Attendees at a “Minding My Own Business” Workshop have been exposed to the Fremont Business Operating System. This system is the baseline for all management consulting performed by affiliates of The Fremont Group. It starts with a clear identification of your goals—and the goals of your spouse. What is it that you really want from your business. Once the reason for your business to exist is identified, a financial model of your business must be created. What results are required in order for you to obtain your goals? Many small business owners operate like the football coach with a game plan that reads, “if everything goes right we will only lose by a touchdown!” That coach won’t keep his job for long and the business owner who doesn’t have a game plan designed to win the game won’t survive long either. From the development of the financial model it can be identified (1) if the goals are obtainable; and (2) the results that must be accomplished in order to obtain the goals. This model then becomes the cornerstone of the company. It is the basis for organizational structure—what results are required from each position, the communication and evaluation of those results, accountability, and incentives. It creates the profit plan and the sales plan. It is the basis for pricing—the use of break even pricing and the establishment of pricing models. The financial model is a road map that you modify as you make wrong turns—after all, man plans and God laughs.
Put together, FBOS is your strategic plan. Owners who operate without it can be successful—particularly if they are lucky—but those who operate with it and diminishing their reliance upon luck.
Note–Fremont Business Operating System, FBOS and Minding My Own Business are registered trademarks of The Fremont Group