Biz Talk: Vision Provides Direction

“Where do you see yourself in five years?” This is one of the most common questions asked during a job interview to find out how stable and responsible the candidate is, and how determined to become successful.

Companies love to hire winners, especially those with essential skills they need to accomplish their organizational goals.

It’s the same thing with customers. Why do you buy from the same pet shop, the same department store or the same ice cream parlor over and over again?  Because you think they are the best in delivering exactly what you need or want.  And they want to be the best in fulfilling those needs.

You have to specifically state your vision. “To be the best dessert and coffee shop in the East Bay Area within five years” was our vision for the bakery café we started several years ago in San Leandro.*

So what does being the best look like? Since we were not just a bakery or just a coffee shop, we couldn’t find any similar business within our ten-mile radius.  Why ten miles? Because that’s how far most potential customers we interviewed would be willing to drive just to get to their favorite shopping destination.

If it seems very unrealistic to find direct competitors, just focus on your target market. We have identified two types of customers – the retail customers (restaurants, caterers, coffee shops and hotels) and the end-consumers (those who live or work within our area).

It will be very helpful to get more detailed information such as statistical data about those customers so you can be able to set measurable targets more commonly known as goals or objectives. Being very specific with numbers allows you to set those goals as milestones for your progress. The usual metrics are sales or revenues and market share.

You can set your overall goal for five years then break it down into annual targets. Your market research should include industry information that will give you an estimate of your monthly or yearly sales. Your sales target is not an arbitrary number. It is usually the critical start-off point or basis for your financial strategy.

We wanted to attract at least 30 retail customers and 20 percent of our target end-consumer demographics within three years.

Our product testing and development phase yielded the following customer profile: female, 25-45 years old, married with two children, working or employed with a minimum household income of $50,000 annually. A good source of numerical data for your target demographics is the U.S. Census Bureau.

After you have established your five- or ten-year vision and quantified it into goals or objectives, you will have to set your annual target for your initial year of operations.  Your first-year performance will help you determine whether you have made the right assumptions for those target figures. Remember that there will always be unforeseeable events or circumstances that may affect your sales forecast.

Keep your daily operations focused on your target because if you don’t, you will be wasting a lot of your resources doing things that will not contribute to the accomplishment of your goals. This will cost you a lot of money and will significantly affect your bottom line.

In summary, the mission statement answers the question, “Who are we?”  The vision statement answers the question, “Where do we want to go?”  Goals and objectives are quantitative measures of progress towards your vision.

Your business venture will be a significant chapter of your life. Treat it as a critical part of your whole journey because it can either make or break your future.

*The bakery cafe business was sold in 2007.