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Performance & Growth

Has Your Business Stopped Growing? Here’s How To Turn Things Around

There are four big reasons businesses stall out. It happened to me.

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Has your business ever stalled out and simply stopped growing?

It happened to me. Early on in my career as an entrepreneur, I couldn’t figure out why everything stalled. But lucky for me, I didn’t quit there. I kept working, changed my business, and now – having worked with thousands of business owners – I have discovered that the primary reasons a business stops growing tend to land into a handful of categories.

1Lack of opportunity

Some businesses just aren’t made to scale up. When I first started in the dry-cleaning delivery niche, I didn’t understand this simple fact: Business in my little area was never going to be a million-dollar business, let alone a multimillion-dollar business, no matter how hard I worked. Make sure you aren’t trying to win the Super Bowl with a peewee football team.

On a side note, when I make this argument, sometimes people argue the point. For example, they may tell me I could have expanded into other areas or franchised. Of course, I’m not saying there aren’t ways to scale a business, but some businesses are simply easier and less risky to scale than others.

If you are in an industry that is challenging to scale, one where your risk of failure is super high, it may be a good idea to start looking into other opportunities.

2Boredom

boredom

It’s amazing how many of us get bored. We get bored with our marketing, with our product, with our niche. Our boredom causes us to cancel marketing, taking our eye off the main business to focus on some new exciting startup we want to work on.

Want to sell and jump into a new exciting niche where every prospect only says yes and sales come easily? I get it. I’m not immune to those feelings. But, making changes because we are bored is insanity! If you have an ATM machine that spits out hundred-dollar bills, why would you try to rewire it?

This is what people do with their marketing or when they take focus off the main cash cow business. I can’t tell you how many times I’ve heard someone say they are stopping what’s working because they want to try something new. It’s just crazy.

3People

If you read the crap that comes from some marketers, you’d think that everyone was making money easily, using only the internet with no problems, no skills and no employees. While I do know people I could describe that way who are making money, this is the exception and not the rule.

It would be like me pointing to a group of billionaires and selling thousands of products with the premise being: “Just buy this product and you too can be a billionaire.”

In almost all businesses it takes employees (or at least outsourced labor) to grow. If you’ve stalled, it may be because you need to invest in another employee or two to kick-start the growth. I get it, when you invest in employees, payroll is bloated, short-term profits go down, and it is risky. But guess what? You’re a business owner – that’s the job. And 99.99 percent of businesses need employees to make money.

4Too externally focused

performance-and-business-investment

As I write this, I’m in the middle of planning next year’s marketing strategy. I will have a number of new and exciting items on the list (external stuff), but one of the most interesting numbers I’m working on is a plan for our sales call conversion rate.

With no increases in the number of calls next year, a 5 percent increase in conversion would equal an additional $1.152 million in annual revenue. That is an internal number worth focusing on.

I’ll also be looking at how to reduce customer churn, improve employee performance and increase referrals. Just focusing on internal opportunities, we have the potential to add millions in new revenue and/or cost reductions due to improved performance, which leads to increased margins. If you’re not thinking about ways to work on these internal opportunities, you’re leaving tons of new revenue and profit on the table.

Growing a business isn’t easy, but it is pretty simple, assuming you have opportunity in the current business model. You just have to be willing to invest. Invest in yourself (your business education), and invest in your company by hiring the right people, focusing on improving your systems and process.

We’ve talked about why businesses stop growing, and the first two points looked at those reasons, but the last two points could easily be turned around and used as the start of a growth strategy.

  • Who should you hire right now?
  • What internal challenges could you fix that would have an increase on profits?
  • Can you do a better job converting prospects into customers?
  • How are you doing on upsells?
  • What about referrals?
  • Do your customers know who you are, what you do, and that you’re still in business? If not, how are you going to change that?
  • What is the communication strategy for both prospects and customers?

I could go on, but you get the point.

The decision to grow (or not grow) is yours; you’re armed with the information. Now you just need to take action.

This article was originally posted here on Entrepreneur.com.

Shaun Buck is the co-author of No B.S. Guide to Maximum Referrals and Customer Retention (Entrepreneur Press, March 2016) as well as CEO of Boise, Idaho-based The Newsletter Pro, the largest custom print newsletter company in the world—printing and mailing millions of newsletters annually for diverse industries all over the globe.

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Performance & Growth

How To Survive Exponential Change In Your Business

How to get out of the habit of thinking small, and start thinking in giant leaps for radical – and profitable – change.

Matt Brown

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I recently went to a meet and greet session at a company that turns over R13 billion a year. As I was introduced to other executives, I was referred to as ‘the guy who is at the pinnacle of podcasting in South Africa’. This kind of feedback is truly humbling, but after hearing that, the only question I had on my mind was: “But for how long is anyone or any brand at the top of any market?”

The Challenge of Change

Change is no longer happening in a linear fashion; it’s occurring exponentially. We love linear thinking, because we have been conditioned to think in small steps (1, 2, 3, 4, 5, 6) but we totally suck at exponential thinking (1, 2, 4, 16, 32, 1 024). To a greater and greater extent this is the world we are heading into.

Almost inevitably, markets that used to be relatively predictable are winding up in an entirely new paradigm and some of the world’s largest and most reputable companies have been caught unaware. The main culprit? The exponential growth surprise factor.

For example, in 2012, Toys R Us was a $12 billion company with a retail footprint comprising 1 600 stores. In September 2017, they filed for chapter 11 bankruptcy… only five years later. The message is simple: Innovate or die.

But more importantly, there is a new challenge facing all entrepreneurs today: How can you prepare yourself and help your business survive in an exponential business world?

Related: Asking The Wrong Questions Will Break Your Business

Here’s a four-step process that can help you get started.

1. Look out for the Warning Signs

In my experience, the warning signs of disaster are present in every industry one to three years before disaster strikes. Ironically, many businesses are simply not paying attention to the warning signs in their market — or even worse, do not know what warning signs to look out for.

Because all industries and businesses are subject to different warning signs, a simple, yet highly effective way to know when your business is in the throes of a critical warning sign is when something within your industry doesn’t make sense.

When a linear industry is on the verge of disruption it generally manifests into something that doesn’t make sense for the incumbents in that industry.

In 2008, when blockchain technology and the Bitcoin first manifested itself, it didn’t make sense to many in financial services. Fast forward to today and there are over 1 000 cryptocurrencies that you can actively trade and the promise of the decentralisation of all industries — not just the financial services industry — is very real.

So, if something new enters your industry and it doesn’t make sense to you it’s time to apply step number three.

2. Ask Why

If you ask a group of incredibly smart people to solve a very difficult problem and they can’t seem to solve it, you may find that they don’t lack collective intelligence, but perspective on the problem itself.

Whenever this eventuality occurs the best thing to do is ask “why” repeatedly until you find the perspective that you need to make new decisions in your business. It’s one of most powerful yet completely undervalued questions that any business leader can ask.

3. Act

Almost all success in business comes down to execution. Toys R Us didn’t act. When all is said and done, they simply did not believe in the Internet and they paid the highest price. In an exponential world, the ability to not just act but to act quickly is priceless.

Related: 5 Answers From Digital Kungfu On Why Podcasts Are Your Best Self Development Tool

4. Move forward

No industry is immune. Let’s take podcasting for example. Our data shows that the addressable market for podcasts is already 16 million people; 50% of all podcast consumption growth over the last five years has happened in the last 12 months; and media consumption is shifting faster than we think into the on-demand space.

To address this exponential shift in media consumption, the Matt Brown Show is evolving from a podcast into a fully-fledged new media company. So, my question to you is simple: How is your business preparing itself for the future? EM


IN YOUR TOOLKIT

Get some perspective

the-innovators-dilemma-when-new-technologies-cause-great-firms-to-fail-by-clayton-christensenREAD THIS: The Innovator’s Dilemma: When New Technologies Cause Great Firms to Fail, by Clayton Christensen

While decades of researchers have struggled to understand why even the best companies almost inevitably fail, Clayton Christensen shows how most companies miss out on new waves of innovation.  His answer is surprising and almost paradoxic: It is actually the same practices that lead the business to be successful in the first place that eventually can also result in its eventual demise. This breakthrough insight has made The Innovator’s Dilemma a must-read for managers, CEOs, innovators, and entrepreneurs alike.

ASK WHY

Drawing from Matt Brown’s article, start implementing quarterly meetings that review the biggest challenges the company is facing, and start asking the question ‘why’ of even the most basic tenets that are being taken for granted.

The idea is to find a new perspective of the same problem.

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Performance & Growth

Too Big For Your Boots?

How to manage the complexities of a rapidly expanding business.

Greg Morris

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It may come as a surprise to many, but too much success too soon can result in a company’s failure. That’s often because the company out-runs its ability to sustain and control that success, and a decline follows.

Say, for instance, that an organisation reaches increasingly higher sales targets, but its infrastructure doesn’t scale at the same rate. Inconsistencies and weaknesses begin to appear in its management systems. Quality suffers, and, eventually, the positive trend plateaus and tips downwards.

The answer? Don’t misjudge the impact that business and management can have on realising a sustainable growth strategy. The systems you have in place today may not work when addressing new challenges – or, they may make it next to impossible for you to meet them.

Related: The Most Common Mistake with Global Business Expansion

If your organisation is on a growth path, consider these six elements:

1. The right talent

Develop a management system that measures accountability against specific standards and ensures that the quality of your products and services doesn’t waver. As service quality often depends on human capital, you’ll need the right mix of people at every level.

Give non-management employees the autonomy to contribute positively, and recognise them for it. They’ll reward you with good outcomes and ensure that the foundation of your growth is that much sturdier, while developing a robust working environment.

Identify the people in your organisation whose roles will be most affected by your expansion, and enable them to take initiative outside of their standard work requirements. This way, they’re more likely to get involved and help you to create new cross-organisational systems that address tasks in parallel.

2. Controlling quality

It’s easy to lose track of quality when your business is growing speedily, so give the task of maintaining quality to a loyal management team. Assign them the responsibility for overseeing everything from product development to internal systems and manufacturing.

It’s also important for you to remember that service-based organisations face quality concerns as they grow, and that finding the right talent (see Element #1 above) can be as limiting as a blockage in a production line.

Related: 6 Signs That You Should Stop A Business Expansion In Its Tracks

3. Processes that scale

Make sure that your processes and projects are executed in the same way every time. Don’t let your systems become un-scalable; establish which ones are most likely to come under strain as the company expands.

4. Manage cashflow

Numbers never lie. When your company is growing, beware of the danger of spending more than you can afford. More oversight or adjustments may be necessary to increase effectiveness, quality, and sales.

When determining if you’re going to front-load your capital investment, be confident that cash is coming into your account as a result of the investment. Remember that cash profits and accounting profit are very different. Cash profits are your bread and butter.

If you aren’t positioned to finance your own expansion and you require outside funding, carefully consider the pros and cons of getting into debt, as well as the length of the loan and interest rate.

Related: Expansion Funding Options For Your Growing Business

5. Finding investors

Conduct detailed research into potential investors, as each will have sector or industry interests, investment mandates, and value preferences. Pinpoint these, assimilate with them, and make sense of them before engaging.

Then, make the effort to thoroughly evaluate the potential investor. Do this by first determining where your interests are aligned and then uncovering:

  • The source of the investors’ capital
  • Their investment track records
  • The returns that they usually aim for
  • Their traditional risk profiles
  • Their investment mandates.

6. Communicating culture

Spend as much time determining, sharing, and entrenching your company’s current and growing culture as you do addressing your growth strategy.

With each new stage of growth, commit time and resources into making sure that the cultures of different departments don’t implode when put together – impacting on customers, important employees, or worse.

Make your employees aware of what the future will hold, how it is likely to affect them, and what the bigger picture looks like.

In essence…

No matter the size of your business or what your growth plans are, expansion can expose you to a host of risks. These may be existing problems that worsen, or new ones that are uncovered for the first time. Either way, it’s crucial that you identify them, prepare for them, and make plans to protect yourself in the face of growth.

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Driving Your Business Growth Towards More Customers

Designed to help its customers get the most from their businesses through the right telematics solution, New WEBFLEET can help you reach your customers quicker, get more done, improve efficiencies, save costs and boost your revenues.

TomTom Telematics

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Europe’s highly regulated operating environment has made telematics ubiquitous in business. On the one hand, this means industries across the spectrum have become safer, more efficient and highly productive across the EU. On the other, it’s much harder to stand out from the crowd when everyone follows the same best practice standards.

“We don’t have those same stringent regulations in place,” says Justin Manson, Sales Director, Africa at TomTom Telematics. “Our clients have realised what a huge competitive advantage this actually offers them though.

“Locally, everyone understands the role that telematics plays in tracking what your drivers are doing right and wrong, and use it as a tool for encouraging good driving practices, but there’s so much more to this solution, and we’re making it our mission to help business owners really use it to their benefit.

“When deployed across the organisation to its full capabilities, a telematics system can radically improve productivity and workflow. Done correctly, a business can save up to 10% on its bottom line, and redeploy that cash into the company’s growth, thanks to drivers reaching customers quicker and getting more done. The right data also increases productivity and ensures better turnaround times.”

Thomas Schmidt, MD of TomTom Telematics, loves visiting South Africa for this very reason. “Because so many business owners aren’t using telematics to their full extent, there’s such a huge opportunity for us to assist businesses in their growth here,” he says. “We deliver a high-value stack of products that can change the way companies operate, and most importantly help them save money and make money. The challenge for us is educating our customers so that they understand what our solutions offer, and the incredible impact they can have on a business. We consistently improve these solutions based on customer feedback as well, making them very much from customers for customers.

Related: Why Your Fleet Management Plays a Pivotal Role In Your Business

“Anyone can buy a map for less than R100. Why invest in such expensive devices? The answer is because we’ve developed solutions that change lives. With the right data — and access to that data — you increase safety, simplify your business, drive efficiencies, increase your output and customer service, and ensure you are always productive and reliable — across the organisation. And that impact can be measured, and given a real ROI value.

“Imagine the impression companies that operate at that level make on their industries. They stand out from their competitors. There is so much room for growth in South Africa as we deploy these solutions.”

Game-changing solutions

As an organisation, TomTom Telematics is focused on continuous growth and innovation as well, constantly learning from market conditions, its customers and industry needs to improve its product offerings.

The result is the launch of New WEBFLEET in February 2018. “We’ve increased the value we offer our customers,” says Thomas. “We’ve collated data from hundreds of thousands of customers around the world who gave us their feedback through surveys, and New WEBFLEET is a window into easy-to-use, smart fleet management that is a game changer for companies.”

“TomTom Telematics is in the business of helping businesses,” agrees Justin. “Our goal is help our customers master their challenges. The right data at your fingertips will help you change the way you operate. That’s our goal. How much cash is being left on the table in an organisation because of inefficiencies?”

Introducing New Webfleet

The smartest way to manage your vehicles and mobile workforce

tomtom-telematicsTomTom Telematics’ state of the art Software-as-a-Service (SaaS) fleet management solution, with best-in-class user interface, is inspired by two decades of working together with customers to achieve more for better fleet management. New WEBFLEET is everything you need to manage your vehicles in the cloud, in real time. It allows you to monitor reports and dashboards, manage orders/workflow, and improve driving behaviour, safety and service, helping you save fuel and reduce costs.

Best-in-class user interface

  • A future-proof platform with a completely renewed interface, based on the latest HTML5 technology and driven by continuous innovation.
  • Simple and clean interface, with minimised clicks for faster working.
  • Intuitive functionality, means it is more accessible for greater impact across your business.
  • User rights management and state-of-the-art data handing ensures the highest level of data privacy and data security.
  • Fast access to the right information.

Related: Fleet Tools Will Help You Get More Done In Less Time

Map view

Know where your vehicles are and where they have been. Different map options such as Google, Google Street View or satellite map are enriched with traffic information, giving you a more detailed view on what’s happening on the roads. Toggle between different types of information on the map such as traffic, addresses and areas and create specific views, so you only see the information you need.

Dashboard

New WEBFLEET’s dashboard gives an overview of performance at a glance. Up to 27 KPIs can be used to track the performance of vehicles, individuals, benchmark teams or give a simple overview. This helps you to track real-time performance against your pre-defined KPIs.

Reporting

New WEBFLEET gives you instant access to the information that matters, meaning you can spot trends over time and use real-time information to make smarter and more informed decisions. You can instantly download or schedule reports to help you stay on top of everything — from fuel efficiency and legal compliance to quality of service.

Manage on the move

New WEBFLEET is optimised so you can manage your fleet on any device by entering WEBFLEET through a web browser or by downloading the WEBFLEET Mobile app on your smartphone.

Send routes direct to drivers

  • Plan accurate routes in New WEBFLEET by adjusting multiple variables such as location, time of departure/arrival, traffic and vehicle type.
  • Get a choice of alternative routes, as well as suggested fastest route with traffic.
  • Customise your route by simply adding new waypoints, or dragging and dropping existing waypoints on a route. Then choose from guided or forced route* options.
  • Send planned routes directly to a TomTom PRO driver terminal to keep your drivers on the right track.

Related: Time Is Money And It’s Time You Saved Both When Running Your Fleet

Personalised Map views*

  • Create your own saved map view to reach information you need fast.
  • Switch between vehicle groups or areas, without needing to adjust the map filters and zoom levels. n

Personalisation

Many ways to customise WEBFLEET to suit individual requirements from personalised views to adding information to make what you see more informative on one page.

Plan a route the way you want it

Use multiple variables (including waypoints) to give fastest or most efficient routes.

Access WEBFLEET

Across different device types, allowing you to always stay on top of business.

Simple, clean and easy to administer

Toggle between views to get the right information to focus on the task in hand. Get the right information to the right people at the right time, keep data secure and in the right hands.

Send routes to driver terminals

In real time, ensure drivers follow or avoid specific routes.

Visit telematics.tomtom.com/tellmemore and follow us on Twitter @TomTomWEBFLEET

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