Have you ever felt stuck in your business? Or even wish that your to-do list wasn’t quite as long? (Mine is at least a full page right now!)
Often, when our to-do list is that long, we just don’t know where to start or what to do next. Figuring out what those tasks are can be challenging, confusing, stressful, and frustrating. Sometimes it may feel like you are just putting out fires all day long. But knowing you are doing the right next thing in business is critical.
When that happens, it’s easy to lose track of the big picture of running a fun, cool quilt shop (probably the reason you got into business in the first place!) When you get caught up in the day-to-day activities, it’s hard to stay focused on your goals and grow your business.
Business Hierarchy of Needs
Every business has basic needs. Humans need air to breathe, food to eat, and water to drink. If those basic needs aren’t met, we lose the safety and security we need to survive. It’s expected as humans to know what we need next.
A business has basic needs too. But it’s not as common for us to know if what we are doing is the right thing. In the business hierarchy of needs, we need sustainable, predictable Cash. Without cash, your business is dead in the water.
The second level is the need for Stability. Only financial stability can bring proper security to our quilt shops. Money is the lifeblood of every business. If you cut off that supply, then you’ll be in trouble. If you spend too much of that supply, you’ll have problems too. It’s critical for a business to monitor its cash flow actively.
The third level is Efficiency. An efficient organization is required to grow and scale a healthy business. It’s so important to be efficient with our resources, including our time, employees, and money.
The fourth level is Impact. Are you having an impact on the shop, the customers, your employees, and your vendors? Those need to align so your quilt shop can transform not only your life but the lives of all the people impacted by your shop.
The fifth and final level is Legacy. Are you actively striving to improve the quilt shop? Most shop owners want their shop to outlast them and their lives. They want to create a legacy for their families.
How do I know what level I'm at?
Most businesses cycle through the first three levels - Sales, Profit, and Order. But they forget about the last two levels - Impact and Legacy. Or they try to do the levels out of order by skipping the first levels and focus on having an impact right away.
But if you aren’t getting sales in, you won’t have a significant impact if you can’t stay in business. So take each tier, one level at a time. Focus on getting a solid foundation, so you can seamlessly move forward through the tiers.
Are you interested in learning more about the levels? Watch the video below!