The Why, What, How of Business Growth
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Transcript of The Why, What, How of Business Growth
TODAY’S PROGRAMME
Jim HendersonThe Why, What, How of Business Growth
An Introduction to Growth strategy for owner / managed organisations.
Accelerate Ayrshire
“The Business of Growth”
16th February 2017
Agenda – Approach to Growth
• Why ? Why bother ? Why now – timing ?
• What ? What does growth look like ? What’s stopping you?
• How ? Introduction to Growth Strategy Introduction to Capacity
Shirlaws GroupSupporting Private Enterprise on their Business Journey to..
Confidence to Change Courage to Invest Freedom to Choose
Agenda – Approach to Growth
• Why ? Why bother ? Why now – timing ?
• What ? What does growth look like ? What’s stopping you?
• How ? Introduction to Growth Strategy Introduction to Capacity
FTSE 100 – Trend 1 Year Back to Date
Brexit
Your Choice to Grow
Opportunity or Armageddon ?
How’s your mind-set? (Hold back or get on with it?)
What beliefs do you hold?
Those showing courage, confidence and innovation, always win in times of great change
Agenda – Approach to Growth
• Why ? Why bother ? Why now – timing ?
• What ? What does growth look like ? What’s stopping you?
• How ? Introduction to Growth Strategy Introduction to Capacity
What Does Growth Look Like?
120k
240k
400k
600k
80k
750k
What’s Stopping You ?
Agenda – Approach to Growth
• Why ? Why bother ? Why now – timing ?
• What ? What does growth look like ? What’s stopping you?
• How ? Introduction to Growth Strategy Introduction to Capacity
Capacity
Capacity is the maximum revenue available given available resources today
Maximum
Run Rate
80% realistic capacity
40%
Effective Operating Zone
100%
Platform Strategy
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Platform Strategies(fill the cup)
• Staff Training
• Product Training
• New database
• Management Systems
• Marketing plan
• Functional Structure
• Workflows – no bottlenecks
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Growth Strategy
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Growth Strategies
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Choice
Strategically there are only 2 things you can do with a business:
• Fill up the cup = Platform• Get a bigger cup = Growth
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Not Aware of Capacity Numbers
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Are Aware of Capacity Numbers
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Controlled Growth
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One Step Ahead
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Strategy Planned Phases
1st Phase
2nd Phase
3rd Phase
4th Phase
PLATFORM GROWTH(1)(2)(3)
(1)(2)(3)
(1)(2)(3)
(1)(2)(3)
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Capacity Summary
• Most businesses focus on turnover rather than capacity• Turnover on its own tells you nothing• Turnover in context of capacity tells you a lot• Businesses who have increased their turnover but increased
their inefficiency, end up stressed• Capacity planning gets you clear about how to grow
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Capacity Summary continued…
• Be aware of your Capacity and Run Rate Numbers• Use those numbers to create a controlled growth plan• Identify platform (and growth) strategies• Businesses grow in cycles and work in ranges• Businesses can get stuck in a range which is normal• Income follows assets
Next Time – Growth Strategies
• Positioning• Distribution• New product or market• Pricing and packaging• Leverage (more of)• Re-shape the Client Base
TODAY’S PROGRAMME
Jim HendersonThe Why, What, How of Business Growth
Questions?
