Now, we know what you are probably thinking. My life and my business are two completely different things so of course I run them differently. When you think about it, however, it starts to make sense. If you are a fiscally responsible and disciplined person, those traits lead to more success in your business. The reverse of this can also be true. The skills learned in running a business can make you a better and more successful person.
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The three key aspects of running your life like a business are: defining your mission, creating measurable systems, and acquiring money-making assets.
First, let’s talk about defining your mission.
Define Your Mission
Every business has some form of a mission statement. LEGO’s is “To inspire and develop the builders of tomorrow.” TED’s is “Spread ideas, foster community and create impact.” Life Is Good’s is “To spread the power of optimism.”
A mission statement lets people know what kind of business you are and why. The same can be translated to your life. What kind of person do you want to be and why? Having a mission statement allows you to evaluate and reevaluate your priorities. Determining whether things are beneficial or harmful to your business and your mission is an important part of running a business and your life.
Here’s an example. Let’s say that you want to climb Mt. Everest. This is your mission. You cannot do this simply by appearing at the base of the mountain in your t-shirt and flip-flops. Buying gear, physical training, and researching guides and time of year are all necessary parts of your mission. Your decisions and actions are structured around your mission.
To read more about this, check out this article by Forbes.
Create Measurable Systems
A key part of running a business is making and using measurable and repeatable systems. These make your business run in a more efficient way.
This can be as simple as having a budget. Or it can be as complex as to-do lists and habit trackers. Some people may need to make a “it’s done” list instead of to-do list. This can help you measure your successes and see how much you are accomplishing each day.
You may have heard of SMART goals. These are goals that are: specific, measurable, achievable, relevant, and time-bound. This acronym applies to personal and business goals. By following this acronym, you create goals that are able to be completed.
The only difference between business and personal systems is the vocabulary. A business may build systems to help them reach their end of quarter goal of increasing profits by 5%. You may create plans and strategies to reach your goal of paying off your credit card debt by the end of the interest-free period.
Inc. has a great article that explores the topic of incorporating business-like systems into your personal life.
Acquire Money Making Assets
As a business you spend capital to acquire assets that will generate you more money. This could be a massage table for therapists to perform their trade or a crypto machine to mine bitcoin. At the end of the day, these assets are to make more money, and you only purchase them if they are an added benefit to your bottom line.
This is where most businesses and people split. Businesses spend money to make money. That is always the goal. People spend money for a variety of reasons, some necessary and some unnecessary. Food is a necessity. If nutrition and fitness are a part of your mission, then the foods you choose will either benefit or detract from that. The same can be said for financial missions. If you are also striving for that first million dollars, upgrading your well-functioning and paid-off car to a new car with payments, depreciating value, and interest is probably not the best idea. Making a conscious choice to spend your money in ways that will help you achieve your goals is a crucial part of running your life like a successful business.
Smarter And Harder expands upon this topic further in this article.
Running a business can be daunting so can managing your adulthood. By defining your mission, creating measurable systems, and acquiring money-making assets, you are incorporating the key aspects aspects of running a successful business into your personal life which can help you have a more successful personal life.
