Why do some businesses struggle?
It’s easy to blame things like the UK tax system, or the reluctance of banks to lend, but all businesses are subject to those factors and some DO thrive and prosper, so what could be the real reason ?
Well, in a lot of cases, the thing that kills so many hopeful small businesses is a deficiency in understanding of the following two crucial areas:
- The financial aspects of business
- How to effectively market that business
All the optimism of starting up on your own and being free of an employer’s shackles can evaporate when faced with the burnout caused by never being quite able to make enough money to take the business forward and yet never having the time either to sit down and get to grips with how to expand the business in a planned and systematic way. The best a business owner in this situation (and there are very many) can hope for is a bit of organic growth.
HOW do I grow my business in a planned and systematic way ?
At ActionCOACH we define a REAL business as “A Commercial Profitable, Enterprise that Works Without You (the owner)”. Let’s look at each part of the definition in turn:
Some businesses I come across are uncontrolled and in a degree of chaos.
There are 4 main reasons for this and any can be evident;
- No documented plans for future growth
- A failure to understand what financial indicators of the business are telling the owner
- Poor self-organisation or time management -, inability to run an effective diary, to prioritise properly, or to delegate effectively
- A major issue with delivering their products or services
Addressing these issues in the way we do with our clients allows the owner to regain control over their business and sets them up nicely for the next level of growth.
“Turnover is Vanity, Profit is Sanity”
Too many businesses experience a cashflow which rollercoasters from month to month and makes financial prediction and future investment in growth almost impossible. Improved profitability generates free cash in the business which can then be used to grow the business further.
We work with business owners to:
- Create a USP (Unique Service Proposition to differentiate with the competition on something other than price;
- Improve cash flow and profitability by improving 5 key factors in the business:
- Margin Control (can provide very quick wins to a business)
- Conversion Rate (how good are you at selling to prospects ?)
- Average Value Sale (how well do you upsell to your existing customers ?)
- Number of Transactions (how well do you cross-sell to your existing customers ?)
- Lead Generation ( how good are you at attracting new prospects ?)
At ActionCOACH we have 344 tried and tested strategies to help business owners improve in each of those areas.
“Enterprise that Works”
The key to accelerating the growth of the business is to free up the owner from working on day-to day issues in the business so that he or she can concentrate on working ON the business – planning and strategising for the future.
We work with owners to “systemise” their business in this way through:
- Systems and technology – including documenting the major processes the business uses – both customer facing and internal
- Delivery and distribution – an in-depth review of the processes to ensure they are as efficient and effective as they can possible be
- People and education – making sure the business recruits, trains and retains the best people it can find
- Testing and measuring – constantly measuring the performance of different strategies (financial and operational) within the business to determine which is the most effective
The outcome of good systemisation in the business is that the processes take care of the customers, the staff take care of the processes and the owner’s job becomes increasingly one of management and leadership – taking care of the staff.
So the owner is now less involved in running the business on a day-to day basis and can start to really focus on Growth.
Having that focus completely is achieved through strengthening the team, perhaps by recruiting a strong and capable General Manager. ActionCOACH has an innovative and effective approach to recruitment which can expedite this process.
Bio – Rob Say
Rob Say is a business growth specialist who has been running his own business coaching enterprise under the ActionCOACH franchise for the last 3 years. He has successfully coached his clients to achieve some amazing business results:
- A building company that increased turnover by 117% in just 10 months
- A fish and chip shop owner who increased his net profit by 42% in his most recent trading year
- An accountant who ran 1 business with 2 people 16 months ago, now runs 3 businesses with 5 people
- A kitchen installer whose gross profit, 17 months after working with Rob, is 5.5 times what it was 2 years ago
- Another building company that went from £80,000 to £372,000 in turnover after 18 months of working with Rob
Outside of his working life, Rob lives with his partner Jackie in a Berkshire village and likes to spend his time attending “Dad-rock” concerts and following the fortunes of Manchester United.
You can contact Rob at the following addresses: