MACKEY’s Prosperity Ladder: A Systematic Progression Toward Your Grandest Goals
By Sarah Grace Mohr, COO of MACKEY
We are all about supporting your Big, Hairy, Audacious Goals (BHAGs). But we’re not just about encouraging you to reach for your dreams, we’re also about helping you make those BHAGs become a reality.
That’s an important distinction. And one that can create some frustration.
Look. To be clear, I love a good goal setting session. And I certainly understand what it feels like to set those big goals and get pumped as you imagine them come to fruition.
But most BHAGs don’t happen overnight. (If they did, would they be considered hairy and audacious? Unlikely.) BHAGs require a lot more perseverance than we like to admit in that pie-in-the-sky, dream-big-dreams phase of the goal setting process.
Sometimes at MACKEY, we encounter a client who is so excited about their big dreams that they want to just jump to the actualization stage. And while that sounds wonderful, it’s not often possible.
Achieving those lofty dreams isn’t just about willing them into existence. It requires proper planning and a roadmap. We’re often the ones driving those hard, reality-check conversations with our clients. And that’s often where our value lies — we aren’t afraid to tell it like it is.
It’s not always what our clients want to hear, but it is what they need to hear. We don’t just validate goals; we help business owners achieve goals.
Here’s the exciting news: those big, hairy, audacious goals are possible. (We mean it — really!) Following The Prosperity Ladder will help you get there.
The Prosperity Ladder is a systematic progression through five stages (or rungs), which bring focus to achieving your entrepreneurial goals. We designed this framework to help business leaders reach their most ambitious plans.
In this article, I explain all five rungs of the ladder, helping you understand how each step will scaffold you toward your aspirations.
1. Data
Accurate data is a non-negotiable essential to any business.
We continuously harp on the importance of data because — well — it’s important. It’s certainly possible to get lucky and create a profitable business without having metrics to inform your growth. But your shoot-for-the-moon impact goals simply aren’t possible without a strong data-driven foundation.
Data is an essential part of wise decision-making. Intuition is certainly an important aspect of entrepreneurship, but the real magic happens when those gut instincts are combined with quantifiable information to validate your next move.
Many think data is a sunk cost — that data’s just something you need to file your taxes or apply for a loan. But your data is your most impactful tool.
To use that tool, you need to ensure your data is accurate, timely, and talking to you.
When you invest time into developing good data, it reveals where you are. And once you know where you are, then you can figure out how the heck you’re going to get where you want to go.
2. Cashflow
Cashflow confidence occurs when you can easily understand your cash position and consistently cover your expenses.
“Cash rules everything around me.” Rap lyrics from the beloved Wu-Tang Clan or sage advice for entrepreneurs? Maybe both.
OK, ok, so there’s more to life than cash, but without cash, it’s significantly harder to reach for the ethereal. Without cash, you’re out of business. Period.
When we think about Maslow’s Hierarchy of Needs and apply it to goal setting, the importance of cashflow reveals itself.
Abraham Maslow believed that for humans to achieve the abstract: self-actualization, esteem, love, and belonging, they first needed to achieve the more tangible. Food, shelter, and safety must come first. Without the basics, we lack the psychological capacity to attain much else.
Now take this concept and apply it to the business world. Before you can dream about using your business to change the world, you first need to know, with confidence, that you can consistently make payroll. When you understand your cash headroom, that’s when you’re ready to move up the ladder. Why? Because cashflow brings clarity.
3. Profit
Ensure your risk is being adequately rewarded and you’ve got plenty of income to fuel reinvestment.
Not revenue. Profit.
From an owner perspective and from a business health perspective, revenue and sales don’t really matter. If you’re not making a profit off of your sales, then why are you working so hard? If your business isn’t feeding you back with some degree of profit, then that’s a problem.
When we run on fumes — by breaking even or generating a minimum profit — we burn out, we underinvest in our employees, and we fail to grow our company. Everybody loses.
Ensuring profit is the owner’s way of putting their oxygen mask on first. Profit allows for endurance, which makes way for the reason most clients reach out: owner lifestyle and impact.
4. Owner Lifestyle
Harness the economic power of your business to live the life you’ve always imagined.
Does this ring a bell?
- I’m running a mile a minute.
- I’m working so much that my family doesn’t know me anymore.
- Things are coming off the rails.
So many of our clients come to us with a lifestyle problem. But fixing these significant lifestyle pain points can’t happen without addressing the first three rungs of the ladder first.
We can’t, in good conscience, recommend that you set a hard stop for yourself at 5pm everyday if you don’t know where your next client payment is coming from.
Data, cashflow, profit — and all the structures that support those areas — allow you to redefine owner lifestyle.
When you have more profit, you have more choice. Suddenly, the conversation shifts from, How do I make payroll? to Do I reinvest in my business? Do I invest outside of my business? Traditionally? Non-traditionally?
Personal planning can come into play at this stage in the process along with understanding not just how you’re building your business but how your business is fueling your life.
5. Impact
What mark are you making? What do you want to give back to the world? Plan. Execute. Amplify.
We used to call this rung ‘legacy,’ but there are a few problems with that approach, one of which is that legacy implies finality. But many owners reach the impact rung long before they’re ready for an exit. Having an impact isn’t just about what you’ll leave for others when you’re gone, it’s about what you’re doing in the here and now.
To be clear, you can implement an impact goal whenever you want. We just don’t necessarily recommend it. If you decide to donate 5% of your top line to an organization near and dear to your heart, you can do that. You’re the owner, so you can (theoretically) do whatever you want. But your actions have consequences.
Don’t cut off your nose to spite your face. If you lack the proper systems to support your impact goals, your big heart will pull away at your resources and place unintended strain on your business.
Don’t become a martyr to your impact. Impact goals should elevate everyone — yourself and your business included. Not only does this protect you and your team, but it also allows for a sustainable approach to making a difference.
Your Systems Set the Standard
In Atomic Habits James Clear writes, “You do not rise to the level of your goals. You fall to the level of your systems.” The Prosperity Ladder is all about ensuring that your systems are designed specifically for achieving your goals.
It’s not always a straight shot up. Things happen. Sometimes you may need to climb back down a rung or two, adjust, and resume your climb. But when your systems are built with your goals at the core, even a step back is a step toward achieving your biggest of dreams.
Ready to start climbing your own prosperity ladder? Book a free consult with us today!
