How good are you at strategizing for long-term business success? Do you know what your next five moves should be?<\/p>\n\n\n\n
What do master chess players and master businesspeople have in common? Both always plan five steps ahead. Your Next Five Moves<\/em>, a book by Patrick Bet-David, argues that what distinguishes exceptional business leaders from average ones is their ability to anticipate future events and plan effectively for them\u2014ideally by thinking five steps ahead. To turn you into a master business planner, Bet-David presents five strategic steps you must start taking now: learn about yourself, improve your problem-solving skills, create a winning team, expand your business<\/a>, and position yourself<\/a> as an industry leader.\u00a0<\/p>\n\n\n\n Learn more about these five steps that can turn you into a successful business<\/a> strategist.<\/p>\n\n\n\n\n\n\n\n Entrepreneur Patrick Bet-David believes the key to sustained success in business is the ability to plan your next five strategic steps ahead of time. In Your Next Five Moves<\/em> (book published in 2020), he draws on the approach of chess masters, who always anticipate what their rivals will do and devise their next five moves to block attacks, defend their territory, and achieve victory. <\/p>\n\n\n\n Bet-David recommends approaching every activity in life with a five-steps-ahead mindset but dedicates the book to learning how to think five steps ahead specifically in entrepreneurship and business. Bet-David breaks the process of becoming a better business strategist into five steps: learning about yourself and your desires, learning to solve problems more efficiently, creating a top-notch team, growing your business healthily, and positioning yourself as a leader in your industry. In each step, Bet-David shows you how to enhance your planning and strategic thinking skills, so that, by the end of the five actions, you\u2019ll be able to create your company\u2019s own next five strategic steps. <\/p>\n\n\n\n (Shortform note: Bet-David\u2019s organization of the five strategic business steps is effective because it reflects the way businesses themselves grow. Most companies begin at a small scale and gradually scale up, adding team members, departments, procedures, and so on. Similarly, Bet-David starts his steps at a small scale\u2014personal aspirations\u2014and then scales up to consider problem-solving skills and good leadership. Another reason this organization works is that, in each step, you gain the tools you need to tackle the next step. For instance, you must know how to assemble a team before you think about becoming an industry leader.) <\/p>\n\n\n\n Bet-David believes that the first step of your strategic plan toward long-term success is to understand yourself<\/a>. Let\u2019s break this process of self-discovery into three sub-steps:<\/p>\n\n\n\n Understand who you are now because this allows you to accept yourself fully, writes Bet-David. Only when you accept yourself can you begin to confidently pursue goals<\/a> and paths aligned with your truest desires and greatest strengths.<\/strong><\/p>\n\n\n\n Once you understand who you are and what matters to you now, figure out who you want to be<\/a> in the future<\/strong>, writes Bet-David. Your strategic steps depend entirely on what future you want to achieve, so reflecting on this is key. Bet-David adds that it\u2019s fine not to know this clearly right now, as long as you dedicate energy toward thinking about the question.<\/p>\n\n\n\n Finally, pursue business ventures aligned with what your strengths are and who you want to be<\/a>, writes Bet-David. The best place to do this is in untapped markets where you have unique strengths. <\/strong>For example, if you\u2019re passionate about animals and want to start a pet supplies business, you might focus on the untapped market of pets with disabilities using your personal experience of having a dog with a disability.<\/p>\n\n\n\n Now that you\u2019ve taken the first step to understanding who you are and want to be, it\u2019s time to take the second step, writes Bet-David: learning how to solve problems<\/a> effectively. Good problem-solving distinguishes a beginner from a master businessperson and is key to success in business and life. Bet-David defines good problem-solving as the ability to think through all options, envision possible consequences of every option, and make beneficial choices based on sound information. The better you become at solving problems, the more success you\u2019ll find because you\u2019ll start thinking of ways to prevent <\/em>problems.<\/p>\n\n\n\n To solve a problem, see yourself as an active agent in it<\/strong>, stresses Bet-David. Consider how you might have contributed to the problem and take ownership of the solution. This allows you to learn from mistakes<\/a> and improve as a result of them.<\/p>\n\n\n\n Let\u2019s now turn to the two parts of effective problem-solving: <\/p>\n\n\n\n First, identify <\/em>the core problem you\u2019re trying to solve, says Bet-David. Often, the problem you think you need to solve is merely a symptom of a deeper, hidden problem. You need to figure out what the true problem is to effectively solve it.<\/p>\n\n\n\n The second part of problem-solving is to devise three possible solutions to the problem you\u2019ve identified and calculate the investment cost, time cost, and benefits each solution offers, writes Bet-David. Then, compare the calculated costs and benefits of each solution and pick the one that offers the most benefits for the lowest cost.<\/p>\n\n\n\n Once you\u2019ve learned how to solve problems well, tackle the third step: assembling a winning team, says Bet-David. To succeed in business, you must work with a team\u2014not alone\u2014and manage it well so they\u2019ll want to stick around.<\/p>\n\n\n\n Build a winning team<\/a> by completing three tasks:<\/p>\n\n\n\n Do due diligence on potential hires by asking mutual colleagues about them, recommends Bet-David. Don\u2019t trust your gut<\/a> but rather rely on hard facts that indicate whether they\u2019re a good fit. Additionally, question your initial impression of the person by asking yourself what appeals to you about them, what skills they lack, if there are red flags on their resume, and if the background check revealed anything negative.<\/p>\n\n\n\n Next, retain employees through an attractive compensation plan<\/strong>, counsels Bet-David. Compensation plans are attractive when they motivate employees<\/a> to help the company reach its goals and reward them for doing so. For example, salespeople may earn a commission on every sale they make. Determine what you want your employees to accomplish, and pay them more for doing it successfully.<\/p>\n\n\n\n Once you\u2019ve hired the right people<\/a> and incentivized them to stay, build a company culture<\/a>, says Bet-David. Culture is critical because for employees to put in their best effort, they must identify with the company and its values<\/strong>.<\/p>\n\n\n\n In the first three steps, you learned about yourself, developed the ability to solve problems, and learned how to create a winning team. With these pieces in place, let\u2019s now move on to growing <\/em>your company. According to Bet-David, there are seven parts to this growth process:<\/p>\n\n\n\n To grow, first, think about how to raise funds, counsels Bet-David. How you do this depends on the degree of control you want to maintain: The more money you raise from outside investors who then gain a stake in your business, the more control you sacrifice. Conversely, funding yourself means maintaining control but risking running out of money. Bet-David believes outside funding gives your company a huge security boost and recommends this route.<\/p>\n\n\n\n According to Bet-David, use your funds to grow both linearly\u2014through steady progress in areas like supply chains and administrative protocols\u2014and exponentially\u2014by making significant, rapid progress in areas like leadership development<\/a> and innovative business<\/a> ideas. Inspect your weaknesses and determine where there\u2019s an opportunity to grow linearly and exponentially.<\/p>\n\n\n\n The third part of growing your business is to press employees to meet the career goals they\u2019ve set for themselves, says Bet-David. This compels them to rise to the challenge and grow along with the company. Additionally, when you pressure employees to improve, they do the same to each other. This elevates the competency level of the entire organization, leading to sustained growth.<\/p>\n\n\n\n To grow as a business, you must build and maintain momentum<\/a>, asserts Bet-David. Here are two methods for doing so without letting the momentum get out of control:<\/p>\n\n\n\n Build momentum by fostering trust among employees<\/strong>, writes Bet-David. Trusting employee relationships lead to speedier internal operations, which, in turn, helps sustain momentum.<\/p>\n\n\n\n According to Bet-David, you can also build momentum by constantly devising new ways to perform faster in every area of your business. To do this, look at different speeds at the company\u2014speed of internal processes and speed of the customer purchase process, for example\u2014and shorten the duration of those processes by removing steps.<\/p>\n\n\n\n Finally, maintain momentum by planning for eventual future <\/em>growth, advises Bet-David. Do this by first thinking about what the business might need or want in the future. Then, take calculated risks that increase the chances of achieving that future. For example, in the future, you\u2019ll need to hire more employees<\/a> to expand the business. You might thus hire an HR specialist now who can onboard future employees.<\/p>\n\n\n\n To effectively grow your business, learn how to collect and use the metrics that matter to your company<\/strong>, stresses Bet-David. Metrics eliminate ambiguity or personal bias around how the company is performing, giving you a clear view of your status. This clear view then allows you to identify inefficiencies and correct them. For example, if you own a travel agency, you could start tracking how many customer complaints each of your travel agents receive. This objective statistic can help you determine which of your agents are the most and least effective.<\/p>\n\n\n\n The sixth part of growing your business is to turn your knowledge and experience into a documented system that successors can use, says Bet-David. This ensures the business can grow after you\u2019ve left.<\/p>\n\n\n\n Finally, even when you\u2019re growing steadily, always behave as though a threat could overthrow your business, counsels Bet-David. Stay alert in two ways:<\/p>\n\n\n\n Don\u2019t fall prey to temptations like gambling, excessive spending, partying, and so on, warns Bet-David. Stay on the straight and narrow to maintain momentum and growth.<\/p>\n\n\n\n Adversity will inevitably strike when you start growing rapidly, warns Bet-David. When this happens, seek the counsel of numerous people with differing perspectives and experiences<\/strong>. Ideally, find people who\u2019ve studied or personally experienced the type of problem you have. They\u2019ll give you the most valuable advice.<\/p>\n\n\n\n We\u2019ve just talked about the fourth strategic step\u2014growing your company. Now, let\u2019s turn to the last step of your strategy for sustained success: making the bold business moves that position you as an industry leader. According to Bet-David, there are two bold steps you can take: taking down behemoth competitors and acquiring negotiation skills<\/a> to apply in high-stakes deals. Let\u2019s discuss each.<\/p>\n\n\n\n Though this is a risky move that\u2019s not for every company, you can try to take on the behemoth competitor in your industry, writes Bet-David. This is possible because behemoths, once they\u2019ve grown powerful and complacent, lose agility and the willingness to work hard and take risks.<\/p>\n\n\n\nYour Next Five Moves<\/h2>\n\n\n\n
The First Step: Understand Yourself<\/h3>\n\n\n\n
Sub-Step #1: Understand Who You Are Now<\/h4>\n\n\n\n
Sub-Step #2: Understand Who You Want to Be in the Future<\/h4>\n\n\n\n
Sub-Step #3: Understand How to Get There<\/h4>\n\n\n\n
The Second Step: Learn to Solve Problems Effectively<\/h3>\n\n\n\n
The Key to Better Problem-Solving: Taking Ownership of the Problem<\/h4>\n\n\n\n
How to Solve Problems Effectively<\/h4>\n\n\n\n
Part 1: Identify the Core Problem<\/h5>\n\n\n\n
Part 2: Solve the Problem With Cost-Benefit Analysis<\/h5>\n\n\n\n
The Third Step: Create a Winning Team<\/h3>\n\n\n\n
Task 1: Hire the Right People<\/h4>\n\n\n\n
Task 2: Retain the Right People<\/h4>\n\n\n\n
Task 3: Build the Right Culture<\/h4>\n\n\n\n
The Fourth Step: Grow Your Business the Right Way<\/h3>\n\n\n\n
Part 1: Raise Funds<\/h4>\n\n\n\n
Part 2: Find Ways to Grow Both Steadily and Aggressively<\/h4>\n\n\n\n
Part 3: Press Employees to Grow Along with the Company<\/h4>\n\n\n\n
Part 4: Build and Maintain Momentum<\/h4>\n\n\n\n
Method #1: Build Internal Trust <\/h5>\n\n\n\n
Method #2: Always Focus on Increasing Speed<\/h5>\n\n\n\n
Method #3: Plan to Maintain Momentum in the Future<\/h5>\n\n\n\n
Part 5: Track Your Growth Using Metrics<\/h4>\n\n\n\n
Part 6: Put Your Knowledge Down on Paper For Posterity<\/h4>\n\n\n\n
Part 7: Stay Alert As You Grow<\/h4>\n\n\n\n
Way #1: Don\u2019t Cede Control to Temptation or Your Ego <\/h5>\n\n\n\n
Way #2: Obtain the Input of Experienced Business People<\/h5>\n\n\n\n
The Fifth Step: Position Yourself as an Industry Leader<\/h3>\n\n\n\n
Take Down Behemoth Competitors in Your Industry<\/h4>\n\n\n\n
Negotiate for Sustained Success<\/h4>\n\n\n\n