What’s Your Long Term Goal for Business? 3 Paths to Help You Decide
Last week, we kicked off the year with goal setting activities. Today, I’d like to follow up with an objection I often hear: “I don’t want to set a firm long term goal for business. It feels too limiting. I want to be open for opportunities that come my way.”
And you know: I love an objection. A response like this means that someone is thinking long-term and critically about goal setting. So let me assure you: I don’t want you to pursue your goals blindly, at all costs.
Good goals should give you focus and simplicity in the short-term and create optionality in the long-term.
Your Optimal Growth Path
Over the past 7 years, I’ve developed an Ellevated Outcomes vocabulary in helping our clients think about their long term goal for business. It’s all in the spirit of what I call Optimal Growth. And for small, creative businesses, there are 3 paths you may want to pursue for your own optimal growth.
1. The Start-Up (Scale to Sale)
The Start-Up is the type of (non-corporate) business you hear most about in the media. It’s because when one is successful, it’s hugely successful. But to the contrary: when one fails, it really fails. There’s not much in-between.
The term “startup” refers to a company in the early stages of its operations. Startups are founded by one or more entrepreneurs who want to develop a product or service for which they believe there is demand.
These companies generally launch with high costs and limited revenue, which is why they look for capital from a variety of sources such as angel investors and venture capitalists.
Startups typically require several years to make a profit, so significant, high-risk investments typically are needed to get one off the ground.
This model focuses on scaling quickly with systems and structures that allow the business to grow independently of you. If you’re aiming for large-scale growth and profitability isn’t your goal (this is so important!), this could be your path.
It may be for you, if you…
- Dream of a business that runs without your daily involvement; you don’t mind giving up product and creative work (and control).
- Aim to build systems that are replicable and scalable (technology and operational efficiency needs to be a significant part of the business model).
- Seek opportunities for significant financial growth or eventual acquisition.
- Have access to funding.
- Seek risk!
- Don’t mind giving up control and ownership (you trade that for funding).
Key challenges:
- Maintaining quality and consistency at scale.
- You give up control and ownership.
- Fundraising.
- All or nothing success / failure (there’s a reason they call success stories “unicorns”).
Example: Airbnb
2. The (Solopreneur) Lifestyle Business
Some business owners come to Ellevated Outcomes, thinking they want to grow beyond themselves (build a team); but once we work with them for a couple years and get things running optimally, they realize: “This is pretty good… maybe I don’t want to grow beyond myself.”
If you want an optimally running Solopreneur Lifestyle business, the idea is to get things as tight, light, and as systematized as possible. These businesses are intentionally small, offering flexibility and the ability to manage all operations under one brain (with the help of technology).
It may be for you, if you…
- Prefer minimal overhead and maximum control. Along with this can be (nearly) complete creative freedom.
- Are focused on maximizing short-term personal income, rather than long-term wealth (there are other ways to create wealth with your income, but it won’t be directly through the business).
- Aren’t available or desiring to stretch yourself emotionally in a work setting (in contrast to the people aspect of the Studio model below).
Key Challenges
- Continuing to grow oneself in skill, business acumen, and new tools (when you’re only accountable to you).
- Avoiding burnout as the sole operator.
- Risk of bing owner-operator: if something happens to you, your ability to generate income is at risk.
- Real revenue ceiling is generally ~$250K (and note: this isn’t the same thing as take-home pay).
Example: our beloved Embody Design Studio!
3. The Studio (People-Powered Business)
In the Studio model, client intimacy is at the heart of your strategy. “Clients are your value, and people are your power.” This approach emphasizes developing and training a team, who consistency replicate your brand experience and deliver high-touch value. Think about it this way: it’s the Solopreneur model, magnified. The core, imperative difference is: it’s a team of people (not just 1) carrying out work, as the same level as you.
It may be for you, if you…
- Are disciplined for process.
- Have the emotional capacity to build a team.
- Enjoy creating personalized experiences for clients.
- See growth as a way to serve more people, internally and externally (not just generate revenue).
- Don’t need to maximize your short-term cash (what you pay yourself); you’re comfortable capping your short-term pay to reinvest in people and the business’s long-term value.
- Have endurance for (lots of!) learning pits and the long-game.
Key Challenges
- Balancing in-the-business work with on-the-business work. Continuously evolving and tweaking this as time goes on. Even if done well, it can take 7-10 years to fully get “on” the business.
- Teaching others not only the “what” but the “how” your business does things. We call this transference of the brand experience.
- Balancing client satisfaction with letting your team make errors, as they grow.
Example: your friendly team at Ellevated Outcomes 😉
How to Choose Your Path
At Ellevated Outcomes, we have our favorite path(s), no doubt.
For example, we don’t work with true start-ups because in that case (most of the time), the owner has ceased total control when they’ve accepted outside funding. Usually on that path, the goal is to grow as fast as possible, not profitably. And make no mistake about it: some do have large financial payoff in that model; but it’s not our specialty. We like to help people make profit (and not kill themselves along the way).
We do have many clients we help become optimal solopreneurs. As described, if you’re totally clear about your short and long term goal for business, along with your personal preferences (that’s a big part), it can be a great means for lifestyle.
But you won’t be surprised to hear me say: personally, my heart will always be with the Studio model. IMO it’s the hardest and at times: most heartbreaking. But to me personally, it is the way to grow optimally. It takes the upside from the Start-Up and Solopreneur models, packaged up in a way to grow with integrity. And I do think that building this way is teachable and learnable for ordinary people.
It reminds me of how Scott Galloway says:
That’s wealth. There are numerous paths to it; the reliable ones take time and hard work but are within the grasp of most people.
But truly: there’s not a “right” answer for your optimal growth. You need to know yourself, your resources, your opportunity, and the trade-offs you’re willing to make. Once your clear-eyed on those elements forming your north star, then you can set your long term goal for business. And I promise: that clarity and focus will not limit you. To the contrary, it will open you up for opportunity. For optionality.
PS – if you’d like an audio/visual teaching to sit alongside this reading, here you are (19 minute video).
