The Key to Planning BIG HAIRY Goals for 2024

Ready to transform your trade business in 2024? Join Andy and Ange in this episode as they unravel the power of BHAG Planning – setting Big, Hairy, Audacious Goals that will redefine success for your company. Discover the essence of BHAGs through real examples from industry giants like Microsoft, Amazon, and SpaceX. This isn’t your ordinary goal-setting; it’s about crafting a vision that excites your team and sets you apart from the competition. 

In this episode, you’ll learn:

  • What BHAG (Big, Hairy, Audacious Goal) planning is and why it’s crucial for your business growth.
  • The secrets behind crafting a BHAG that stimulates progress and sets your business on an extraordinary trajectory. 
  • Examples of BHAGs from successful companies and how they revolutionized their industries.
  • Practical tips on creating your BHAG, making it clear, compelling, and aligned with your company’s values. 
  • The role of BHAGs in guiding your business strategy and fostering team collaboration.
  • How to reverse engineer your BHAG into achievable milestones for the next 12 months.

Dive into the world of BHAG Planning and elevate your business to new heights in 2024. Don’t just dream; be the tradie who turns dreams into reality. Tune in now and set the stage for your most extraordinary year yet!

Ready to take the next step?

Join us for our new LIVE 1-day event in your nearest city. 
Lifestyle Tradie On Tour is a game-changing event designed for trade business owners like you. Learn, grow, and connect with other industry leaders.
 
Visit www.LifestyleTradie.com.au/events to secure your spot. 

Let’s make 2024 a year to remember!

Andy
 Dreaming big isn’t just for the dreamers. It’s for the doers, the tradies turning those dreams into reality. Today, we’re not just planning for another year. We’re setting the stage for extra, I’ll say it again, extraordinary 2024  with big hairy, audacious goals.

Ange
Yeah, these aren’t your everyday goals. They’re the kind that push your limits, challenge your norms, and set you up for a year of unprecedented growth. 

Andy
It’s about looking at 2024 not just as another year on the calendar but as a canvas for something truly amazing.  

Ange
So let’s redefine what’s possible and transform the way you see your business this year.

Andy
You’re listening to The Tradie Show. This is the podcast for trade business and contracting bosses like you who want to lead with confidence, make more profit and create a better lifestyle. 

Ange
We’re your hosts, Andy and Angela Smith, husband and wife team and co-founders of Lifestyle Tradie. Are you ready to have some fun?

Andy
Hell yeah! 

Ange
Before we dive into today’s episode, we’ve got something super exciting to share with you. Our goal is to guide you on the path to becoming a successful trade business owner where you are both streamlined and systemized all while making profit without the need of you being involved on a daily basis.

Andy
Yep, we’ve lived the rollercoaster of having to rebuild a broken trade business and we’ve come out the other side stronger for the experience. And we’re excited to share those lessons with you. 

Ange
Yeah, we are, which is why we’re thrilled to invite you to Lifestyle Tradie on Tour. This isn’t just any event. This is absolutely game changing for your business. 

Andy
Plus, there is no better way to learn more about your business than in a room filled with other smart cats. And we are super pumped about the opportunity to meet you all face to face. We’re keen to shake your hand and hear your story and offer personalized advice.

Ange
Yeah. It’s a day packed with practical strategies from profit growth to mastering your marketing. We’re also going to discuss the impact artificial intelligence or AI will have on our industry in the not so distant future. Are you interested? Trust me, you should be. It’s all designed specifically for the trades industry.

Andy
So what are you waiting for? Jump onto LifestyleTradie.com.au and secure your spot for Lifestyle Tradie on Tour, or click the link in the show notes. It’s your opportunity to transform your business journey. 

Ange
2024 is your year to shine and it starts with Lifestyle Tradie on Tour. Let’s make it a breakthrough year together.

Andy
Absolutely. See you there for a day of learning, growth, and face to face conversations.  It’s that time of year when many businesses are sitting down to set goals for the next 12 months. Some might have already done it, but typically January is when a lot of business owners do this. 

Ange
Well, we actually think you should be setting goals before the year even starts to be fair, but that’s a discussion for another day.

Andy
Well, the fact of the matter is every company should set goals. So whenever you do them is better than not doing them at all. 

Ange
Yeah, true. Done is better than perfect. 

Andy
But it’s not just about setting goals and then forgetting about them like so many people do. It’s about crafting targets that really set you apart from the competition and you can get your whole team fired up baby to chase them down. 

Ange
And that’s why we want to introduce you to a concept today called your big, hairy, audacious goal or BHAG for short. 

Andy
Setting your BHAG is not just any goal though. It’s a major stretch goal for your entire business. It’s a goal that probably scares the crap out of you. Look, it isn’t just some trendy business jargon bullshit we’re throwing out there. The concept of BHAG was introduced by some really smart blokes a long time ago. Who wrote a book about companies that succeed and last a really long time. 

Ange
Yeah. Those blokes are these two guys named Jim Collins and Jerry Porras. And the book is built to last successful habits of visionary companies. So this concept of theirs, BHAG, or what we’re talking about, big, hairy, audacious goals, it actually revolutionized the way businesses thought about goal setting worldwide. There is no better time than now to actually introduce this to the tradie world.

Andy
So let’s be honest. Most tradies, the thought of planning and yearly goal setting can be a bit overwhelming. You may even find it boring, but if you want to grow your business this year, it’s definitely got to be done. 

Ange
Yeah, I agree with you. It is overwhelming and it can actually be boring in parts, but that’s why I actually really like this BHAG concept. 

Andy
It’s actually scary, isn’t it Ange? How many guys who have been in business for many years, some for decades, that I do any goal setting at all, not yearly, not monthly, not even weekly. And, and as a result, the majority of these businesses are really stagnant and they are just not growing to their true potential. Why do you think that is? You know, why do these guys just not do goals? 

Ange
Well, I believe one of the key reasons goes back to most tradies, not actually ever having any business training, say, and if you do have some business smarts about you, a lot of the time you’re actually just so caught up in the daily grind that you hardly have any time to scratch yourself. You’ve been there, right? 

Andy
Oh yeah, baby. I remember head down, bum up in business, swamped in managing the day to day stuff. You know, trying to plan for the future felt like trying to juggle with one hand tied behind your back. It was almost impossible. We did do our planning anyway because I knew the impact it would have on our plumbing business. But for many tradies, it’s just one of those things that it’s like, Oh, let’s just do it later.  

Ange
So if you’re one of those, I’ll do it later guys, then how do you break out of the cycle and how do you actually set proper goals? 

Andy
Well, firstly, you have to be willing to put the tools down and, and set aside some time to do goal setting. And there’s no hacks or tricks with this one. I’m not saying do it right now, but this is your G up to schedule it into your calendar because it’s bloody worth doing it. And if you have to schedule your business partner in the calendar as well, then do that as well. Then to answer your other question, Ange, the way we get you to set proper goals is by coming up first. You’ve got to come up with these big hairy audacious goals that we talked about. 

Ange
Yeah. So there are several different ways to create this type of goal, which we’ll get into in a minute, but let me preface it with this. This specific type of goal setting is done by the most successful companies around the world. So it is important, right? I’m talking about companies like Amazon, Nike, Tesla, and even Facebook. So, Andy, maybe you can define what exactly is a big hairy, audacious goal. 

Andy
Absolutely. And it’s a clear, compelling goal that seems really unreasonable and potentially out of reach, but it’s something inside of you that’s bold enough and crazy enough for you to believe you might just be able to achieve it, anyway. Because you know what BHAGs are aimed to separate the great companies from the mediocre ones. 

Ange
Think of your big hairy audacious goal as maybe Everest and everyone on your team is on board and excited to attempt to climb to the summit. And you use this BHAG as your guide for company direction during the year. If you need to make any decision, you just need to ask yourself, is this getting us closer to our BHAG? 

Andy
And here’s just a little bit of a guide to follow when you’re creating your own BHAG. It must feel like it’s 70 percent achievable and it has to be clear and compelling and it must expand your company’s current capabilities and make it measurable. You’ve got to make sure it’s aligned with the company values and strategy and Your big hairy audacious goal is your long term company goal as well.

Ange
Can I just take you back a sec? You just said  70%. Can you explain the whole 70 percent thing? Like why do we want a goal that we may actually not achieve?

Andy
Well, essentially it makes your business better. The sheer boldness of your goal is a strategy to stimulate that progress. It essentially forces you to massively improve in order to achieve your goals. 

Ange
So even if you don’t achieve the goal a hundred percent, you’ve still improved dramatically, right? So smart.

Andy
Yes it is. So I’ll tell you what, Ange, can you give us some examples of BHAG from well-known companies? 

Ange
Yeah. Well, probably the most famous BHAG from the business world is Bill Gates’s famous vision for Microsoft back in the eighties. He was a computer on every desk and in every home. 

Andy
Wow. And I mean, like goals couldn’t get any bigger or hairier than that, could they back in those days. And at that time, some of these computers still filled a whole room. 

Ange
Yeah, exactly. And that’s the point. So in creating a clear BHAG, Gates actually did two things. He actually shifted Microsoft’s focus from these short term goals such as exclusive licensing deals with, say, a single company. And it actually turned it around so it forced his team to ask bigger questions like, how can we create an operating system to license for mass consumer use? Then there’s Amazon. So let me give you another one. So years ago, their BHAG was every book ever printed in any language, all available in less than 60 seconds, which might I add, they’ve actually achieved with online books. 

Andy
Huge, huge. And then you’ve got these days, Elon Musk’s SpaceX and their BHAG is enabling human exploration and settlement on Mars. Now, come on, that’s a pretty big hairy audacious goal. 

Ange
Yeah, totally. There are a few different styles, actually, of BHAGs. In fact, there’s four. So your BHAG can be maybe target orientated where you set a number. So for example, you could say become a billion dollar company by 2030. 

Andy
Ooh, a billion dollar company. That is certainly a big one. 

Ange
Or you could have a competitive BHAG, like back in the day, Nike’s goal was literally to crush Adidas. Funny, though. 

Andy
Oh, wow. That’s crazy. And you could have a role model type goal, and this is where you mimic traits of another successful company outside of your immediate competition. For example, there was a bike company called Gyro Sports Design, and they set the goal as to become the Nike of this cycling industry. Maybe you want to be the Nike of the plumbing industry or the landscaping industry or the building industry, but it’s a way of setting your goals to be a role model.

Ange
Yeah. Or the fourth one is you can focus on an internal transformation. So two of our Lifestyle Tradie members, Jamie and Tom Dale turn their company from a plumbing business to a multi trade business. They even actually changed their company name from J&T Dale to Dynamic Tradies Plumbing and Electrical so that the future business wasn’t wrapped around them specifically.

Andy
So what would you like your company’s big hairy audacious goal to be? You know, in your wildest dreams, what would you like to accomplish?  

Ange
You really need to take the time to do this yourself. Don’t you? And while I’d love to turn this into a masterclass, I’m conscious you’re listening to this maybe while you’re driving or you’re doing something else. But when you do get a chance to sit down and do this, maybe write out what your company will look like when it’s operating at a level that achieves your ultimate success. What I mean by that is what’s the benefit for your customers? What’s the benefit for your employees and even your shareholders? Like paint this mental picture for yourself and for your team. 

Andy
Then once you are aligned around these visions, start discussing and brainstorming your visionary BHAG. I mean, you want to end up with one clear, compelling and measurable goal. Then when you have your final goal, ask yourself some questions to make sure it’s the best BHAG you can do. 

Ange
Okay. Let me come in with those questions then. Because ideally you want to answer yes to all of these three questions.

Andy
Yeah. 

Ange
Do you find this BHAG exciting? Is the BHAG clear, compelling, and it’s easy to grasp? And the third question is, is the BHAG aligned with your values? They’re the three questions you need to ask yourself. 

Andy
Also, make sure you are coming up with something straightforward. You know, don’t make it some wanky, complicated statement. Like, keep it simple, Sam, and easy to understand. 

Ange
Yeah. So, when you Do come up with your big, hairy, audacious goal, well, what’s next? Like, what do you do with it and how does it help you plan for the future? 

Andy
Well, this main goal helps you with reverse engineering your next 12 months. You’re breaking your big, hairy, audacious goal into a journey of achievable yearly or monthly milestones. You know, think of it as your business GPS, like it’s your guiding light. It’s guiding your strategic moves and where you put your resources to. 

Ange
Yeah, absolutely. So every year or month is a chapter in this specific journey to actually get to your big, hairy, audacious goal, right? So your work back plan takes that goal and distills it into these clear objectives. You’ll actually be able to see exactly what, maybe initiatives or the projects and the targets that you have on your horizon literally for the next 12 months. 

Andy
You know what? This isn’t just helpful. It’s crucial. It’s about having laser focus, ensuring every effort you make counts towards that bigger picture. But here’s the real power of aligning your BHAG with a work back plan. It’s about getting everyone on your team on the same page. It ensures that every part of your team is not just working hard, but working towards this common vision that you’ve created. 

Ange
Yeah. It creates a shared sense of purpose, right? So let’s not forget though, the business landscape is actually always changing. So your work back plan isn’t set in stone. Like you really do need to be a bit flexible, but what it does do, it allows you to navigate the waters of market shifts and lots of internal changes. 

Andy
And that’s why we also recommend regular check-ins. And you know what, you can make adjustments along the way to keep you agile and on course. It’s not just about creating sets to get tasks and goals. It’s about adapting and thriving on the journey towards your big hairy audacious goal.  

It’s tradie dilemma time and this is our Q and A segment where we let you ask us what you’re having trouble with in your business and we give you our best advice.

Ange
Okay. So today we have a question from Gary, who’s a plumber in Victoria and he writes, it’s the new year and I’m looking to get my vans wrapped with all my new branding. I’ve never wrapped my vehicles before, I’ve always just had like really simple sign writing in the past. My question is, what things should I think about? I want my brand to stand out and look really different against all the boring vans out there. 

Andy
Great question, Gary. It really is. And I suppose the biggest thing for your vans is, you know, it’s that old story that when you have one van, people think you’ve got two vans and when you have two vans, people think you’ve got four vans. And when you’ve got three or four vans, people think you have 12 vans. So it really makes you look at bigger business and everyone’s seeing you all around your area that you work. But the biggest thing is it’s got to have some type of shock factor, something that’s really eye catching. And today with these wraps, some people have been doing some amazing stuff. So you need bright colors, you know, you may even have a logo, but the biggest thing for me is the company name has to really stand out and the contact details. I mean, they’re the two biggest things that everyone’s getting these days, aren’t they? I mean, Ange, the old days of putting your website on your van. I mean, people just Google your company name. Now, do you, do you actually think you need that still? 

Ange
No, I personally don’t. I think we need to get back to why do you even put any of your branding on your vehicles? I think in this industry, we have this great opportunity that you have literally a driving billboard that we absolutely need to take advantage of. So, you know, maybe we need to be moving into putting something like a QR code on the side of the van or on the back. Yeah. Because the whole point now is, why get people to remember your brand name? So that they then go and Google you because they want your trade. You end up getting a job out of it, right? That’s the point.

Andy
And at the end of the day, you just want people to immediately recognize your brand. So when they do need work, they remember you and your trucks need to reflect this.  

Hey guys, thanks for listening to today’s episode. I just wanted to ask you a quick favor. We’d love it if you could rate and review this podcast. It would mean the world to us. And as always, we really appreciate your support.

Subscribe to The Tradie Show, wherever you get your favorite podcasts.  Rate and write us a review or for more information about Lifestyle Tradie, head to LifestyleTradie.com.au.

KPI’S FOR YOUR TEAM

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