Insights: Principal & Interest

Practical ideas on strategy, team ownership, profit, and execution from Joe Koenig, business advisor and founder of Compound Impact System. Lessons from building and exiting a company and building a business that makes a meaningful impact.

A Revenue Target Is Not a Vision

"Get to $3M" is a number, not a destination. Owners who can describe the business they're building make noticeably different decisions on the way there.

Most owners I talk to have a number they're chasing. Three million. Ten million. Whatever the next round figure happens to be.

Ask a follow-up question, though — what does the business actually look like at that number? — and things get quiet. Who does it serve? Who works there? What kind of work does it take on, and what does it turn down? What does the profit fund?

A number by itself gives you nothing to steer with. And without something to steer toward, daily activity slowly turns into drift. Busy, sometimes profitable, but not really going anywhere in particular.

Write the picture, not the number

The exercise I put owners through is to describe the business three years out in concrete enough terms that two people reading it would picture roughly the same company. Revenue, yes — but also team size, customer base, what you produce, what you've stopped doing, and what the profit is for.

That last piece matters more than it sounds. When the vision connects to something beyond the business — the family it provides for, the team it takes care of, the causes it funds — it holds up during the years when the number isn't cooperating. A revenue goal is easy to abandon in a bad quarter. A picture of what you're building for is harder to walk away from.

Then cut the priorities down until it hurts

Vision without an annual plan stays a daydream. But the failure I see most often isn't a missing plan — it's a plan with fourteen priorities on it.

When everything's a priority, the year sorts itself out by urgency instead of importance. By Q2 most of the list has quietly gone dormant, though the owner still thinks of it as "the plan" because it's written down somewhere.

Three to five priorities for the year. That's it. With a clear picture of what success looks like. And alongside it, the list owners almost never make: what we are explicitly not doing this year. That second list is what keeps the first one alive.

The filter is where it gets hard

Here's the uncomfortable truth about staying pointed at something.

Most of the things that pull a business off course are genuinely good opportunities. A new market. A new product line. A partnership that seems too promising to pass on. A big customer who happens to sit outside everything you decided you were for.

If the distractions were obviously bad, this would be easy. They're not. Which is why the discipline of Aim is really the discipline of saying no to good things in order to protect the right thing — and why it helps to have a written filter you use out loud, with your team, every time something new shows up. A few plain questions: does this move us toward the picture? What would we stop doing to make room? What happens if we say no?

Owners who make this a habit get a reputation with their own team for being steady. Owners who don't reset the strategy every March, and get a year of motion without much progress to show for it.

Three years is closer than it feels

The thing about compounding is that it's invisible for a long time and then suddenly obvious. Three years of small decisions all pointed in the same direction produce a business that people describe as an overnight success. Three years of small decisions pointed at whatever was loudest that month produce a busy company that looks a lot like it did before.

Same effort. Very different outcome. The difference is mostly whether there was a picture to aim at.

So it's worth asking what you'd actually want to be true three years from now — specifically enough that you'd know whether you got there. Then asking whether this year's plan has any real relationship to that answer.

Joe Koenig is a business advisor and founder of Compound Impact System. He co-founded and helped grow a software company to more than $10 million in annual recurring revenue before its sale, and founded Three Avocados, a nonprofit coffee company that funds clean water projects.

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Every deal still runs through you

Many business owners build a company that slowly starts running them. I help owners of established businesses install a system across six areas so the business compounds instead of drifts — in profit, in people, and in what the profit is finally free to do.

Business advisory and coaching for owners of established businesses who want stronger companies, good jobs, meaningful community and global impact, and greater freedom for their families.

Copyright@2026

Many business owners build a company that slowly starts running them. I help owners of established businesses install a system across six areas so the business compounds instead of drifts — in profit, in people, and in what the profit is finally free to do.

Business advisory and coaching for owners of established businesses who want stronger companies, good jobs, meaningful community and global impact, and greater freedom for their families.

Copyright@2026

Many business owners build a company that slowly starts running them. I help owners of established businesses install a system across six areas so the business compounds instead of drifts — in profit, in people, and in what the profit is finally free to do.

Business advisory and coaching for owners of established businesses who want stronger companies, good jobs, meaningful community and global impact, and greater freedom for their families.

Copyright@2026