Everyone needs an operating philosophy.

Mine is to do the obvious thing—over and over for as long as I possibly can.

Sounds simple, I know.

But for me, it’s been an absolute game-changer.

Here’s why.

I spent most of my 20s believing that in order to build a successful business, I had to “change the world.” As a result, I lacked the speed, direction, and practical next steps that come with sticking to a plan so actionably simple.

Finding the Obvious in Your Business

First and foremost, you need to articulate where the true value to your customers, clients, or partners lies. Then hone in on the aspects of your business that are materially valuable when compared to others.

From there, identify your add-on offering. If one doesn’t immediately come to mind, think back to your sales calls.

If anyone asks, “Do you also offer x?” or you’re often told “You should also do x.” by clients and prospects, then this is a clear sign that this additional offering is already seen as an extension of what you already do.

This is the way to create stepping stones to success in any venture.

Aim to pick three. Then execute them relentlessly.

Doing the Obvious with Business Finance

Doing the obvious should extend to every aspect of your business. And when applied to your finances, it will drive meaningful results.

Here’s how.

If you’re not already doing the following, start today.

Track your A/R to A/P ratio, calculate your NWC, and review your sales report weekly. Each month, conduct a thorough review of your core financial statements and perform a detailed variance analysis against your forecast.

In addition, review and update your forecast quarterly in line with actual performance. And on an annual basis, update the rolling forecast and overhaul reporting as needed.

If you just do these four things, you’ll be ahead of 90% of SMBs.

The best part, you can do them all yourself.

Putting It All Together

Here are your top takeaways from this week’s post.

1. Everyone needs an operating philosophy. Mine is to do the obvious thing over and over.

2. Consistently doing the obvious means that you don’t have to change the world in order to build a successful business.

3. Find the “obvious” in your business by first articulating where you provide the most value, especially relative to your competitors. Then, identify your add-on offering.

4. Doing the obvious also extends to business finance, and it’ll get you ahead of 90% of SMBs.

5. Here’s how to do the financially obvious.

   1. Weekly - Track your A/R to A/P ratio, calculate your NWC, and review your sales report.

   2. Monthly - Conduct a thorough review of your core financial statements and perform a detailed variance analysis against your forecast.

   3. Quarterly - Review and update your forecast quarterly in line with actual performance.

   4. Annually - Update the rolling forecast and overhaul reporting as needed.

Hungry for More?

1. Follow me on Twitter and LinkedIn for daily content to take your business to the next level.

2. Shoot me an email with your questions or requests for what you’d like me to write about next.

‘Til Next Time,

Connor