactics.
1: Measure growth by increase in profits over time.
2: Measure growth based on monthly sales numbers.
1: Compete with yourself.
2: Mimic your competitors.
1: Focus on your Ideal Customer Profile.
2: Take any business you can get.
1: Track baseline-level growth metrics.
2: Track vanity metrics and short-term sales metrics.
1: Prioritize leading indicators.
2: React to lagging indicators.
1: Minimize customer and employee churn.
2: Only emphasize new customer acquisition.
Why It Matters.
You know intuitively that you need to think longer-term about your business. You probably have some anxiety about it.
You hate running in the hamster wheel.
But here’s a refined description of why a 25-year mindset is more powerful than a 1-year growth mindset repeated 25 times.
You already know how compounding works with dollars over time. Making a series of good decisions over the long-term results in non-linear growth.
The same thing is true of effort: if you apply it in a way that periodically raises your baseline, you end up with a far better business over time.
Repetitively pursuing short-term tactics doesn’t provide you with interest on your effort. It’s like keeping your money under the mattress.
When you need to move something heavy, you grab a lever. And you’re on the long end.
Your downward effort will lift more weight with a lever.
A long-term mindset focuses on activities that provide better than a 1:1 return on effort. It informs things like:
- How you recruit and deploy talent.
- What kind of customers you pursue.
- The development of and eventual supremacy in a niche.
- Focus on growing net margin and reinvestment, not just sales numbers and revenue.
Compounding and leverage are essential for exponential growth.
When you repeat a 1-year growth mindset 25 times, you don’t do the things that will really scale your business. You stay in the grind, running in the hamster wheel indefinitely.
The way out is to start thinking long-term. You don’t have to lay out a plan for 25 years, but you do need a vision that looks out that far. And a strategy or approach that looks out at least 3-5 years.
If you need help getting started, hit the reply button. I’d be happy to help you envision what it will take to get you there.