Daniel G. Taylor

Raising young men from adversity to prosperity through business

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The Entrepreneur’s Guide to Setting Powerful Long-Term Goals for Your Company

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Estimated reading time: 6 minutes


Today, we’re tackling a topic that can make or break your business: long-term goals. I’ve witnessed countless companies stumble because they lacked a clear vision for the future. But don’t worry! I’m here to walk you through the process of setting effective long-term goals that will guide your company towards success.

young male entrepreneur looks out the window thinking about the long term goals of his company

Table of contents

Key Takeaways

  • Long-term goals provide clarity, direction, and motivation for your business
  • Set goals in four key areas: product/service delivery, sales and marketing, financial, and community contribution
  • Make your goals specific, measurable, achievable, relevant, and time-bound (SMART)
  • Break long-term goals into smaller, short-term goals
  • Regularly review and adjust your goals as your business evolves

Why Long-Term Goals Matter


Running a business can be overwhelming, and it’s easy to get caught up in the daily grind and lose sight of the bigger picture. That’s where long-term goals come in. They give your work purpose, help you make informed decisions, and provide daily motivation. Long-term goals also help you spot meaningful trends and shift your business from reactive to proactive mode.

Setting Goals in Four Key Areas

To set your company up for long-term success, you need to focus on four crucial areas:

#1) Product or Service Delivery

Your product or service is the heart of your business. Set goals that focus on improving quality, expanding your offerings, and staying ahead of the competition. For example, aim to launch a new product or service that fills a gap in the market and solves a problem for your target audience.

When I had a private consultation with my mentor, Dr John Demartini, he advised releasing a new product or service every 90 days.

#2) Sales and Marketing

Without effective sales and marketing strategies, even the best products and services will go unnoticed. Set goals that focus on increasing revenue, building brand recognition, and growing your customer base. For example, aim to increase sales by a specific percentage over the next few years or become the go-to brand in your niche.

#3) Financial

Money keeps the business world turning. Set financial goals that focus on increasing profit margins, reducing expenses, and improving cash flow. For example, aim to become the leader in your specific market niche or expand your company by opening more locations.

#4) Community Contribution


Giving back to the community not only makes the world a better place but also builds goodwill for your brand. Set goals that focus on making a positive impact in your local or global community. For example, aim to create a successful non-profit organization that aligns with your company’s values or partner with local charities to make a difference.

Making Your Goals SMART


When setting your long-term goals, ensure they are SMART: Specific, Measurable, Achievable, Relevant, and Time-bound. This means avoiding generic goals and being specific about your target audience and niche. Use simple language, and make sure your goals are memorable and easy to understand.

For example, instead of setting a vague goal like “increase sales,” set a SMART goal like “increase sales by 25% over the next 3 years by expanding into new markets and launching a targeted marketing campaign.”

Breaking Down Long-Term Goals

Long-term goals can seem daunting, but breaking them down into smaller, short-term goals makes them more manageable. These short-term goals act as stepping stones towards your larger objectives.

For example, if your long-term goal is to open a new location, your short-term goals might include:

By focusing on these smaller goals, you’ll make steady progress towards your long-term objectives.

Achieving Your Goals

Now that you’ve set your long-term goals and broken them down into manageable steps, it’s time to make them a reality. Use a strategic plan as a roadmap, with your vision as the destination, long-term goals as milestones, and short-term goals as the odometer. Track your progress regularly and make adjustments as needed to stay on course.

Remember, achieving long-term goals requires persistence, flexibility, and a willingness to learn from setbacks. Celebrate your wins along the way and use them as motivation to keep pushing forward.

Conclusion

Setting powerful long-term goals is essential for any business owner who wants to achieve lasting success. By focusing on product/service delivery, sales and marketing, financial, and community contribution, you can create a roadmap for growth and impact. Remember to make your goals SMART, break them down into manageable steps, and regularly review and adjust them as your business evolves. With clear long-term goals in place and a commitment to achieving them, you’ll be well on your way to building the business of your dreams.

Action Steps

  1. Set aside dedicated time to brainstorm and write your long-term goals for each key area: product/service delivery, sales and marketing, financial, and community contribution.
  2. Ensure your goals are SMART: Specific, Measurable, Achievable, Relevant, and Time-bound.
  3. Break your long-term goals down into smaller, short-term goals you can work on over the next few months or years.
  4. Create a strategic plan that outlines how you will achieve your goals and track your progress regularly.
  5. Review and adjust your goals as needed to ensure they remain relevant and achievable as your business grows and changes.
  6. Celebrate your milestones and use them as motivation to keep working towards your long-term objectives.
  7. Surround yourself with a supportive network of mentors, peers, and experts who can offer guidance and accountability as you work towards your goals.

Frequently Asked Questions

What is the long-term goal of a company?

The long-term goal of a company is to achieve sustained success and growth over an extended period, typically 3-5 years or more. This could mean dominating your market category, building a strong brand reputation, creating a positive company culture, or making a significant impact in your community. The specific long-term goals will vary depending on the company’s vision, values, and industry, but they should all work together to guide the business towards a thriving future. Effective long-term goals provide clarity, direction, and purpose for every member of the organization, from entry-level employees to top executives. By setting and working towards these goals, companies can make strategic decisions, allocate resources effectively, and adapt to changing market conditions while staying true to their core mission. Ultimately, the long-term goal of any company should be to create value for its stakeholders – customers, employees, shareholders, and the wider community – in a sustainable and meaningful way.

Starting Strong: Your Guide to Business — Where to Start Essentials

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Estimated reading time: 17 minutes

Struggling with where to begin your business journey? Starting a business involves critical early choices, and this guide aims at simplifying them. Learn about determining your business structure, writing a solid business plan, and navigating initial legal requirements—all designed to position your new venture for success. We focus on key areas so you can swiftly move from planning to action, ensuring you’re well-equipped to tackle your “business where to start” first phase.

Table of contents

Key Takeaways

  • Selecting the right business structure is business 101; consider personal liability and taxes before getting too cozy with any one format.

  • A solid business plan isn’t just corporate hoops; it’s your roadmap, complete with financial projections and market analysis – forget the crystal ball, this is your real peek into the future!

  • Know your legal pad from your iPad: Legal steps and insurance aren’t just red tape, they’re the cape that turns your startup hero invincible!

Deciphering the Best Business Structure for Your Venture

Choosing the right business structure is crucial for tax, liability, and financing considerations

Every successful business begins with a strong foundation, starting with the crucial decision of choosing the appropriate business structure. This decision isn’t just a formality; it can ultimately shape the trajectory of your venture. The business structure you choose influences everything from:

  • taxation

  • owner’s liability

  • administrative requirements

  • your ability to secure financing

You may be pondering, ‘So what options do I have?’ Well, many business owners typically have a choice between the following business structures:

  • Sole proprietorships

  • Partnerships

  • Limited liability companies (LLCs)

  • Corporations

Each structure has its pros and cons, and the right choice for your business will largely depend on your specific situation. For instance, if you’re a solo entrepreneur embarking on a low-risk venture, a sole proprietorship might be an apt choice. On the other hand, if you’re planning a tech startup and eyeing venture capital, a corporation might be your best bet.

Personal liability protection is a key aspect to consider. This varies significantly among different business entities and is crucial for protecting your personal assets against business-related risks. We shall now explore these business structures in more detail.

Sole Proprietorship Explained

Sole proprietorship stands as the most straightforward form of business ownership, perfectly suited for solo entrepreneurs embarking on minimal risk ventures. It’s the easiest structure to set up, requiring minimal paperwork. And for branding purposes, you can register a fictitious business name different from your legal name. Imagine being able to start a business under a catchy, memorable name without having to jump through legal hoops!

However, like everything else, sole proprietorships come with certain disadvantages. In this case, it’s personal liability. As a sole proprietor, you bear personal responsibility for any liabilities or debts the business incurs. This means that if your business finds itself in hot water, your personal assets could be on the line.

Forming an LLC

If the thought of personal liability for business debts leaves you uneasy, you might want to consider forming a Limited Liability Company (LLC). An LLC offers the following benefits:

  • Limits personal liability for business debts

  • Provides crucial protection for business owners

  • Acts as a shield that guards your personal assets against business-related risks

Aside from providing limited personal liability, an LLC also offers tax benefits that can be advantageous for small to medium-sized business owners. In essence, an LLC combines the simplicity of sole proprietorships with the liability protection of corporations, making it an attractive option for many entrepreneurs. However, remember that establishing an LLC involves following specific procedural steps to form the legal entity properly.

Incorporating Your Business

The process of establishing a company is what we refer to when we discuss business incorporation. This might sound like a big, scary step, and it can certainly seem that way, especially if you’re a small business owner. But, incorporating can bring a host of benefits, especially if you’re hoping to attract venture capital. In fact, startups eyeing venture capital should consider being taxed as a C corporation.

Corporations have the option to be taxed as a C-corp or an S-corp. Now, you’re probably thinking, “What’s the difference?” Well, small corporations might choose S-corp status for pass-through taxation benefits. This means the corporation itself doesn’t pay any federal income taxes, but the company’s income or losses are divided among and passed through to its shareholders. The shareholders then report the income or loss on their own individual income tax returns.

Crafting a Solid Business Plan

Crafting a Solid Business Plan is crucial for success

Having settled on your business structure, the next step involves devising a robust business plan. Think of your business plan as a comprehensive road map that guides each stage of starting and managing your business idea. It’s like having a GPS that helps you navigate the often winding and unpredictable road of entrepreneurship.

A comprehensive business plan should outline your business model, market research, marketing strategy, and projected financials. It should answer key questions such as: What is the purpose of the business? Who are the target customers? What are the end goals? How do you plan to cover the startup costs? Have you considered different financing options?

Remember, business plans can vary between a traditional, detail-rich format and a lean startup approach, which focuses on summarizing the key elements of the business. Regardless of the format you choose, a well-constructed business plan is often required by investors and business partners to assess potential returns.

Market Analysis and Target Customers

Market analysis forms an integral part of your business plan. This involves understanding industry trends, identifying gaps, and uncovering underserved audiences that could reveal lucrative opportunities. Imagine being able to spot a gap in the market before anyone else and position your business to fill that gap!

It’s also vital to identify your target customers. Understanding market size and demographic trends can help you tailor your products and marketing efforts precisely. Essentially, it’s about knowing who your ideal customer is, what they want, and how you can provide the solution they’re looking for.

Financial Projections and Funding

Your financial projections and funding strategy are other crucial elements of your business plan. This involves estimating your startup costs, determining your break-even point, and understanding your profit margins. It’s like being able to peek into the future and see when your business will start generating profit instead of merely covering costs.

Funding your business is another key consideration. You can seek financial support from various sources, including:

Approaching banks or alternative lenders with a solid business plan and financial history is the best way to secure a loan for a new business.

Crowdfunding presents an alternative funding option where capital is raised through a public campaign. Here, investors do not expect repayment, which can be beneficial for startups. Successful crowdfunding campaigns, such as those utilizing pre-orders, can demonstrate market demand and generate early business excitement.

Marketing and Sales Strategies

Marketing significantly contributes to your business’s success. A well-constructed marketing plan can help you reach your target audience and convert them into customers. Whether you’re running an online business or a brick-and-mortar store, having a solid marketing strategy is key.

One effective digital marketing strategy is email marketing. By sending promotional emails to potential customers, you can convert leads into customers, encourage repeat business, and incentivize loyal customers to buy more. Understanding marketing analytics is also vital for accurately tracking the performance of your marketing strategies and making better decisions to improve effectiveness.

Setting Up Your Business Finances

Setting Up Your Business Finances is essential for success

With your business plan in place, it’s now time to organize your business finances. This involves separating your personal and business transactions, understanding sales tax, and selecting efficient accounting software. It’s like setting the financial foundation of your business to ensure smooth operations.

Setting up a separate business bank account is crucial for maintaining professional credibility and tracking business expenses accurately. Plus, understanding when and how to charge sales tax is crucial for legal compliance. Finally, selecting the right accounting software can streamline tax preparation and filing, making your life as a business owner much easier.

The Importance of a Separate Business Bank Account

A separate business bank account enhances the professional image and credibility of a business. It’s like having a distinct wardrobe for your business that separates it from your personal life. Moreover, opening a business bank account is a crucial step in legally separating personal and business transactions, which is recommended for all new businesses.

Choosing the right bank for your business involves considering local market conditions and building a personal relationship with smaller community banks that have experience with small business owners. It’s like finding a trusted partner who understands your business needs and can provide the necessary support.

Navigating Sales Tax and Accounting Software

For legal compliance, it’s imperative to understand state and local taxes, including the collection of sales tax. This might sound complicated, but don’t worry, with the right knowledge and tools, you can navigate this process seamlessly.

Selecting efficient accounting software is key to streamlining tax preparation and filing. Accounting software can help you track inventory levels, manage orders and deliveries in real-time, and prevent stockouts and excess inventory. It’s like having a personal accountant who keeps an eye on your finances and ensures everything is in order.

Legal Steps to Officially Start Your Business are crucial

Let’s now discuss the legalities involved in officially starting your business. This involves:

  • Registering your business name

  • Filing Articles of Incorporation or Organization

  • Trademarking

  • Obtaining necessary licenses and permits

It’s like getting all your documents in order before embarking on a trip.

Registering your business name is a key legal step, which may also include filing Articles of Incorporation or Articles of Organization with the state to establish your legal entity. Trademarking your business name with the U.S. Patent and Trademark Office provides brand protection across all states where the business isn’t registered. To legally operate, businesses need to secure various licenses and permits, which can be obtained through local city halls or state government websites, depending on the industry and jurisdiction.

Registering Your Business Name and Entity

Before finalizing a business name, it is necessary to ensure the name is available by searching the state’s online database and contacting the state filing office. You also need to check with the USPTO for trademark availability. It’s like making sure the name you want for your newborn child is unique and doesn’t belong to anyone else in the family.

After choosing the business structure and name, it’s time to trademark the name, secure a domain, and create social media accounts. This helps establish a web presence and protects your brand. A business can be registered under various options: a legal name for formal recognition, a fictitious DBA name for operating under a different name, or a company name that reflects branding.

Acquiring Necessary Business Licenses and Permits

Obtaining the necessary business license, licenses, and permits is a crucial step to ensuring your own business operates legally. Businesses may need federal licenses if their activities are regulated by a federal agency and will require additional licenses depending on state or local regulations. For example, a landscaping business may need specific licensure depending on the state.

Employers must also register with state employment agencies for tax reporting and comply with new hire reporting requirements. It might seem like a lot to handle, but getting these legalities sorted from the beginning will save you from potential troubles down the line.

Protecting Your Business with Insurance

Protecting Your Business with Insurance is important for risk management

Starting a business is an exhilarating journey filled with risks. This is where the necessity for business insurance comes into play. To safeguard your business venture, it’s essential to have general liability insurance, professional liability insurance, and business interruption insurance.

Adequate insurance coverage can shield you from financial liabilities, offering peace of mind. It’s like having a safety net that catches you when unexpected events occur. Working with an insurance agent can help you determine the appropriate coverages for your specific needs and find the best rates from insurers.

Understanding General Liability Insurance

General liability insurance is like a superhero protecting your business from potential disasters. It covers medical expenses if a customer is injured at your business location or if bodily injury or property damage is caused by your business’s products or operations conducted elsewhere. It’s a must-have for any business, including home-based businesses or those without employees.

Having general liability insurance is not just about protecting your business; it’s also about maintaining your reputation. Imagine a customer gets injured at your business premise, and you’re unable to cover their medical expenses. Not only would this lead to financial strain, but it could also damage your reputation.

Selecting Professional Services Coverage

If you’re operating a service-based business, professional liability insurance, also known as Errors and Omissions (E&O) insurance, is a must. It protects your business against claims of negligence or errors. Think of it as a guardian angel that shields your business from potential lawsuits.

Professional liability insurance can mitigate financial losses that businesses may face as a result of lawsuits due to errors in the professional services they provide. It’s like having a safety net that catches you when a mistake happens.

Building Your Brand and Online Presence

In the current digital era, it’s imperative to establish a potent brand identity and online presence. Your brand’s identity encompasses its:

  • Personality

  • Values

  • Mission

  • Unique experiences it offers

These elements can significantly impact its revenue, customer retention, and market positioning. It’s like creating a unique identity that sets your business apart from the competition.

The development of a strong brand identity includes:

  • Defining a clear purpose, rooted in the company’s origins and values

  • Creating a memorable name that conveys the business’s mission

  • Forming a visual identity with elements such as a simple, versatile logo, and choices of fonts, photography, and colors, each needing to be recognizable and evoke the brand’s ethos.

Your business name and logo are the face of your brand. They’re the first things people see when they come across your business, so they need to be memorable and reflect your brand’s ethos. A well-executed brand strategy can provide insight into the newsletter’s content and potentially increase subscriber numbers.

Consistency in brand styling and messaging aids in building brand recognition and credibility. Understanding the target market through creating a buyer persona helps in crafting a business name and logo that resonates with customers’ age, interests, and values. It’s like getting to know your customers on a deeper level and creating a name and logo that speak directly to them.

Establishing a Professional Website

A professional website is like a digital storefront for your business. It’s where potential customers can learn about your products or services, make purchases, and get in touch with you. Optimizing a website for SEO includes the use of specific keywords and strategies to enhance its visibility in search engine results.

Using user-friendly tools and templates, like those provided by Shopify, can help you design a professional-looking website without needing to code. It’s like having a team of professional web designers at your fingertips, helping you create a stunning website that showcases your brand.

Engaging with Customers on Social Media Platforms

Social media is a powerful tool for building your brand and engaging with your customers. A well-executed social media marketing strategy can provide insight into the newsletter’s content and potentially increase subscriber numbers. It’s like having a direct line of communication with your customers, allowing you to:

  • Share updates and news about your brand

  • Interact with customers on a personal level

  • Respond to customer inquiries and feedback

  • Promote your products or services

  • Build relationships and loyalty with your audience

By utilizing social media effectively, you can enhance your brand’s visibility and connect with your customers in a meaningful way.

Platforms like Instagram are especially suitable for brands with a strong visual component, enabling them to use imagery for advertising, audience growth, and even direct sales. To establish oneself as an influencer or content creator, it’s essential to choose a niche, comprehend the dynamics of social media influence and content creation, and prepare a content schedule for consistent engagement.

Preparing for Operations: Staffing and Inventory Management

Upon laying the groundwork for your business, the next step involves preparing for operations. This involves recruiting and hiring a great team, managing inventory, and ensuring efficient processes for staffing and inventory management. It’s like assembling a well-oiled machine that’s ready to hit the ground running.

Recruiting and hiring a great team is crucial for a business because employees are fundamental in building the product and service experience. On the other hand, effective inventory management enables a business to make informed decisions on production and stock reordering, crucial in preventing stock shortages and ensuring customer satisfaction.

Hiring Your First Employees

Recruiting your first employees marks a significant milestone in any business. It’s a sign that your business is growing and that you’re ready to take it to the next level. Businesses operating as a corporation or partnership, or those that plan to hire employees, must obtain an Employer Identification Number (EIN) from the IRS. It’s like getting a social security number for your business that allows the government to track your business’s transactions.

When it comes to recruitment, it’s important to remember that the quality of your employees can make or break your business. The best employees are those who are actively recruited. It’s like searching for a diamond in the rough; you need to actively seek out the best talent instead of waiting for them to come to you.

Streamlining Payroll and Benefits

Upon hiring your initial employees, the next step involves setting up payroll. This involves choosing whether to process it internally or work with a payroll provider. It’s like deciding whether to cook dinner at home or eat out; both options have their pros and cons.

Offering benefits, including health insurance and retirement plans, can attract employees and is also advantageous for the business owner. It’s like offering a bonus to your employees that not only benefits them but also helps retain them in the long run.

Inventory Management Tactics

For your business to succeed, effective inventory management is key. It enables you to make informed decisions on production and stock reordering, preventing stock shortages, and ensuring customer satisfaction. Calculating inventory turnover rate can highlight how quickly inventory is sold and need replenishing, which is crucial for assessing a product’s market demand and maintaining an efficient stock level.

Implementing inventory management software helps in tracking inventory levels, orders, sales, and deliveries in real-time, thus preventing stockouts and excess inventory. It’s like having an inventory manager who keeps an eye on your stock levels and ensures you always have enough products to meet customer demand.

Summary

Starting a business is an exciting journey filled with challenges and rewards. In this blog post, we’ve explored the essential steps to starting a successful business in 2024, from choosing the right business structure to preparing for operations. With careful planning, perseverance, and a dash of entrepreneurial spirit, you can turn your business idea into a thriving venture. So, what are you waiting for? It’s time to take the leap and start your entrepreneurial journey!

Frequently Asked Questions

How can a beginner start a business?

Starting a business can seem overwhelming, but here’s a quick guide to get you started: Perform market research, create a business plan, secure funding, choose a business name, file registration documents, and apply for an EIN. Time to make those entrepreneurial dreams a reality!

How to start a business with $1,000 dollars?

You can start a catering business, food delivery services, or a mobile coffee cart with $1,000 or less. Get your entrepreneurial journey brewing with these low-cost business ideas!

What are the key considerations when choosing a business structure?

When choosing a business structure, consider tax implications, personal liability, administrative requirements, and the ability to secure financing. Don’t overlook these factors when making your decision.

Why is a business plan important?

A business plan is crucial because it acts as a roadmap for your business, guiding you through each stage of starting and managing it, including the business model, market research, marketing strategy, and financial projections. Don’t start a business without a plan!

How can I finance my business?

You can finance your business through options like SBA loans, grants, angel investors, venture capital, or crowdfunding – it’s all about finding the right fit for your needs. Good luck with funding your venture!

Brian Tracy’s Self-Concept in Business: The Self-Ideal, Collective Self-Image, and Self-Esteem

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a hand holding a growing seedling to represent the growth of self-concept in business

Estimated reading time: 13 minutes

Table of Contents

Brian Tracy’s idea of the self-concept in business is original. In his first book, Maximum Achievement, he takes the three elements of personal self-concept — self-ideal, self-image, and self-esteem — and he applies them to business.

Who is Brian Tracy? Brian Tracy is a business author of over 70 books and an entrepreneur who has started multiple profitable businesses. He’s also known for his speaking and his sales training. One of his top programs is the Brian Tracy 21st Century Sales Program.

Is Brian Tracy a Christian? Apparently he is, and this no doubt shapes his view of the self-concept in his business and personal life.

To learn more about his business advice, listen to this podcast episode, “How to Build a Business That Works.” Brian Tracy knows what it takes for your business to succeed.

Putting Brian Tracy’s Sales Ideas Into Action

In 2007, I got my dream job (as an employee) as a sales assistant in a bookshop. The chain of stores had a loyalty rewards program that equated to people who signed up getting 5% off their purchases through the points they accumulated.

You’d think that would be an easy sell, but I was doing it poorly. Each week in the staffroom, a list would come out showing how many people each sales assistant had signed up. I was always in the middle bottom.

I shared this situation with my best friend and he gave me his copy of Brian Tracy’s audio program, The Psychology of Selling.

On my way to and from work, I’d listen to it. Then at the bookshop, I’d apply one (or more) of the ideas I’d learned.

Within 2 weeks, the new list came out, and I was at the top. For the rest of my time at the store, I remained in the top two to three people each week for signing people up to the rewards program.

Eventually, as a result, I was able to write 5 Ways to Sell Even When You Hate Selling.

This was the first experience I had of learning new skills and applying them and getting measurable results that were even better than I expected.

How about you? When have you learned something, put it into action, and got your desired results?

So when Brian Tracy introduces this idea of a self-concept in business, I know his ideas will work.

The three components of a business self-concept mirror those of a personal concept. They are:

  • Self-ideal.
  • Collective self-image.
  • Self-esteem.

A positive self-concept is a key driver of business performance and success. By actively cultivating a strong self-ideal, collective self-image, and individual self-esteem, businesses can unlock the full potential of their employees, foster a thriving culture, and achieve their goals.

#1) The Self-Ideal: Blueprint for Excellence

You can define the self-ideal can as a combination of the vision, values, and mission of a business.

And to develop a clear and inspiring self-ideal for your own business, you need to have a written statement of your business vision, values, and mission.

This video from Young Entrepreneur’s Forum helps you do just that in 6 steps:

It’s critical that you align your business self-ideal with your personal values and purpose. As Stephen R. Covey writes, “Life is one indivisible whole.”

As such, if your personal and business values are at odds with each other, you cannot lead a rich and meaningful life, as you’ll be trying to move in two directions at once.

#2) Collective Self-Image: Seeing is Believing

Maxwell Maltz introduced the concept of the self-image in his classic, Psycho-Cybernetics, like this:

The most important psychological discovery of this century is the discovery of the “self-image.” Whether we realize it or not, each of us carries about with us a mental blueprint or picture of ourselves. It may be vague and ill-defined to our conscious gaze. In fact, it may not be consciously recognizable at all. But it is there, complete down to the last detail. This self-image is our own conception of the “sort of person I am.” It has been built up from our own beliefs about ourselves. But most of these beliefs about ourselves have unconsciously been formed from our past experiences, our successes and failures, our humiliations, our triumphs, and the way other people have reacted to us, especially in early childhood. From all these we mentally construct a “self” (or a picture of a self). Once an idea or a belief about ourselves goes into this picture, it becomes “true,” as far as we personally are concerned. We do not question its validity, but proceed to act upon it just as if it were true.1

Both Brian Tracy in Maximum Achievement and Maxwell Maltz in Psycho-Cybernetics state that it’s impossible to outperform your self image. This is as true for businesses as it is for individuals.

Therefore, you must change your business’s self-image if you want to achieve better performance.

In business, the self-image refers to “the way the company’s management and employees see themselves and think about themselves.”2

A negative self-image in business leads to low morale and a lack of motivation and inspiration.

Here are 3 ways to foster a positive collective self-image in any business:

Communication and transparency.

Make sure your team is sharing successes with each other and progress towards goals.

The way to do this is through the Daily Huddle, a 5 to 15-minute standing meeting that everyone of your team members attends.

Verne Harnish introduced this idea3 in Mastering the Rockefeller Habits and this meeting is to be tightly run.

The agenda for the meeting is the same each day and has each person answer 3 questions:

  • What’s up? Share the work you’ll be doing today, including your priority.
  • How are you tracking with your daily measures? Everybody in the organization needs to have some kind of measurement or KPI defined so leaders can hold them accountable for their work and their contribution to the business’s bottom line.
  • Where are you stuck? If team members are stuck with something, until you get them unstuck, your business will stall. Clearing stuck points is one of the leader’s top jobs.

Recognition and appreciation

Celebrating achievements boosts individual and team morale.

Verne Harnish offers this tip: “When you reprimand or praise, refer to a core value.”

Again, to do this, you need to have done the work to produce a written statement of those core values.

Focus on Strengths

It’s common for leaders to think that they will best improve themselves and their team members if they focus on improving their weaknesses.

But smart leaders know you get better results by focusing on people’s strengths.

In 25 Ways to Win with People, John C. Maxwell writes:

We need to focus on finding people’s strengths and pointing them out. Most people have strengths that they rarely get to use. Those strengths may be job skills, knowledge, general abilities, personality characteristics, or other attributes.4

Similarly, Ken Blanchard in Whale Done! takes the method used for training whales and applies it to getting desired results from people:

An important concept to remember is that the more attention you pay to a behavior, the more it will be repeated. We’ve learned from the killer whales that when we don’t pay a lot of attention to what they do wrong, but instead give lots of attention to what they do right, they do the right thing more often.5

#3) Self-Esteem: The Fuel for Growth

Brian Tracy defines self-esteem as “the sum total of the ideals of the organization, the current performance of the organization, and how well each person feels he or she is being treated by superiors and coworkers.”6

Increasing self-esteem improves employee engagement, productivity, and customer satisfaction.

Impact on Engagement

  • Motivation and Initiative: High self-esteem fuels intrinsic motivation, making employees more engaged in their work and eager to take initiative. They don’t need constant external push as they believe in their own abilities and the value they bring.
  • Positive Attitude and Collaboration: Individuals with high self-esteem are more likely to have a positive attitude, making them pleasant to work with and promoting effective collaboration. This creates a more enjoyable and productive work environment.
  • Confidence and Risk-Taking: Employees with high self-esteem are more confident in their skills and take on challenges readily. They’re less hesitant to try new things or propose solutions, fostering innovation and progress.

Impact on Productivity

  • Focus and Efficiency: Feeling confident and capable reduces stress and distractions, allowing employees to focus better and work more efficiently. They spend less time doubting themselves and more time getting things done.
  • Ownership and Accountability: High self-esteem encourages employees to take ownership of their work and hold themselves accountable for results. This leads to a higher quality of work and greater dedication to achieving goals.
  • Resilience and Perseverance: Faced with setbacks, individuals with high self-esteem are more resilient and persistent. They don’t give up easily and work through challenges, leading to higher overall productivity.

Impact on Customer Satisfaction

  • Positive Interactions and Service: Employees who feel good about themselves are more likely to project positivity and provide excellent customer service. They’re more patient, helpful, and willing to go the extra mile to satisfy customers.
  • Passion and Creativity: High self-esteem can spark passion and creativity in employees, leading to innovative solutions and engaging interactions with customers. This enhances the customer experience and fosters loyalty.
  • Effective Communication and Problem-Solving: Confident employees communicate clearly and effectively with customers, building trust and rapport. They’re also skilled at problem-solving and resolving issues to ensure customer satisfaction.

Remember, the connection between self-esteem and these factors is bidirectional:

  • Successful experiences and positive feedback from colleagues and customers can boost employee self-esteem.
  • A company culture that fosters employee well-being, recognition, and growth can further contribute to increased self-esteem.

By prioritizing employee well-being and creating a supportive work environment, organizations can nurture high self-esteem in their workforce, leading to a ripple effect of increased engagement, productivity, and customer satisfaction.

Factors that Contribute to Low Self-Esteem in a Business

Individual Factors:

  • Lack of experience or confidence: New employees or those entering unfamiliar fields may struggle with self-doubt because of perceived inexperience or lack of specific skills.
  • Personal struggles: Ongoing personal challenges or mental health issues can drain energy and focus, leaving less room for self-confidence in the workplace.
  • Negative self-talk and perfectionism: Harsh self-criticism and unrealistic expectations can create a downward spiral of low self-esteem, diminishing motivation and performance.
  • Past negative experiences: Previous workplace bullying, criticism, or failures can leave lasting scars, impacting self-perception and confidence in work settings.

Organizational Factors:

  • Toxic work environment: Lack of respect, bullying, and unhealthy competition can breed fear and insecurity, eroding self-esteem in vulnerable individuals.
  • Lack of recognition and appreciation: Feeling undervalued or overlooked for contributions can significantly deplete self-worth and motivation.
  • Micromanagement and lack of autonomy: Excessive control and lack of trust can stifle creativity and initiative, making employees feel incapable and dependent.
  • Unclear expectations and goals: Confusion about roles and responsibilities can lead to frustration and self-doubt as individuals struggle to meet undefined expectations.
  • Inadequate training and development: Feeling unprepared or unsupported in challenging roles can fuel self-doubt and hinder performance, impacting self-esteem negatively.

Additional Factors:

  • Unfair treatment or discrimination: Bias, prejudice, or discriminatory practices can severely damage self-worth and belonging, leading to isolation and low self-esteem.
  • Work-life imbalance and burnout: Excessive workload, long hours, and insufficient breaks can lead to chronic stress and burnout, impacting mental and emotional well-being, and indirectly lowering self-esteem.
  • Negative peer interactions: Uncooperative or hostile colleagues can create a challenging work environment, impacting confidence and self-worth through negativity and gossip.

It’s important to recognize that the impact of these factors can vary depending on individual personality, resilience, and coping mechanisms. However, creating a healthy, supportive, and empowering work environment is crucial for preventing low self-esteem in the workplace and enabling individuals to thrive with confidence and self-belief.

3 Ways to Boost Individual and Collective Self-Esteem

#1) Continuous Learning and Development

Growing organizations are learning organizations. They have systems in place to encourage and ensure team members are always learning new skills and gaining new qualifications.

If you’re going about this the right way, you’ll know because your employees will be more valuable to the marketplace when they move on than they were when they arrived at your business.

Here are a couple of practical ways to go about this:

  • Start a bookclub to read through a book each month.
  • Subscribe to a book summary service that condenses the key ideas from books into actionable insights.
  • Hold quarterly training events (based around your quarterly theme).
  • Review lessons you’ve learned at the completion of a project.

#2) Supportive Leadership

Create a culture of encouragement and feedback.

One practical way to do this as Tiffani Bova shares in The Experience Mindset is to create a dedicated problem-solving email for your business.

When team members see that something’s broken or have suggestions for improvement, they email the special address.

Once a week, at the end of the week, the CEO reads all those emails. The CEO’s job for the next week is to fix the problems and implement the suggestions, or explain why the thing requested can’t be done.

#3) Meaningful Work

Everything every person on a team does needs to be connected to the company’s Wildly Important Goal (WIG) or Big Hairy Audacious Goal (BHAG).

On a personal level, goal achievement is a skill everyone needs to master. At a business level, no one should get paid to do things that aren’t connected to the business’ goals and values.

For work to be meaningful, the way you want to change the world for the better needs to inspire your team members.

Putting Tracy’s Self-Concept into Action

Implementing Brian Tracy’s self-concept framework in your business can unlock impressive outcomes. Here are some practical steps to get started:

Building the Self-Ideal:

  • Vision and Mission: Craft a clear, inspiring vision statement that defines your long-term goals and aspirations. Translate that vision into a concise mission statement outlining your purpose and core values.
  • Values Inventory: Identify your company’s core values – the guiding principles that drive your decisions and behaviors. Ensure everyone, from leadership to employees, understands and upholds these values.
  • Ethics Framework: Establish a clear code of ethics outlining acceptable conduct and decision-making principles. This fosters trust and transparency, contributing to a positive self-image.

Shaping the Collective Self-Image:

  • Communication Transparency: Regularly communicate company updates, goals, and progress with transparency. Open communication builds trust and reinforces a sense of shared purpose.
  • Internal Branding: Develop a consistent brand identity that reflects your company’s values and aspirations. This helps create a unified feeling and a sense of pride in belonging.
  • Success Stories: Celebrate wins, big and small, to highlight teamwork, individual contributions, and overall company progress. This boosts morale and reinforces a positive self-perception.
  • Feedback Culture: Encourage open and honest feedback both upwards and downwards. Constructive criticism helps identify areas for improvement and fosters a culture of continuous learning and growth.

Enhancing Individual and Collective Self-Esteem:

  • Training and Development: Invest in employee training and development programs to equip individuals with new skills and knowledge. This builds confidence and empowers them to tackle challenges.
  • Recognition and Appreciation: Recognize and appreciate individual and team achievements publicly. This reinforces a sense of value and motivates continued excellence.
  • Empowerment and Autonomy: Trust your employees by giving them ownership of tasks and projects. This fosters initiative, responsibility, and a sense of accomplishment.
  • Supportive Leadership: Provide consistent coaching, guidance, and encouragement. Leaders who show care and support contribute significantly to employee well-being and self-esteem. Develop the ultimate leadership style.
  • Work-Life Balance: Promote healthy work-life balance by advocating for reasonable hours, breaks, and time for personal pursuits. This reduces stress and burnout, leaving more room for mental well-being and confidence.

Remember:

  • Start small and iterate: Implementing self-concept is an ongoing process. Begin with manageable steps and adjust your approach based on results and feedback.
  • Engage your team: Involve employees in crafting the self-ideal and collective self-image. This fosters ownership and a stronger sense of belonging.
  • Measure and celebrate progress: Track progress towards your goals and celebrate milestones along the way. This keeps everyone motivated and reinforces the positive impact of your efforts.

By implementing these practical steps, you can transform your business culture, nurture positive self-perception, and unlock the full potential of your team. Brian Tracy’s self-concept framework provides a powerful roadmap for sustained success and growth.

Conclusion

Here are the key takeaways from this blog post:

  • Just as you have a personal self-concept, there is also a self-concept in business.
  • This self-concept comprises 3 elements: self-ideal, self-image, and self-concept.
  • Shaping your organization’s self-concept is critical to accomplish your business goals.
  • Reflect regularly on your business’s self-concept. Is the current self-concept moving you towards your goals? If not, what can you do to change course and improve your self-concept?
  • To increase business success, be intentional in shaping your self-concept in business.

FAQs

What is self-concept in business?

According to Brian Tracy in Maximum Achievement self-concept in business comprises 3 parts: self-ideal, self-image, and self-esteem. Self-ideal refers to the collective ideals team members hold about the kind of company they’re working for. Self-image refers to how leaders and team members see themselves in terms of their contribution to the team and the business goals. Self-esteem refers to how much leaders and team members enjoy the work they’re doing and feel like its worthwhile.

Why is self-concept important in the business community?

Business leaders have their own self-concept and it either enables them to achieve their goals or limits them. For a business community to thrive, leaders need a strong self-concept. Likewise, for businesses to thrive, they also need a strong self-concept. Fortunately, all the elements of self-concept are within your control.

Notes

  1. Maxwell Maltz, Psycho-Cybernetics (Updated and Expanded) (London; Souvenir Press, 2015), 1. ↩︎
  2. Brian Tracy, Maximum Achievement: Strategies and Skills That Will Unlock Your Hidden Powers to Succeed (New York: Simon & Schuster, 1993), 83. ↩︎
  3. Verne Harnish, Mastering the Rockefeller Habits (20th Anniversary Edition): What You Must Do to Increase the Value of Your Growing Firm (Charleston, SC: Forbes Books, 2022), 164-6. ↩︎
  4. John C. Maxwell, The Maxwell Daily Reader: 365 Days of Insight to Develop the Leader Within You and Influence Those Around You (Nashville, TN: Thomas Nelson, 2007), 21. ↩︎
  5. Ken Blanchard, Thad Lacinak, Chuck Tompkins, Jim Ballard, Whale Done!: The Power of Positive Relationships (London: Nicholas Brealey Publishing, 2002), 14. ↩︎
  6. Tracy, Maximum Achievement, 83. ↩︎