Thursday, July 19, 2012

The Foundations of a Successful business

Before going for growth, make sure your existing business is on solid ground - ie the foundations are strong.

I heard a great analogy the other day... It's pointless filling a car with petrol before the engine is working!

There are 4 pillars that need to be in place in order to form a solid foundation for a business to grow:-

1. have a positive mindset

Having a positive mindset is a key ingredient for your business to succeed.
Have an unconditional belief in its success. Understand why you are in the business and what the business is.

Be accountable and take ownership and responsibility! Do not blame others or go into denial. Do not focus on the negatives.

A negative attitude and a mindset of being a victim will create an environment of angst, negativity and failure .

A positive attitude and mindset will create a positive direction and destiny of the business .

2. cash flow

Make sure that more money comes in than goes out.
Growth =cash burn
Make sure you have adequate reserves, capital and debt facilities to find the growth.
Lack of cash results in anxiety, fear and bad decisions. Fix this as a matter of priority!!!!

It is important that you understand what makes up cash flow and how to improve it. You cannot grow a business without cash.

3. systems
Systems are key to leverage, scalability, business growth and wealth creation .

It enables you to work on the business instead of in the business.

A business cannot grow until you have fundamental systems in place. Systems will enable you to scale your capacity and make average people look great!

4. marketing and sales - growing your revenue

You can save money by cutting costs, but you can only cut costs to zero, and you do not have a business.

Revenue growth is infinite!

It is all about Leads, Proposals and Sales
Questions to ask....
  • How can You generate more inquiries or leads?
  • How can you increase the average dollar sale?
  • How can you increase the conversion rates from leads to proposals to sales?
  • How can you increase the frequency of transaction?
  • How can you increase the margin?
  • Do you know where you are at the moment?
  • Do you know your current conversion rates from Leads, proposals and sales?
  • Do you know where you should be focussing on?
Determine things that you can do to increase leads, proposal and sales ...

Test and measure, test and measure, test and measure

Eliminate anything that is not working and then systemise anything that is working as part of your sales and marketing system.

Multiple marketing strategies is key. Some will work and some won't .
Have many touch points for a client to buy. CBA says that if a client buys 3 or more services, you have him for a long time!

Some businesses market, have a flood of new business.,stop marketing - deliver, and then go from a flood to a drought. Does that sound like you?
It is important to have a business that is consistently marketing all of the time!

In summary , before going for growth, concentrate on building and fortifying your foundations.
Create a positive mindset,stop the cash burn , system use your business, build revenue growth .... And watch your business fly!!!!!

Inspiration from Tony Gattari and www.10x.com.au

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