The $100 MBA Show Episode Summary: "MBA2502 Why August is Such an Important Month in Business"
Podcast Information:
- Title: The $100 MBA Show
- Host/Author: Omar Zenhom
- Description: Empowering entrepreneurs to start and grow their businesses without the need for expensive degrees or significant financial risks. Hosted by Omar Zenhom, a seasoned entrepreneur and business coach, the show delivers practical, actionable lessons on business strategies and skills essential for turning business ideas into reality.
- Episode: MBA2502 Why August is Such an Important Month in Business
- Release Date: August 2, 2024
Introduction
In episode MBA2502 of The $100 MBA Show, host Omar Zenhom delves into the critical significance of August for entrepreneurs and business owners. Contrary to the common perception of August as a vacation month, Omar presents August as a pivotal period for assessing business progress and strategizing for future growth. This comprehensive summary captures the essence of Omar's insights, discussions, and actionable strategies shared in the episode.
Why August is Crucial for Business
1. Mid-Year Reality Check on Annual Goals
Timestamp: [01:07]
Omar emphasizes that while many take August off, entrepreneurs should use this month to evaluate their yearly progress. By early August, businesses typically have five months remaining in the calendar year. This period serves as an ideal checkpoint to assess whether the business is on track to meet its annual objectives.
Key Points:
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Goal Assessment: Entrepreneurs usually set annual goals at the beginning of the year, such as revenue targets, customer acquisition, and hiring plans. August is the time to measure progress against these goals.
“What you decide and what you do in August can dramatically affect the success of your business now and in the future.” — Omar Zenhom [01:07]
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Realistic Evaluation: If a business is behind on its goals, August serves as a wake-up call to intensify efforts rather than adjusting goals downward for a false sense of achievement.
“Don't give up. Don't fall in the trap where people change the original goal to allow them to feel successful when they came up short.” — Omar Zenhom [07:15]
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Action-Oriented Planning: For instance, if a revenue goal of $1 million is only partially achieved by August, entrepreneurs should calculate the remaining target, add a buffer (e.g., 10%), and outline specific actions to bridge the gap.
“It's all numbers. So August is a great month for you to say, hey, am I on track? Am I not on track?” — Omar Zenhom [05:30]
2. Strategic Planning for the Upcoming Year
Timestamp: [08:45]
August also marks the beginning of strategic planning for the next business year. Omar introduces the concept of the "preloaded year," a method inspired by business coach Dale Beaumont, which involves detailed planning of the upcoming year’s activities and goals during August.
Key Points:
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Preloaded Year Strategy: Entrepreneurs should start by marking time off—holidays, vacations, and long weekends—on the calendar. This ensures adequate rest periods and prevents burnout.
“The first thing you fill out in the preloaded year is the time off.” — Omar Zenhom [09:20]
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Scheduling Major Events and Projects: Identifying and scheduling significant business activities, such as product launches, conferences, and strategic projects, ensures they are prioritized and executed efficiently.
“If it's not in the calendar, it's not happening.” — Omar Zenhom [10:05]
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Resource Allocation: Planning ahead allows businesses to allocate resources effectively, whether it’s hiring new team members, engaging agencies, or training existing staff.
“You might need a few months to make some hires. You may need a few months to vet out an agency to help you out…” — Omar Zenhom [12:00]
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Implementation Readiness: By completing strategic planning in August, businesses can enter the new year prepared to implement plans without the delays that often occur when planning starts in January.
“By January 1st, after you enjoy the new year, you are hitting the ground running.” — Omar Zenhom [14:30]
Detailed Strategies and Insights
A. Setting and Evaluating Goals
Omar advises keeping annual goals limited to three major objectives to maintain focus and avoid overwhelm. Regularly reviewing these goals helps in making necessary adjustments and ensures alignment with the business’s overall vision.
B. Preloaded Year Planning
Using the preloaded year method, entrepreneurs can systematically plan their year, balancing work commitments with personal time. This structured approach facilitates better time management and strategic execution of business plans.
C. Hiring and Resource Allocation
Proactive planning in August allows businesses to recruit the right talent and secure necessary resources ahead of time, ensuring that projects are staffed and resourced appropriately when the new year begins.
The Rembrandt Month Concept
Timestamp: [15:30]
Omar introduces the concept of "Rembrandt Month," drawing inspiration from the renowned artist Rembrandt, who balanced his creative work with strategic business practices. Omar likens August to a period of strategic thinking and planning, akin to Rembrandt’s approach to his art and business.
Key Points:
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Strategic Creativity: Like Rembrandt, who valued the planning and strategic aspects of his work over mere execution, entrepreneurs should use August to think deeply about their business strategies.
“Rembrandt was a savvy business person. He actually built a considerable amount of wealth as an artist, which was rare back then.” — Omar Zenhom [15:30]
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Balanced Approach: While entrepreneurs are inherently doers, August should shift focus to strategic planning to ensure that their actions are aligned with long-term goals.
“August, I'm a thinker, I'm a planner. I'm gonna measure twice and cut once because the time and effort I am going to put into this is gonna really impact the success of the next year, the rest of this year.” — Omar Zenhom [16:10]
Conclusion and Takeaways
In this episode, Omar Zenhom effectively transforms the perception of August from a downtime period to a strategic business month essential for mid-year assessment and next-year planning. Key takeaways include:
- Conduct a Mid-Year Review: Assess your progress towards annual goals and identify areas needing accelerated effort.
- Strategize for the Future: Begin detailed planning for the next year to ensure a proactive approach rather than reactive adjustments in January.
- Implement the Preloaded Year Method: Schedule time off, major projects, and significant events to create a balanced and well-organized business calendar.
- Adopt the Rembrandt Mindset: Balance execution with strategic thinking to enhance both creative and business aspects of your entrepreneurial journey.
- Stay Committed: Use August to set a strong foundation for the remaining year and the upcoming year, ensuring sustained growth and success.
Omar concludes by encouraging entrepreneurs to leverage their unique position to plan effectively, ensuring that while others may be on vacation, they are strategically positioning their businesses for continued success.
“Take advantage of being an entrepreneur to its full extent.” — Omar Zenhom [16:45]
Notable Quotes
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On August’s Importance:
“What you decide and what you do in August can dramatically affect the success of your business now and in the future.” — Omar Zenhom [01:07]
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On Reality Checks:
“Don't give up. Don't fall in the trap where people change the original goal to allow them to feel successful when they came up short.” — Omar Zenhom [07:15]
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On Preloaded Year:
“If it's not in the calendar, it's not happening.” — Omar Zenhom [10:05]
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On Strategic Planning:
“By January 1st, after you enjoy the new year, you are hitting the ground running.” — Omar Zenhom [14:30]
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On the Rembrandt Mindset:
“August, I'm a thinker, I'm a planner. I'm gonna measure twice and cut once because the time and effort I am going to put into this is gonna really impact the success of the next year, the rest of this year.” — Omar Zenhom [16:10]
Embarking on strategic planning in August equips entrepreneurs with the clarity and preparedness needed to achieve their business goals effectively. By embracing August as a month of reflection and preparation, entrepreneurs can ensure sustained growth and success throughout the year.