Video: What is a back of the envelope business plan?

My friend and accountant Bob Cole used to say that he loved when entrepreneurs came into his office with a business plan that fit on the back of an envelope. It made it easy to grasp the essence of what the business was trying to do, how it would work, and the amount of profitability. As businesses grow, we often lose sight of the essence and simplicity of the key drivers of what makes our business successful. Then it’s time to return and write it all down on the back of an envelope again.

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Creating Leaders

As I came on watch, the last of the light of the day faded. Everyone else was settling down in the sailboat for the night. I was alone at the wheel in the middle of the Atlantic Ocean, responsible for keeping the boat on track and everyone safe for my three-hour watch. Turning around to look behind the boat, I saw a slightly darker cloud approaching. I knew that could only mean a squall was coming with lots more wind. It was time to roll in some of the sails so that we would still be in control when the squall hit.

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Clearing Out the Clutter

Clutter is a fact in all of our lives. We recently had to say good bye to our long-time Honda Odyssey Van whose second transmission gave up. We scrapped the van, but its summer tires have been sitting along the side of our house since January. I finally made the commitment to get them out, photograph them, and put them for sale on Craigslist.

The problem with clutter is that it drags at us draining away some of our limited energy. As entrepreneurs, the more drains and distractions we have, the worse our performance and that of our business. Regularly clearing out the clutter frees us to pursue more of the key strategic initiatives that will push us and our businesses ahead the fastest and furthest.

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Plan Your Day

In 4 Vital Actions, I present four areas of your day where you should focus: start, plan, connections, and finish. How and when you plan your day has a massive impact on how your day works out. What path are you going to choose for the mountains you need to climb? How will you communicate to your team what route they need to take?

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Finish Well

How I finish my day in a large way decides how I will start my next day. For example, I’ve learned that I need to head to bed one hour before the time I want to be asleep. Since I need to average seven hours sleep a night it is pretty easy to work backwards to when I need to start the process of winding down for the day.

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