You probably know that a stool needs at least three legs to stand and support your weight.
Yet, often you see a stool with more than three legs?
If a stool only needs three legs, why would you bother adding more?
This theory can be applied to the products and services you offer. If you’ve done it right, you’ve built a business providing services or products to a specific niche customer.
Ideally you have 1, 2 or 3 services or products all focused on serving that niche customer base.
So why would you start offering services or products that your target customers aren’t demanding and, more importantly, that takes your focus away from your unique selling proposition?
Here’s an example….
We did a Strategic Planning Day with an electrical contractor.
He had system problems, no budget, no KPI targets and he wanted to increase profit and improve his quality of life.
In the Planning Day we had an in depth discussion about all of the products and services he was offering.
Like many small business owners, over time, he had identified opportunities to expand his range of services and he was offering 13 different services from domestic maintenance work to new houses to wiring new commercial projects.
At this point we introduced the Three Circles of the BHAG diagram to analyse each service to determine what fell outside his specialty, and then to create his Big Hairy Audacious Goal (BHAG).
A BHAG gives you a clear focus and has the power to get you out of thinking too small. It makes your organization better.
It forces you to dramatically improve because otherwise you won’t be able to achieve it.
It’s a mechanism to stimulate progress!
When we discussed service number 11 on his website, ‘energy efficiency audits’, his eyes lit up and he became very animated.
He told us how he loved this work and he had done a big job recently where the client would recover the full capital cost within two years and the exclusive product had a 7 year guarantee.
This was a very profitable job and easy to administer because all of his team were on one site for an extended period.
After fifteen minutes of excited explanation, he paused and said;
“This is the only work I should be doing isn’t it?”
He had just identified the intersection of his three circles and then all we had to do was help him work out his BHAG and the actions required to make it happen.
Two hours into the Planning Day, he told us;
“I’ve learnt more about my business in the last two hours than in the previous six years of running it.”
How can this help you?
A Planning Day is a process where the right questions make the answers obvious.
Every business owner can benefit from this process and if you qualify, there is a guarantee that if you are not happy then you don’t pay.
What would happen if you did a Planning Day?