The back cover of Gino Wickman’s book Traction poses a powerful question:
The entrepreneur’s vision gives birth to a business. Traction makes the vision real. Earlier in this series, we covered five components that are necessary to get the business moving in the right direction: Vision, People, Data, Issues, and Process. This article summarizes the sixth component, Traction.
Traction enables the entrepreneur to gain a grip on the business. Traction is so important that Wickman’s entire book was named for this single component of EOS.
Consistency is one of the most effective tools we can use to keep customers coming back for more. When first-time customers become repeat customers, revenue explodes (in a positive way). Customers trust brands like Starbucks, Apple, and Google because expectations and delivery are consistently aligned.
How does a company achieve consistency? Through processes.
From The Issues Component chapter of the book Traction:
Problems are like mushrooms. When it’s dark and rainy, they multiply. Under bright light, they diminish. In an organization where there is nowhere to hide, the problems are easily illuminated. EOS will create that strong light.
Time to shine the light, find the issues, and solve them.
Traction’s chapter on The Data Component describes a pilot flying over an ocean. During the flight, the pilot announces:
I’ve got bad news and good news. The bad news is that our gauges are broken. We don’t know how fast we’re flying or in what direction, and we don’t know our fuel level. The good news is that we’re making great time!
An entrepreneur needs data to run a business, just as a pilot needs gauges to fly a plane. Data makes progress visible, and data also tells us when course corrections are needed.
Anyone who invests in commercial real estate (CRE) is buying a multi-million-dollar business secured by real estate. A successful business will generate a profit. A wise investor will be reasonably sure of profitability before investing.
Nashville: Thank You!
The Nashville Multifamily Meetup Group hosted an underwriting discussion, and they invited me to present. Thank you Josh Cooper and Tommy Brant for making it happen!