Only For The Bold

For those businesses that use the calendar year as their fiscal year, it is time to wrap your minds around your budget for the upcoming year.

Here is a challenge for you to chew on.  What would it take to double your revenue in 2014?

Now, if you say it can’t be done, then you’re right.  But, if you ask yourself “what would we have to do in order to double our business?”, then you are at least open to the possibility.

If you are going to double your revenue in 2014, determine your average annual revenue per customer.  You can attempt to double the number of customers you currently serve or double the annual revenue per customer or some combination thereof.  Some questions to ask yourself are:

a) how do I get more and better leads?

b) how do I improve our lead to customer conversion rate?

c) can we increase the number of transactions per customer?

d) can we increase the amount spent per customer transaction?

Here is a perspective that you can use in your planning activity:

1) Do more of some things

2) Do less of some things

3) Do some new things

4) Stop doing some things altogether

Let’s get started by looking at the top 20% of your client base.  Chances are that these customers account for 80% of your revenue.  Are there additional services or products that you currently offer that these customers would purchase from you?  If they are also focused upon growth, will the frequency of their purchases be increased?  Will they pay more for the existing products and services that they purchase from you?

Are there some customers that should receive fewer services from you?  Are there services that you provide for which you are not adequately reimbursed?

Who are the targeted companies that you should be approaching?  What new products or services can you add to your offering that are complementary to your current offering?  Is your current business plan in need of being revised?

Let’s go back to that 80/20 analysis of your customer base.  Which companies are candidates for pruning from your customer base?  Do you have any products or services that should likewise be expunged?

I’d encourage you to spend some time asking yourself how the business could be doubled rather than simply accepting that you can’t do it.  There will be smiles all around even if you only lift the business by 50%!

Grow or Wither?

Growing your business is something that most entrepreneurs strive to do. The reasons that they want to grow their businesses are many and varied and they include the following: increase profit; position it to sell at a higher value in the future; provide employment opportunities; contribute back to the community; build something for their family; satisfy their competitive nature; they never quit.  Regardless of the specific reason, most small business owners are looking for ways to grow.  Without growth, the business owner runs the risk of stagnation.  You should know that 95% of all new businesses in Canada fail within their first five years of operation.  So, we can ask ourselves this simple question.  Do we grow or do we run the risk of withering?

There are numerous resources that we can call upon in order to support our business planning and decision making.  One very comprehensive source for content is Small Business Solver.  This is a web based resource that is chock full of information that can be used to help guide the small business owner to a greater understanding of how to succeed in his/her business.  Small Business Solver provides subject matter content via over 200 learning modules, webinars, tutorials, and useful financial and planning templates.  There is also a significant discount offering from Staples that is provided as part of the low annual subscription price.

If you believe in life long learning and the enrichment that this attitude delivers, then I’d encourage you to consider a $250 (plus tax) subscription to Small Business Solver.  If you purchase this subscription from my website, you will also receive a full behaviour and motivator assessment complete with a one hour orientation session, at no additional cost.  This assessment alone is priced at $499.  The return on a Small Business Solver investment is significant.

Let Small Business Solver assist you in positioning your business for a future that is bigger than your present.