It is a common practice to wish all our business associates, friends, and customers a Happy New Year on the 1st of January of every year.
However, I have chosen to write this article today. The 4th day of 2017. What is the catch?
I just want all to know that after all the well wishes, we MUST get down to business somehow. We MUST not get our heads in the clouds of holiday moods any longer. We MUST strategize and plan for our business growth.
Growth is essential for any business. But the fundamentals still remain the same. The strategies applied by each individual may be different and will be different but the fundamentals will always be the SAME.
So what are the fundamental to consistent business growth? There are 5 in our opinion and experience.
Fundamental 1) Know the unit cost of all your products and services;
Fundamental 2) Know your monthly and quarterly Break-even sales volume;
Fundamental 3) Know the Profitability Map of all your customers, products and services;
Fundamental 4) Segment the profitable from the unprofitable; and
Fundamental 5) Implement Sales and Marketing strategies to target and expand your Profitable Core.
Granted. Most business owners would expect something more complex to growing a business than the abovementioned 5 points. To most of them, there is value in complexity. But to us, simplicity is beautiful.
We have used the above 5-point plan and turned around many ailing businesses in most industries like education, F&B, logistics, warehousing, insurance, and retail etc. The results have been exemplary.
I certainly hope this 5-point plan would be able to help you assess the current state of your business and hope that you would try to look into each of the 5 points and start growing your business in 2017 and beyond.
To be a business owner is beautiful. To be a business owner of a growing business is Priceless.
A growth business will attract investors and employees to itself;
A growth business is ALWAYS more valuable that a stagnant one at the point of M&A; and
A growth business can do more for the society.
Therefore I hope we will start to focus our attention to grow our business every business day of our lives as entrepreneurs.