Why bother growing your business?
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The Business Journey The Business Journey 25 April 2017
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Transcript of Why bother growing your business?
The Business Journey
The Business Journey25 April 2017
The Business Journey
Jim Henderson
The Business Journey
“The Business of Growth”
25th April 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
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 Vote23rd June 2016
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 ?
Fears & Benefits
Your Choice to Grow
Opportunity or Armageddon ?
How’s your mind-set? (Hold back or get on with it?)
Challenge 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 Capacity
Introduction to Growth Strategy
Capacity
Capacity is the maximum
revenue achievable given
available resources today
Maximum
Run Rate
80% realistic capacity
40%
Effective Operating Zone
100%
Platform Strategy
26 April, 2017 | 015
Growth Strategy
26 April, 2017 | 016
Choice
Strategically there are only 2 things you can do with a business:
• Fill up the cup = Platform
• Get a bigger cup = Growth
26 April, 2017 | 017
Controlled Growth
26 April, 2017 | 018
Platform Strategies(fill the existing cup with more revenue)
• Staff Training
• Product Training
• New database
• Management Systems
• Marketing plan
• Functional Structure
• Workflows – no bottlenecks
26 April, 2017 | 019
Growth Strategies(change the size existing cup to create more capacity to earn more revenue)
26 April, 2017 | 020
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 (e.g. 40% run rate), end up stressed
• Capacity planning gets you clear about how to grow
26 April, 2017 | 021
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 (invest first)
The Business Journey
Questions?
The Business Journey
5 September
7 November
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