It’s easy to get caught up in the day-to-day running of your business, but by looking ahead you’ll gain valuable insights that can help get you to where you want to be. And it starts with thinking smarter, according to entrepreneur and business owner, James Sinclair.
In the first of our series of 12 Business Masterclass videos hosted by James, he explains how he transformed his entertainment business from a profitable job into a commercially-profitable enterprise by taking a long-term view that allowed him to move up what he calls the “entrepreneurs' pyramid”.
According to recent data from Companies House, almost three quarters (72.1%) of UK businesses have existed for less than 10 years, so it’s important to have the knowledge, and the belief, to reach that milestone [1].
As James says in the video: “Most people overestimate what they can achieve in a year but underestimate what can be achieved in 10 years.”
Future-focused for long-term success
James recommends finding a quiet place, sitting down with a pen and paper, and granting "yourself the luxury of thinking into the future” using his 10-year approach to building a long-term business plan.
For example, you may know what profit you want to make at the end of your first year of trading, but what about at the end of your tenth year? And how much revenue will you need to generate to achieve these profits?
James explains that understanding your business’s cashflow is key to long-term success and underlines the importance of equipping yourself with the tools to make accurate long-term business projections, such as developing a revenue forecast.
Financial goals aside, keep watching to discover why the team you need in your first year will look very different to the team you’ll need in your tenth year, but the goal should always be to keep everyone inspired and informed. That’s why you must identify your business’s culture – so add it to the list of crucial questions to ask yourself as a small business owner.
Finally, turn your gaze inward and embrace a positive leadership style as you think about who you need to be and what you need to do to take your business from surviving to thriving.
“Great people want to work for great people, so upskilling and being the best version of yourself is what every business owner or entrepreneur should do,” says James.
Watch more of James Sinclair’s Business Class videos here.
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