why bother growing your business?
TRANSCRIPT
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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