6/19/2021 Tip: Why RMMs are So Important | Growthink

6/19/2021 Tip: Why RMMs are So Important

Today’s Quote

“You can buy attention (advertising).  You can beg for attention from the media (PR).  You can bug people one at a time to get attention (sales). Or you can earn attention by creating something interesting and valuable and then publishing it for free online.”
~ David Meerman Scott

 

Today’s Tip

One of the absolute keys to a successful business plan is to create the right business plan milestones. Doing so is essential to securing investors and making real progress towards achieving your goals.

Let me explain.

Your business is currently at point A. Where you want to go is to point B. Now getting from point A to point B requires you to complete milestones.

And the most important milestones are what I call “risk mitigating milestones” or RMMs. These are the milestones that help eliminate the risk of your company failing.

Let me give you some examples. For Google in its early days, risk milestones included completing their initial result ranking algorithms, getting customers to start using its search engine, and generating revenues.

Obviously once Google was generating a lot of revenues, it was not a very risky investment. But before customers started using Google.com, it was very risky. And before its initial algorithms were developed, it was even riskier.

Every business has risk mitigating milestones. Investors obviously prefer to back businesses where more risk milestones have been removed. I know I do.

Would you prefer to back a restaurateur who just has a vision for a new restaurant; or would you rather back that same restaurateur after the ideal location has been determined, the restaurant has been built, the staff has been hired and trained, the local newspapers have given it a great review, and the restaurant now has 250 loyal patrons and is booming every night?

It is your job as an entrepreneur to identify your risk mitigating milestones. And not only do you have to identify them, but you need to prioritize them. So that every day you are spending quality time working to accomplish them (and not spending time doing things like replying to emails that seem to be adding value; but which don’t actually put you closer to accomplishing your risk milestones).

But, actually, you can’t work on completing your risk mitigating milestones each day until you break up each of these milestones into much smaller projects. For example, Google creating its initial algorithm and a restaurateur finding an ideal location are great milestones, but way too large to accomplish on a daily basis.

Each milestone needs to be broken down into numerous chunks; chunks that can be completed every day, and progress made. It’s like writing a book. If you write one page every day, by the end of the year, you’ll have a 365 page book.

Developing RMMs is an absolutely essential component of your business plan, and belongs in your Operations Plan section. Investors need to understand these milestones and your projected timeline for accomplishing them. You need to understand them to prioritize your time and hire the right people at the right time.

 

Today’s Resource

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Trivia

Today’s Question: What is not true about the founder of Pan American Airlines, Juan Trippe?  

* He proposed the idea for the 747

* He graduated from Harvard

* He created affordable air travel

* He originally worked for Wall Street and found it boring

Previous Question: Amazon.com is currently America’s largest online retailer.  Which company dealing with office supplies is the runner up?

Answer: Staples Inc. is the second-largest online retailer.  

They have made it really convenient to buy routine office supplies online without having to drive to the store. 

Take a look at the items you buy over and over every few months and take advantage of some discounts and save some time, too. 
 

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