When I start a financial planning engagement I ask my client to define their goals and then we work to develop a plan.
When a client wants to start a new, or expand their current business I work with them on a projection to see if, and how, they can obtain their goals. When someone starts a diet, they have a plan to lose a certain amount of pounds. Many goals are not reached, but many are. Usually the ones that make it had a well thought out plan with a pretty thorough projection on how to get to where they wanted to be.
I’ve helped clients with projections of all sorts. Some were aborted before they started and some became far more successful than was ever imagined. I am almost sure that Jeff Bezos’ and Elon Musk’s imaginations could not have taken them to where they are right now. I am more than sure that there are many others just as imaginative and driven as they were, that we never heard about because they did not get too far with their ideas.
A projection or plan requires imagining the success you want and then picturing yourself there at whatever time goal you established. The projection would then be the plan working backwards to today, which is your starting point. I have a simple rule: If you cannot make it come out on paper, then how likely would it be to succeed?
This requires a mindset of how you will feel at the end of your journey when you reached your goal. What took place to get you there? What did you do and who did you rely on or use to help you? Were you sufficiently prepared along each step, and for a business, did you have adequate cash, people and supply chain resources? Did you have a consistent, and growing resolve to complete your journey? Were you willing to make the necessary sacrifices along the way when you were confronted with choices? Did you have an obsession to succeed?
Put yourself into the future and revel in your success; and then work backwards to today to see if you are willing to take that trip.
BTW, do not miss my “How Warren Buffett Did It” webinar The program is part of the East Brunswick Public Library’s Take a Business Break series. It is free but you will need to register. It is on Thursday April 29 at Noon. Register here.
If you have any tax, business, financial, leadership or management issues you want to discuss please do not hesitate to contact me at [email protected].
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