From time to time, it's helpful to step back from your day-to-day work and look at the big picture.
Let's do that now by thinking about your long-term view of financial success.
Eliyahu M. Goldratt wrote The Goal: A Process of Ongoing Improvement back in 1984. It is a fantastic management book (written as a novel). It is been revised and republished a number of times because it is a favorite in the business world.
He also wrote a book, The Haystack Syndrome: Sifting Information Out of the Data Ocean, where he talks about the importance of seeing the bigger picture view of what you are trying to achieve with your company.
"Probably the most fundamental question we can ask is "Why is an organization built?" to start with. I don't believe that any organization has been built merely for its own existence. Every organization was built to achieve a purpose."
What is the purpose/goal of your company?
Take a minute to think about that question. Then write down your answer.
Goldratt goes on to say:
"The goal of a company is solely in the hands of its owners. So the question "What is the goal of the enterprise?" is exactly equivalent to the question "Why did the shareholders invest their money in the enterprise?" In order to achieve what?"
Now we get to the fun part. $ J $ J $
Here's two questions to consider:
- Why did you invest money (and blood, sweat and tears) in your company?
- In order to achieve what financially?
To me, financial success means having money.
And to have money you need to make money. Then you need to invest the excess wisely so your money continues to grow.
It's as simple, and as challenging, as that.
Creating a Strong Net Worth
The path to "having money" is to create a strong net worth. Both personally and in your business.
So the big picture you want to consider is how big a net worth are you are trying to create?
Do you want a net worth of:
- … or more?
Taking a few minutes to consider how you define financial success won't necessarily change what you focus on tomorrow.
But it will give you a clearer sense of where you want to take your company. And it might change the way you manage the financial side of your business.
What are you trying to achieve financially?
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