How To Achieve Massive Business Growth

business

What is your ultimate business plan? Do you want to increase sales, improve profit, grow your business and create wealth? Let me outline how you might go about achieving massive growth in your business – no matter what business you are in.

Twenty five years as a business advisor across most industry groups has shown me that while most owners are fantastic at running their day to day business operations, they never spend enough time working on improving the performance of their business.

Sadly, most business owners I have worked with are just so busy working to keep the wheels turning that they never make the money they deserve. Many struggle to draw commercial wages for their efforts, many never reach their profit potential, and most never sell their business for what it could really be worth.

My question to you is – are you making enough money right now? Do you even know how much profit your business is capable of making? Perhaps even more importantly, do you have a plan of how to grow your business profit and business value into the future?

I think you will be amazed at how easy it is to achieve massive business growth if you simply focus on what is important. In fact, let me cut to the chase and show you how easy it can be – let me show you an example of a business that grew its profit by 75% after making 5% improvements in each of its 5 key profit drivers.

Before implementing a business improvement plan, this manufacturing business had 800 customers purchasing from them 6 times a year and spending on average $500 each time. This gave the business a sales turnover of $2,400,000. With a gross margin of 50%, their gross profit was $1,200,000. After paying $800,000 in overheads, their net profit was $400,000.

By understanding the 5 underlying profit drivers in this business, this business introduced various strategies aimed at improving the results of each profit driver by at least 5%:

They increased the number of customers buying from them from 800 to 840 – a 5% increase;

They increased the number of times the customers purchased goods from them from 6 times a year to an average of 6.3 times a year – a 5% increase;

They increased the average amount of money each customer spent during their sales visits from $500 to $525 – a 5% increase;

They increased the average gross profit margin on each sale from 50% to 52.5% – an increase of 5%, and,

They decreased overheads from $800,000 to $760,000 – a decrease of 5%.

As a result of these improvements turnover increased from $2.4M to $2.8M and the underlying business profit increased from $400,000 to nearly $700,000 – that is an increase of $300,000 or 75%!

Even more amazing was that the value of the business (based on a sale multiple of 3 times net profit) also increased by 75% – increasing from $1.2M to a massive $2.1M!

Can you imagine what your business would look like if you were able to increase your profits by 75% year on year? Can you imagine how much better your family life would be with that result?

Now I know what you are probably saying to yourself just now – great story, but I could never achieve that result in my business. Well I am here to say that the above 5 step growth strategy will definitely work in your business.

I know it will work for you because I have seen this 5 step growth model used successfully on all sorts of businesses, in all kinds of industries and through all economic cycles over the past 25 years as a business advisor in Australia.

If you apply the 5 step system I guarantee that you will achieve massive growth in your business. Of course not everyone will achieve a 75% improvement in their profit result – some will achieve less, and some will achieve much, much more!

The results you can achieve in your business will depend on your particular profit drivers, the opportunities to improve these drivers, and most importantly, your ability and commitment to implement the 5 step system in your business.

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Business Purpose in 3 Steps

What is business purpose?

Well, what’s the purpose of your business? You can’t build a business that will create wealth for you, if you have not clearly defined your business purpose.

In a purposeless business, everything feels disordered, anxious, unclear, and without meaning.

There is a much better chance that your business will succeed when you have clearly articulated your business purpose. That’s because:

Purpose is your reason for being in business – When you are clear about your purpose, the direction of your time and energy is now framed by your intentions, your goals, your aspirations. Your productivity will soar because you’ll have guidelines to follow that help ensure the effectiveness of everything you carry out.
Purpose builds your brand – By clearly and consistently communicating your purpose to your prospects / clients, and targeted audience, over time, you create a brand in the minds of those who matter most to you.
Purpose leads to personal fulfillment, peace and joy – You are aligning your thinking with your actions. Becoming clear about how to move your business forward. You’re excited to get up in the morning because you understand what you are doing and what to do next. And, you’ll start seeing forward movement, clients and revenue start to increase!

You’ll see inner transformation and growth because when you define the purpose of your business it goes beyond making money… Yet it almost always results in making more money than you ever thought possible.

Your business purpose is a phrase that represent your business’s intention, defining your vision and mission in a brief statement.

Example:The purpose of this (your business name) business is to help entrepreneurs find clarity, focus, simplicity, and freedom in business and life; having perfect systems in place, bringing client loyalty, and finding strength in letting go; allowing their Greater Power to organize through them…with the perfect system of the Universe.

Steps to writing your Business Purpose:

1. Why does your business exist? What is it you want your business to do?

2. What is your business mission in short? People you serve, product / service you offer.

3. What is your business vision? What is it your business is trying to achieve?

4. Using these answers, your can now set yourself above your competition with a few memorable sentences focused towards your perfect client.

When starting your business, clarity of purpose is a central planning step in communicating your brand. Are you completely clear about what your business is designed to achieve? How it will be organized? And who your clients will be?

Strategy is everything!

Aligning your Business Mission Statement, Vision Statement and Purpose Statements gives you a strategic framework that your business success and your personal success can be maintained by. When you have set yourself apart depending on how well you define and live by these important concepts, it will help you maximize your profits. In other words, stop money leaks and create wealth!

Business Mentor and Wealth Creation Coach – Coach Donna L. Ward, helps people who seek to maximize their own potential so they can live productive, healthy, fulfilling, sustainable businesses and lives in Peace and Joy! How do you get started, and keep moving forward more smoothly, on your own journey?

I support entrepreneurs in living a life of abundance, peace and joy, in alignment with Spirit; as they organize their business, using the Secret of Non-Resistance, allowing Spirit to organize their journey.And, I now invite you to.

Practical Steps to Starting a Business Online

The transition from typical employee to business owner / entrepreneur can have its challenges. The upside is outstanding but there are also risks that should be considered. The path to entrepreneurship and starting a business will have you facing many challenges with one of the biggest being the financial strain when you first begin. No longer relying on a steady pay check or the benefits you’ve come to rely on as an employee can turn many potential new business owners off. Depending on your resources you will most likely be starting off with you being the only employee. This means you will be faced with tasks you may not enjoy or up to this point have no idea how to do. The basic nature of an entrepreneur however is to have the desire to overcome these challenges and stair adversity in the face with the confidence it takes to succeed.

I’ve written this not to scare or deter you from chasing your dreams but rather in an attempt to make this leap as successful as possible by sharing what I’ve learned over the years and having gone through it personally.

1. Begin by considering what it is in life that you’ve always wanted to do.

Now if your forty years old and always wanted to be an astronaut that’s not what I’m talking about. I’m asking you to consider what you truly enjoy doing such as helping people or providing a unique service, physically building something just what you believe would make you happy and that you are passionate about. Don’t think about the money yet brainstorming ideas about starting a business begins with passion first we will be determining the commerciality of your choice later.

Preliminary Checklist of Your Readiness to Start a Business

I am willing to accept the risks and initial instability that comes with starting a business
I am able to rely on myself 100% I can make decisions that make or break my new business.
I work effectively on my own motivating myself without supervision. I do not rely on others.
I am goal oriented and will work at completing my goals everyday without exception.
I can visualise opportunities and have the confidence to go after them.
I can handle the stress and pressures that are inherently apart of starting a new business. Even when things do not go as planned I believe I can overcome any problem.
I posses the drive, determination and willingness to work long hours to make my business a success.

2. Determine The Business Ownership That’s Right For You

The Three Main Ownership Options when Starting a Business are:

Buy a Business that already exists.

Traditionally buying a business will be more expensive but does have its advantages. Start up can be the most gruelling part and establishing a customer base is no easy task. This may interest those who want to hit the ground running and have the budget to do so. Do your due diligence with any business you consider buying. Why does the current owner want to sell? What is the market conditions like for the business? Will there be new competition just around the corner that the current owner failed to disclose. Make it you priority to research everything before jumping in.

Franchise

Purchasing a franchise is a great way to lower the risk of business ownership but it has its pros & cons. A franchise is established providing a track record and the ability to review other stores profitability. You are buying a brand that already has customer awareness so there are fees for this. Start up fees and ongoing royalties are part of the deal when it comes to owning a franchise.

Start Your Own Business

This is for the true entrepreneur. Where you are the boss and your vision comes into reality. You will decide what’s right for the business how fast to grow it and what direction it will take. This is not always the cheapest option as is sometimes suggested. Sure there are thousands of cases where someone started with $500 and turned it into a thriving business but this is all dependent on the type business you decide to start what skills and resources you already have etc.

3. Zero in on the Business you want to start

Consider these three different options

Start a business in a high growth market or new up and coming trend,

This business plan takes a bit more guts but in many cases that’s where you get the glory. If you consider yourself good at spotting new trends this can be your ace in business. Setting up shop in front of an up and coming trend will help to position you as a leader and an authority within the space. This allows you to grow at an explosive rate if things really catch on. Choose it wrong though and you go down with the ship so do your research there may be a reason why other businesses are not in the space. Some say to focus on where the completion is already the reasoning behind it being that if others are making money there chances are you can to. Just be cautious and as always do you research thoroughly.

Turn your current employment into your own business-

The path of least resistance sometimes is sticking with what you already know. Especially true if you already have a passion for the business you’re currently involved in. You may see opportunities on how things could be done better and most likely already have industry contacts that will make your transition into entrepreneurship that much easier. I would suggest reviewing any employment contracts you signed before taking this approach. There can be no compete clauses or conflict of interest arguments if you plan on starting your business before actually resigning.

Start a business based on a hobby or interest

This can be one of the most exciting aspects of starting a business. The age old saying that really sums up this one is if you love what you do you’ll never work a day in your life. It’s not all roses here either though. A close friend of mine had a loved for the outdoors and decided to give up his sales job to pursue his passions as an eco adventure guide. He quickly found that as a complete start up the accounting and proper bookkeeping was something he absolutely hated. He was fortunate that he was able to pull from many of his corporate sales contacts to build his new business quickly positioned as a corporate team building activity. This quick growth allowed him to hire the accounting help he needed to stay clear of any tax troubles down the road and allowed him to stay focused on growing his business. Always be looking for synergies even if the business your started seems unrelated to what you old profession was there may be opportunities to be discovered.

4. Begin to research the Commerciality of your business idea

I would always recommend drafting a proper business plan, some may skip this step and if so it’s important to at least answer the following.

Determine what skills are needed to operate the business. Do you currently posses any of these skills or are you willing to learn them. Without the skills how will you learn them and what costs are involved.
Determine the actual business operation, how it works, who are the customers, what are the products or services being offered.
Does your business have commercial legs meaning what is the supply and demand within your market?
What equipment, supplies or facility is necessary to operate this type of business?
Forecast any possible overheads your business will be incurring when operating.
How much capital is needed to start the business? Would banks entertain the idea of financing or is venture capital required. Do you currently have personal funds set aside or are friends and family willing to help. (Essentially where will the start up money come from?)

When everything has lined up just right how will you proceed?

Resign or quit your job right way to begin working on the business?
Stay employed while you begin the leg work (evenings & weekends)
Reduce your current jobs weekly hours to dedicate more time to your new business
Recruit an employee to begin laying the foundation while you’re still employed with steady income

5. Include your family in your decisions

Having the support of your family will be a huge consideration when you decide to start a business. When your single without commitments there is far less to consider outside your own mental an physical well being. Remember it’s your dream but they too will experience the hardships that starting a business can create. Make sure you already have or have planned for the needs of your household during this transition in to entrepreneurship. The recommended financial security is between 6 and 12 months living expenses ensuring you will have the ability to survive any bumps in the road during those first few months after starting your business.