Eight steps to a valuable business!
Starting a business is tough… 20% of businesses fail in their first year, 30% in their second, 50% by the fifth, and 70% by the tenth. These are the stats that Ann Gibbard shared in her recent talk at TNG’s online meeting.
Luckily, she also provides eight helpful steps that can aid you in building a valuable business. Read on to find out all about them.
Why do most businesses fail?
Ann begins by explaining that businesses fall into one of three “modes.”
Rescue mode
This is when a business is on the verge of failing. A classic symptom is if you have to be constantly involved with it while revenue is falling behind, and the whole thing feels as if it’s in crisis.
Zero mode
This is where a business is stable but isn’t exactly turning a profit. There’s no immediate danger, but there’s no benefit either.
Grow mode
This is where you want your business to be. In grow mode, a business is functioning as it should and turning a profit. In short, it’s trending upwards.
The key elements to a successful business
Ann explains that every business needs three key people. The entrepreneur brings the vision and secures funding. The manager manages the business and personnel. The technician does the technical work, whether that be sales strategies or building products.
Ann points out that some people try to be all three, which might work on an extremely small scale but won’t lead to growth. Instead, you need to build smart systems by implementing these eight steps.
The eight steps
Ann likens the eight steps to literal steps. You need to climb one before you can climb the next.
1. Have vision
To begin, you need to have a vision. It would be best if you evaluated where you want to be in life. What do you want in the future, and what do you need to make it happen? This begins on a personal level but then extends to the plan for your business.
2. Discover your advantage
Next, you need to discover your business’s advantage. Ann recommends a classic SWOT (strengths, weaknesses, opportunities, and threats) analysis. In short, what are your business’s unique strengths, and how well are you using them?
3. Set direction
Now the planning becomes more concrete. You must actively set out a business plan in reference to where you want to go and what your business can achieve when you leverage its advantages.
4. Right people
Remember how Ann said a business needs three key people? Well, that, of course, extends to all personnel. Your business needs the right people with a sound work culture. Your work culture should be based on ownership, accountability, and responsibility. A business culture rife with blame, excuses, and denial is bound to fail.
5. Good systems
Of course, you also need the right tools. They primarily take the form of SaaS solutions. A CRM system, quoting systems, order systems, a visible workflow, and so on. Your business needs to be able to function without constant micromanagement, which requires automation.
6. Sell and market
Now for direct action. Once you’re set-up, you need to increase your reach and draw in sales. It’s crucial to plan your marketing around your product. Make sure to emphasise the value it creates. Product-led growth is powerful. Your product should push your business; your business shouldn’t push your product.
7. Accurate numbers
Moving on, in order to ensure sustainable growth, you need accurate data. You need to monitor income and expenses. A proper budget is the key to success in that it keeps your business within the lines and allows you to further refine your plans.
Ann suggests you seek the help of professionals, such as accountants and other financial consultants.
8. Achieve milestones
Finally, you need to achieve the goals you set regularly. You need to push your business to the next level. Ann says that people often overestimate what can be done in the short term but that they also underestimate what they can achieve in the long term. Not only is achieving milestones the goal, but the more you do, the more you’ll understand what’s possible.
Conclusion
Long-term sustainable success is based on fundamentals. If you follow these steps, you can begin taking your business in the right direction and harness its value to achieve your goals.
Ann concludes with a quote from George Patton: “A good plan, violently executed now, is better than a perfect plan next week”. There’s never a better time to get started than right now.
See the full presentation on (199) Ann Gibbard ” 8 Steps To A Valuable Business” – YouTube
Want to connect & network with like-minded business owners?
Visit The Networking Group website & register : www.tng.org.nz/tng-groups/
