Introduction How Do We “Professionalize ” Our Small Business?

Question 1

What percentage of small businesses fail within the first year?

Answer 1

25 percent

Question 2

What percentage of small businesses fail within five years?

Answer 2

45 percent

Question 3

What percentage of small businesses fail within ten years?

Answer 3

65 percent

Question 4

How many small businesses are there in America?

Answer 4

33 million

Question 5

What is the main theme of the book?

Answer 5

To provide frameworks and playbooks for small business growth

Question 6

What is the purpose of the Small Business Flight Plan mentioned in the book?

Answer 6

To optimize the business for revenue and profit

Question 7

How much did the author’s revenue increase over six years?

Answer 7

Fourfold

Question 8

What is meant by ‘professionalize your operation’?

Answer 8

To build reliable and predictable systems for business growth

Question 9

What is the ‘s-curve’ in business growth?

Answer 9

A pattern where initial growth is followed by management problems leading to decline

Question 10

What happens to a business when the owner spends too much time on problems?

Answer 10

The business starts to decline

Question 11

What are the six areas addressed to professionalize the operation?

Answer 11

• Leadership
• Marketing
• Sales
• Products
• Overhead and operations
• Cash flow

Question 12

What is the first step to professionalizing a small business?

Answer 12

Cast a vision for the company with economic priorities

Question 13

What is a common reason small businesses fail?

Answer 13

A failure to identify and prioritize economic objectives

Question 14

Fill in the blank: A failure to market products with a _______.

Answer 14

clear message

Question 15

True or False: Professionalizing a business can lead to predictable operations.

Answer 15

True

Question 16

What analogy does the author use to describe business engineering?

Answer 16

An airplane

Question 17

What is the primary goal in engineering an airplane?

Answer 17

To get it to a specific destination without crashing

Question 18

What does the author suggest is necessary for a business to grow?

Answer 18

Building a machine that produces, promotes, sells, and distributes products

Question 19

What should be included in a Mission Statement according to the author?

Answer 19

Three economic priorities

Question 20

What is the role of cash flow management in a small business?

Answer 20

To protect cash flow above everything else

Question 21

What can happen if a business has bloated overhead?

Answer 21

Inefficient management and productivity

Question 22

What is a key benefit of professionalizing a small business?

Answer 22

Increased peace of mind and growth

Question 23

What is the author’s experience with outside consultants?

Answer 23

Spent hundreds of thousands of dollars trying solutions

Question 24

How long does the author suggest it may take to implement the six steps?

Answer 24

Six months to a year or longer

Question 25

What is the significance of a clear marketing message?

Answer 25

It helps to invite customers into a story and solve their problems

Question 26

Fill in the blank: The production of products that aren’t in _______ or profitable.

Answer 26

demand

Question 27

What is the primary goal in engineering an airplane?

Answer 27

To get it to a specific destination without crashing.

Question 28

What are the six critical parts of a business compared to an airplane?

Answer 28

* Cockpit (Leadership) * Right Engine (Marketing) * Left Engine (Sales) * Wings (Products/Services) * Body (Overhead/Operations) * Fuel Tanks (Cash Flow)

Question 29

What does the cockpit of an airplane represent in a business?

Answer 29

Leadership.

Question 30

What does the right engine of an airplane represent?

Answer 30

The marketing effort.

Question 31

What is the role of sales in the context of the left engine of an airplane?

Answer 31

It increases the thrust of an airplane.

Question 32

What do the wings of an airplane represent in a business?

Answer 32

The products or services you sell.

Question 33

What does the body of the airplane represent?

Answer 33

Overhead and operations.

Question 34

What do the fuel tanks of an airplane represent in a business?

Answer 34

Cash flow.

Question 35

Fill in the blank: The leadership is in charge of getting the airplane to its _______.

Answer 35

[destination]

Question 36

What must be managed to ensure a small business operates effectively?

Answer 36

Cash flow.

Question 37

What is the decision-making filter mentioned in the text?

Answer 37

The metaphor of the airplane.

Question 38

True or False: A business can grow without considering the proportion of its parts.

Answer 38

False.

Question 39

What happens if a business owner hires before the engines can support the added weight?

Answer 39

The business risks crashing.

Question 40

What is one reason most small businesses fail?

Answer 40

They lack a simple plan for growth.

Question 41

What can excessive focus on branding without sales lead to?

Answer 41

A business that looks successful without actually being successful.

Question 42

What must start-up leaders avoid when they have substantial funding?

Answer 42

Spending without wisdom.

Question 43

What does professionalizing operations help to achieve in a business?

Answer 43

Growth and efficiency.

Question 44

What should be used as a manual for business operations?

Answer 44

The Small-Business Flight Plan.

Question 45

What is an essential practice for ensuring business safety and profitability?

Answer 45

Using checklists and frameworks.

Question 46

What does the text suggest to do when spending too much time on operational issues?

Answer 46

Professionalize your operation.

Question 47

Fill in the blank: Growing a small business is about making one smart ______ after another.

Answer 47

[decision]

Question 48

What is the result of mastering the six steps that build a business like an airplane?

Answer 48

The business will fly.