Ep 17: Renee aces achievable goals

[00:00:05] Christina Wallace: So, knowing what your ultimate goal is will help you say, well, if it's this versus that, I know which one wins. But having that goal isn't enough. You need the mechanism for how you're gonna achieve that. And mechanism can mean a lot of different things. It could mean you have the resources to do that. I didn't just set a goal, but I ensured that I have the people and the money and all of the people around the table, I need to pull this off. It could also mean I've got the tools, the frameworks, I have the knowledge that I need in order to go and achieve this goal.  

[00:00:38] HOST: Hi, I'm Andrea Marquez and This is Small Business -- a weekly podcast brought to you by Amazon. This show is all about learning how to start, build, and grow your small business. At the end of every episode, I like to call out key lessons learned so you can apply them to your own small business journey.  

I want to thank those of you who have reached out to use with episode ideas, and reviews through email at [00:01:00] thisissmallbusiness@amazon.com One email from Justine said: “I am starting my own business. I am in the process of setting up my business plan and I have very much enjoyed listening to your podcast. I have found the sessions easy to listen to and very informative. Thank you.” … well Thank you! Justine, for listening to This is Small Business.  

Something that I noticed is often overlooked when starting a business is not only setting goals, but also making sure you have the right mechanisms in place in order to achieve these goals in the most efficient way possible. And this is something that I'm sure everyone has gone through, even if you're not a business owner. I know we all have goals, and the bigger the better right? But how can you make sure your business is on the right track of achieving that goal, especially if it's going to take a while to get there? And how do you set up the right mechanisms that allow you to achieve these goals?  

Coming up, I'll talk to Christina Wallace, a senior lecturer [00:02:00] at Harvard Business School where she teaches entrepreneurship and marketing. You’ve heard her on the show before on episode 14 of TISB, which is episode 2 of season two, where she talked about the top three business mistakes early-stage entrepreneurs make. So make sure to also give it a listen if you haven’t already.  

Before we speak to Christina, I want you to meet business owner Renee Manzari, Founder and CEO of Livity Yoga. She's a yoga and Earth Lover who is passionate about positively altering the future of this planet and exploring circular solutions. And she has some pretty amazing but huge goals she's trying to reach so I'm sure she'll have some valuable insights on setting up goals and the mechanisms to meet them.

[00:02:45] Andrea: Renee Manzari, thank you so much for being on This is Small Business. It's a pleasure to have you.

[00:02:50] Renee Manzari: Thank you so much for having me on your show, Andrea.

[00:02:52] Andrea: So let's jump right into it. Tell me about Livity Yoga and how it came to be.

[00:02:56] Renee Manzari: My background is actually in investment banking, [00:03:00] but I started Livity Yoga for a very personal reason. After I fell ill, I started to live a healthier lifestyle, which included yoga, but the more I did yoga and the more I bought yoga products, the more I realized that plastic products such as yoga mats were adding to the ongoing plastic pollution crisis. So I decided to create a brand of yoga products. However, I soon realized that sustainable just wasn't enough and it was a meaningless term, and we needed radical solutions to really face the problem with climate change. And so I decided to just dig deeper and do some more research. And so I came across the circular economy, and what that means is that you are designing your products using reclaimed materials and ways so that it can be reused over and over again, as well as designing your products to last longer [00:04:00] because there's no way to make something green without making it last longer, and that's where we are today. We are best known for our cork yoga mat, which is very versatile. It's not just for yoga, it's actually for Pilates, as well as other exercises, and most of our product is actually made from Cork, which means that you can actually use it for very sweaty workouts. And most of our products can be found on our Amazon website.

[00:04:27] Andrea: And from what I've seen, your products are really pretty, so no one's giving up on the aesthetics in order to be sustainable. And I love that your products allow people to work on themselves while also helping the planet out by not contributing to waste. So, we're here to talk about setting up mechanisms and goals in a way that prepares your business to be successful. But before I even get to that, can you just tell me a little bit more about what it means to be a small business and to be part of the circular economy?

[00:04:57] Renee Manzari: Yeah, so we're building a [00:05:00] hundred percent circular yoga brand, and what that means is that we are intentional with our design. It's not just about making products that are sustainable, but also being intentional with the designing products to last longer, but also using reclaimed material so that it can be used again and again. To do this, we have partnered with TerraCycle as well as select yoga studios as collection points to collect recycle, as well as upcycle unwanted yoga mats, as well as other sporting goods so that we can upcycle it into new products that we're developing. But I just believe that with respect to having a sustainable business model, it does require more steps. It does require higher expenses. However, we are proud to do that.

[00:05:48] Andrea: I admire that you take pride in having a sustainable business model even if it comes with higher expenses and a lot more effort. I want to dig deeper into what makes it so hard. [00:06:00] Because I know that a lot of small businesses have to weigh this option of, do I wanna do this, be sustainable and really make an impact even though it's going to cost me a lot more? Or do I prioritize making a profit and all the other things that I need to do to get the business off the ground, because it's not easy to do that and then worry about the sustainability aspect later?

[00:06:22] Renee Manzari: Yeah. I must say it is more expensive and more time consuming because you have to find the right materials, you have to find the right design for your products, even find the right manufacturers that are sustainable, but also aware of your environmental goals and can supply the sustainable materials that you need for your products. There's also a higher expense with respect to the material cost because manufacturers that do supply eco-friendly products, they tend to charge higher. And there's also other expenses with implementing a green business model. However, what I [00:07:00] would say to other businesses that are considering implementing a green business model, you don't have to do everything at once. I know I've actually been approached by other companies, by offsetting or, you know, doing other green activities for our business. But I believe that once you do things from the beginning were designing your products to be sustainable, start from there. And then you can look at other sustainable initiatives and goals for the near future, but you don't have to do everything at once.

[00:07:28] Andrea: That's great advice. Now that we understand what Livity Yoga does - your mission, priorities, and the importance of social and environmental impact to the brand - let's talk about mechanisms and setting goals. I'm sure a lot of our listeners will agree with me, but the word “mechanisms” sounds super corporate-y. It's just not a word that I use in daily life. So before we dive into mechanisms which are the things we can do to achieve goals, could you talk to me about goal setting? [00:08:00] How do you decide on the goals that you wanna set for your small business?

[00:08:05] Renee Manzari: Well, I believe that it's important to set big picture yearly goals, as well as short term goals in order to ensure that your brand continues to evolve as well as achieving the goals that you have set. Our goals are always set around our mission to give back to environmental nonprofits through our partnerships. We also set, of course, Quarterly KPI objectives. I also set metrics around each of these objectives as well as timelines and action plans around them so that I can hold myself accountable, ensure that I achieve these goals and also keep track of them.

[00:08:53] Andrea: Can you give me an example of a short term and long-term goal that you've set for Livity Yoga?

[00:09:00] Renee Manzari: Okay, so our North Star metric actually involves around diverting a million yoga mats from landfill by 2026, and with that wider north star, you know, goals. We actually do set KPI objectives - at most five KPI objectives. Of course, we do set objectives with respect to sales, marketing, product development, as well as giving back, but they're all support our North Star goal with respect to how much plastic waste or yoga mats that we divert from landfills. And so with respect to that high level goal, we will break it down into the five key objectives, and of course, set different tasks. And of course, I use my calendar. I would also set projects around each of these objectives and track the progress of those objectives using whatever tools that I use.

[00:10:00] HOST: That’s an ambitious goal! To restate here, Livity Yoga’s North Star goal is to divert a million yoga mats from landfill by 2026, and attached to that they have KPI objectives in terms of sales, marketing, product development, and giving back, that will help them achieve that North Star. So being very clear about what the North Star of your small business is, sounds like a key first step to setting the rest of your goals.  

[00:10:25] Renee Manzari: I think your North Star should be what your vision is for your company, whether it is within the next 10 years or even five years. And for us, we set our North Star in terms of how we envision our company and we always envision our company to be a brand that was not just focused on sustainability but created a movement around sustainability. Created a movement around the circular economy, and that's where we started in terms of setting our North Star. [00:11:00] And, uh, with that we devise shorter objectives in order to achieve that North star goal.  

[00:11:08] Andrea: So in terms of setting up mechanisms to achieve these goals, you work back from what your ultimate dream for your business is, and then break it down into things that are achievable.

[00:11:18] Renee Manzari: Exactly. You have to start with the vision because the thing is, during the day and during the weeds of everything, there's always gonna be distractions. There's always gonna be new ideas, but how do you prioritize what is important? You have to stay focused on your North Star because there are things that they'll be nice to do, but it doesn't align with your vision or your North Star. And so those are the things that you say no to because there's gonna be so many competing priorities. But you have to learn to know what to say yes to and what to say no to. And how you find alignment is based on your North Star.

[00:11:52] Andrea: Is there anything else you’d like to say about being a small business owner?

[00:11:55] Renee Manzari: I would actually say that. You're not always gonna know everything. [00:12:00] And I thought that, I think I felt inadequate as a business owner in the beginning, but I soon realized that it's okay to experiment. Experiment with your business, your business model, your pricing, your products, and being a business owner is a learning process. You don't need all the skills. You're not gonna know everything, but you actually do learn along the way. You learn about the business world. And I also found that during these times, the environment is really changing and so it's really good to always evolve and adapt and so it doesn't make sense to stick to one thing. I think it is great to always continuously learn and grow and develop new skills, and it's okay to change, you know, change your mind and make mistakes and do things all over again.

[00:12:57] Andrea: Renee, thank you so much for your time and for everything you're doing. [00:13:00] I am just very excited to see you meet your goals and that I got to hear about all of the mechanisms that you've done to work towards that.  

[00:13:08] Renee Manzari: Thank you so much for having me.

[00:13:11] HOST: You're listening to This is Small Business, brought to you by Amazon. I’m your host, Andrea Marquez. That was Renee Manzari, Founder and CEO of Livity Yoga. You can find out more about her company in our show notes on our website: Thisissmallbusinesspodcast.com.

Speaking to Renee about setting goals and mechanisms for your small business has me feeling super motivated to set my own goals and mechanisms for my non-existent small business. In order to achieve things, you first need to know where you’re going. What’s your aim?  I'm sure -- like Renee -- you also have huge goals that you want your business to achieve and having mechanisms in place could help you focus on your goals and it could even make bigger goals seem less intimidating and easier to take on.  

My next guest is Christina Wallace, a senior lecturer at Harvard Business School [00:14:00] where she teaches entrepreneurship and marketing. We've had Christina on the 2^nd episode of our 2^nd season of This is Small Business - after this episode - you should definitely check out if you haven't already. Christina takes us through the top 3 business mistakes early-stage entrepreneurs make. She has a wealth of information on businesses so for those of you who haven't listened to her before, I'm excited for you to meet her.

[00:14:25] Andrea: Let's start from the beginning, as a small business owner, why is it important to not only have goals, but also set mechanisms to meet them?

[00:14:33] Christina Wallace: So you have to have goals. They don't have to be any specific goal, but you need to know what you're driving toward, right? So strategy without tactics. Terrible choice. Tactics without strategy, also a disaster. Sun Tzu has some great quote on this in the Art of War, but I'm really over the war metaphors in business, so take my word for it. The point of this is you have to know not only where you're going, but what matters most when you face tension. [00:15:00] Right. Where are you gonna make the tradeoffs? So, knowing what your ultimate goal is will help you say, well, if it's this versus that, I know which one wins. But having that goal isn't enough. You need the mechanism for how you're gonna achieve that. And mechanism can mean a lot of different things. It could mean you have the resources to do that. I didn't just set a goal, but I ensured that I have the people and the money and all of the people around the table, I need to pull this off. It could also mean I've got the tools, the frameworks, I have the knowledge that I need in order to go and achieve this goal. So whatever that piece is that you need, that allows you to get there, you need to ensure that you don't just have the dream, but you've done the work to ensure it is achievable.  

[00:15:47] Andrea: All right, so let's talk about goal setting first. How do you decide what goals you should set for your small business if you're in the beginning stages?

[00:15:56] Christina Wallace: So a lot of this comes down to your priorities, [00:16:00] and this is gonna be an incredibly personal process for you and whoever else, the stakeholders that you have in your business, whether it is a co-founder or investors or even employees that you feel like are an integral part of how you design what is gonna come up the next year, three, five, whatever you're driving toward. But ultimately you start from the why. What is your mission? What are you here to do? And then you back solve. Now that you know why you show up in the morning, what do you care about in the next, call it three to five years? What are your strategic priorities? And then you back solve from that. Okay. You know what you're going toward. What are the activities that you're going to put in place that will get you closer to those priorities?  

And then the very last piece of this, which is crucial, you have to have a specific metric. How will I know that I reached that goal? And this is the sort of thing that at the end of the year, [00:17:00] it should be a very clear yes or no. If you set a metric where you get to the end of the year and you're like, did I meet that goal? I'm not sure. It wasn't a very good metric, so be really thoughtful about how will I know that I achieved this? And you might be thinking, well, obviously you'll know if you achieved your goal or not. This can be harder than it sounds. I know a lot of small business owners that the first time they do this, they actually spend more time trying to figure out what the metrics are, what the goals are, then they have to do to actually track those goals throughout the year. Right. The act of putting this process in place can often be the most valuable part of goal setting.

[00:17:40] Andrea: So, what are some mechanisms that you've seen that have worked in the past?

[00:17:45] Christina Wallace: I mean, there are so many different frameworks. You can make SMART goals, you can make a balanced scorecard is one that I have seen frequently where you start with those strategic priorities and then you outline the activities and the metrics. But crucially, you do this across [00:18:00] all of the key components so that you see it all in one place. It almost becomes a dashboard that you're looking at all at the time. Because the point is not just to achieve any specific goal, it's that are you achieving the entire larger picture, which is right, the suite, the portfolio of goals that you've set for the year.  

You can do it in other ways. My favorite one is super simple. Why, what, how, when: these are questions that we've learned, you know, in like third grade writing of how do you tell a great story, but it's relevant to your goals too. Why do we care about this? Right? That's our true north. It keeps you focused on, what gets us outta bed? What am I gonna do? How am I gonna do it, and when am I gonna be held accountable for that? And I think this is a really interesting framework because it starts with, as you think about how do I roll this out to my company?  

The why; you gotta have clear alignment with everyone. You have to have communication with your company. If these are your goals and you don't share them with anyone else, [00:19:00] probably not gonna get anywhere. So how can you be really strategic and intentional about sharing the why and telling that story to get people on board and running all the same direction toward these goals.

The what? Again, clear metrics. What are we going to do and how will we know that we've met them? I cannot stress this enough. If you don't know if you've met the goal, that's a problem.  

The third is the how, and that's the resources. How are we going to actually pursue these activities, achieve these targets. If you don't have the resources in place or you don't give your team the resources, it's not fair to set that goal. And I think that's often where you feel some real frustration in your business. If you have a team and you've asked them to shoot for the moon, but you won't even give them a ladder, let alone a rocket ship, right? So how can you make sure that the how is lined up with the what and the why.  

[00:20:00] And last is the when, and that's really about accountability. When are we going to say whether we've met this goal and don't let that kind of inch forward. When are we actually going to say, okay, this is the end. Is it the quarter? Is it the year? What is that timeframe that we are running toward?

[00:20:21] Andrea: You mentioned being realistic about your goals -- shooting for the moon but not giving people a rocket ship to get there -- I loved that by the way. But I think that resonates with many people, even those who aren’t small business owners, businesses-- big, small and everywhere in between -- are constantly looking for this movement, this growth, and yet we are sometimes limited by headcount, funding, finances, et cetera.

[00:20:47] Christina Wallace: Yeah. I mean, it's a real tension where companies are giving employees less and less in the way of resources and expecting more and more. And in some cases, in some cases [00:21:00] maybe they were over-resourced. Maybe there were too many people or there was too much budget. And so it doesn't drive the creativity, the ingenuity, and the entrepreneurship. Maybe the constraints will drive creativity. But in most cases, if you have been cut to the bone repeatedly, and I think there's a strong argument to say many companies, large and small, have had a history of cutting back for the last decade or two. There comes a point where your team will break, right? No one wants to be part of a losing team, and no one wants to feel like they're underperforming. And if you give them less and less and expect more and more, they're either gonna give up, quit, or burn out. So, being really realistic about the resources and crucially, not just each individual goal, but back to the bigger picture, are all of these goals collectively realistic for this year? [00:22:00] For this time period or these resources, and this is where you wanna be thoughtful about how can I visualize all of these pieces together, and that could be a Gantt chart where you line them up on a time base to say, whoa, we're trying to squeeze a lot into this three-month period. Maybe we should spread it out.

Or it could be something just like a budget where you line up all of the investments and you're like, Oh, turns out to do this properly it’s gonna take more cash than we can afford. And so from a cash flow basis, we're gonna push this goal to next quarter or next year, or we're gonna go and look for the resources we need. To ensure that we have the cash to really drive all of these goals. So just being really thoughtful about how can I line them up and look for those bottlenecks, look for the constraints. And then again, this goes back to your priorities. If I'm gonna be super ambitious, then I gotta go get the resources. [00:23:00] If I would be more comfortable kind of spreading these out, maybe it doesn't have to be this year. I can push something over to next year. It all depends on what matters most to you.

[00:23:11] HOST: A small pause here to highlight some of these mechanisms that Christina mentioned. She mentioned SMART goals which stand for setting specific, measurable, achievable, realistic, and timely goals, asking why, what, how, and when, using a Gantt chart to line up goals on a time base and get an overview of how realistic they are in a given timeframe, and/or lining up your investments and making sure you are accounting for the actual budget you need to achieve those goals.  

[00:23:43] Andrea: Super important to highlight all of these things and I think it's top of mind for many people. Really quick side note, have you ever read, by any chance, Playing to Win by A.G. Lafley and Roger L. Martin. Have the book here next to me.

[00:23:57] Christina Wallace: Yes. Oh my gosh. That is a fantastic book. [00:24:00] I quoted it in my first book New to Big. they do some fantastic research on this mindset of playing to win versus playing not to lose, and just how differently you approach an opportunity if you have that mindset of like, this is on the line and if we get this, we're gonna make it, versus, I have this, and if I take the risk, I might fall short and then I'm gonna lose everything. And even if it's the exact same outcome, I think they have a great example in soccer players and penalty kicks. But even in that moment, that mindset of playing to win versus playing not to lose. Changes how you approach opportunity.  

And I, I see this often in, you know, if you're thinking about like, what are some mistakes that people make when they're trying to set goals, right? How do you not do this the wrong way, which is already a super stressful place to start the conversation. But there's this duality where there are some small business owners that will swing to too ambitious of a goal. [00:25:00] And they'll say, we're gonna have 30% growth year over year. And then their team hits 17% and they feel like we lost. And then there are small business owners that might have not ambitious enough of a goal, or they say, we're gonna grow 5% a year. And the team is like, well, we could do more than that, but I guess, okay. We'll go for seven, right? So, some of this depends a little bit on like what's your mindset? What's the mindset of your team? But your team wants a challenge. People love a challenge, especially as a group, rise to the occasion. Give them that story, give them the motivation for why. But then keep in mind the people want to win and they wanna feel like they're on a winning team. So if you are constantly setting ambitious goals that you know, your team can't reach, at some point, even if they're doing great work, they're gonna feel demotivated. So be really thoughtful [00:26:00] about what's actually gonna get them going.  

And then the other two mistakes that are probably just as problematic, setting too many goals. If everything is a priority, nothing is. So be realistic about what you can achieve in the timeframe and with the resources you've set. And then the last one, which seems like a no-brainer, and yet I've seen it more times than I can count. Nobody knows the goals. You've set them. You had this great strategy session with yourself, and then you didn't share them. So the rule of thumb. Internal communications is you say it until you are sick of saying it, and then you say it three more times, right? It's a little bit like getting a toddler to do something. You have to say it so many more times than you think because they've got a lot on their mind. They're being pulled in a lot of directions, and your team is too. So being really clear and consistent on why you're driving toward this future, [00:27:00] what that future looks like, how will you know when you get there and when are we gonna hold ourselves accountable for having gotten there? That's sort of the framework that's gonna help you be successful.

[00:27:12] Andrea: When I'm setting goals for myself, I try not to over promise myself anything or set too many goals in one year. But one of my goals from years ago, was getting free books to fuel my book addiction and somehow that happened. I ended up with a partnership with a book publishing house and now they send me a lot of their books to review now.

[00:27:35] Christina Wallace: I just love that this even occurred to you as a goal that you should reach for, and yet I think this is a perfect example of like, well, what matters to you if you know you've got a book habit that's fairly expensive. Let’s be smart and creative. About how we might be able to subsidize that book habit. It’s a perfect encapsulation of figure out what matters to you and use that.

[00:28:00] I think so many small business owners feel like they have goals that they should run toward, right? That depending on what you're reading, or maybe you have a little a group of other small business owners that you meet up with and there might be things that matter to you that might feel very silly, like having more flexibility in your day to spend time with your kids and maybe you feel like that's not a legitimate goal. But that is absolutely a legitimate goal. These don't just have to be financial goals or growth goals or profit goals. They can be of anything. What matters to you? These could be sustainability goals. These could be about human capital, growing your team and empowering them to live their best lives. Whatever's the reason why you decided to be a small business owner. Those are legitimate things to set goals against.

[00:28:53] Andrea: Any last things you’d like to say in terms of setting goals and mechanisms?  

[00:29:00] Christina Wallace: Don't be afraid to set. B - HAGs: big, hairy, audacious goals. I know it's a terrible acronym for what is otherwise a really exciting idea and I say this with the same breath that I just said, don't set goals that are too ambitious. But I think sometimes we have an idea for what we want, and it just seems too audacious to put it in writing or to say it out loud or to be something that we would ever go toward, like having free books, and yet, if it's something you want, don't be afraid to put it out there. It might be a goal that takes several years, a decade, whatever that that timeframe is that you say, I don't know when I'm gonna get there. You just told me to set actionable goals within a discreet timeframe. I get it. But at the very least, if you've got this big, hairy, audacious goal, put it somewhere. Make your little vision board or whatever that thing is, a sticky note on your monitor, [00:30:00] and just have that front of mind. As you get outta bed every day to say, why am I doing this? Just have that front of mind of like, maybe someday I'm gonna figure out how to get free books.

[00:30:15] HOST: That was Christina Wallace, a senior lecturer at Harvard Business School where she teaches entrepreneurship and marketing. Thank you so much for listening today -- I hope you're feeling just as excited and motivated as I am to set those big, hairy, audacious goals. This episode had so much helpful information and as always, some of the key takeaways I learned today with Renee and Christina are:

• Goals help you in times of tension. Setting goals is important because it allows you to say no to opportunities that don't align with what you achieve which gives you more time to prioritize opportunities that will help you get where you want to go. But how do you set these goals?  
• This leads us to Two: Know your why and back solve. As Christina mentioned, figuring out your goals [00:31:00] can be an intimate process. You have to ask yourself -- and maybe even investors or other employees that are important to your business -- what is your mission? What do you want to achieve? And once you have that figured out, back solve to know how you'll get there. Renee did this by setting her North Star for Livity Yoga.
• Three. Let people know! An easy but often missed step. And also, don’t set too many goals at once, because if everything is a priority, then nothing is.  
• Four. Make sure you have the resources in place for your goal. You can't get to the moon without a Rocketship - Thank you Christina, I loved that - so make sure you’re equipped with the tools you need to achieve your goals; and if you don't have these resources yet, then maybe readjust your goal.  
• Five. Have a metric. You need to figure out a way to track your goal. It sounds easier said than done, but a lot of people struggle with this. Some of the mechanisms that we talked about were SMART goals, [00:32:00] asking why, what, when, how, Gantt charts, and investment timeliness.  

So what goals and mechanisms do you have for your small business? I'd love to know. Reach out to us at thisissmallbusiness@amazon.com to tell us what you're up to. Or let me know what you thought of this episode by leaving a review. Meanwhile, if you like what you heard, subscribe and tell your friends about us by sending them a link to this episode. You can also leave us a review on Apple podcasts – it’s easier to do it through your phone.  

That's it for episode 5 of season two of This is Small Business, brought to you by Amazon. Next on the show, we'll be talking about the importance of taking a vacation -- something that a lot of business owners struggle with -- and setting up your business in a way that ensures you can take that vacation with Art Markman, Professor of Psychology and Vice Provost for Academic Affairs at the University of Texas at Austin.

Until next time – This is Small Business, I'm your host Andrea Marquez [00:33:00] -- Hasta luego -- and thanks for listening!  

CREDITS: This is Small Business is brought to you by Amazon, with technical and story production by JAR Audio. [00:33:20]