8 key steps to accelerate scale and growth in your business
I have never met a business person who has admitted to not wanting to grow their organisation. Have you?
Their strategic plan (should one exist) typically has a growth objective - but it’s based on no science or plan...it’s just a ‘finger in the wind.’
- ‘Grow revenue by 20%.....no, 30%’
- ‘Grow our database to 1m…’
- ‘Grow market share from 30% to 40%’.
Asking if they want to grow their business is akin to simply asking if they would like more money in their bank accounts…...Um, yes please!
However, the key to growing a business exponentially, lies in understanding the difference between Growth and Scale.
Growth is defined as ‘the process of increasing in size’. When using the term ‘growth’, there is little further thought given in its meaning, nor the process through which it is achieved. Just get bigger!! This means increased marketing, more staff, more offices, more...more...more…
Whereas Scale means that your business has the potential to multiply revenue with minimal incremental cost. If you are ready to scale, you have a proven product and a proven business model, about to expand to new geographies and markets.
Growth helps you get BIGGER, scale helps you get BETTER
Scale plus Growth results in exponential returns. In order to achieve both, you need to follow these eight key steps:
How is your Growth Mojo - are you REALLY ready for growth?
Be honest with yourself. Are you prepared to make tough decisions to scale your business? You must be prepared to invest time and money into finding and developing new technology and upskill your staff and resources.
Lifestyle or Performance - what are you aiming for?
The business lifecycle is split into six stages. Firstly you need to be clear on where you currently sit - 70% of businesses are in the Wilderness. Then you need to be clear on whether you are building a Lifestyle or a Performance business. Is your business in the Wilderness? If so....read on.
Who is your Tribe - who are you going to lead?
You must become famous. Seth Godin believes that Tribes are waiting to happen, all that is missing is leadership. No one is going to anoint you as their leader. Design a clear and powerful message that your tribe can aspire to, and shout it from the rooftops! I am not sure what Micheal Chieka’s message was to the Wallabies in 2015, however I can assure you that they didn’t instantly become THAT much better at rugby after Ewen McKenzie left - he lead them with a clear and powerful message that they could aspire to. Do the same to your customers.
Customer and Capacity - define your customer and provide a remarkable experience
Be clear on your perfect customer, and don’t let the others in! Know where you are an expert and have developed powerful IP - own that space. Be prepared to ‘refer’ 30% of the enquiries that come through your door to your competitors. Don’t compete, play a different game. A strong referral is more rewarding to a customer, than a bad service experience from someone who isn’t really qualified to do the job they require. Imagine you walked into your office tomorrow morning and fired ALL of your customers…..which ones would you re-hire?
Market Imbalance - help your customers buy from you
What do your customers MOST want to buy? Everyone wants the most innovative product that is easy and convenient to use, at the lowest price, whilst having their hand held daily from their relationship manager and being taken out to lunch. However, one of those things is the MOST important thing to each of your customers - work out if it is Innovation, Relationships, Convenience or Price. (Hint: it usually is NOT price - despite what you think!)
Productisation - which problems do you solve for your customers, and how?
Once you are clear about who are your customers (part of your tribe), and what they want to buy, you should clarify what problems you are solving for those people. Remember, you are solving people’s problems - people buy from people. Understand the customer journey in the lead up to purchasing your product, and make sure your customers understand your core offering. Offer your customers a clear productised solution, that solves the major problems on their customer journey. They did NOT wake up this morning looking to buy from you, something happened prior to this. This is what Google call the Zero Moment of Truth or ZMOT. Find your customer’s ZMOT and productise a service that gets close to them at this point.
Value Spectrum and Ecosystem - climb stairs, not walls
Probably the most important step in this process - whilst your customers are looking to solve similar problems that your products can achieve, not all of them will be looking to purchase exactly the same product. Not all of them will be willing to spend the same amount of money. Provide varying solutions at each end of the value spectrum for your customers to buy. Consider two Mercedes Benz tribe members who share a passion for luxury car brands, with varying purchasing capacity. One buys an A180 and the other buys an S600 - both walk away as happy tribe members and Mercedes collects the revenue on both.
Shout from the rooftops
Once you have a clear and powerful message, you know exactly which customers you want to work with and can build a tribe around that, you can offer them a range of product solutions that they can purchase from you to solve the problems they encounter on their customer journey, you need to be strategic about how you go to market. A twelve-month plan to campaign each of your products will create waves of demand at certain points in time, meaning that you will have more demand than supply and you can continue charging a premium on your price. Don’t overcommit, however, as you will start to provide a substandard product that will upset your tribe!
Go forth, and do good things! If you wish to learn more about accelerating scale and growth within your business, click here to find a PKF Business Advisory expert near you.