Business Black Holes

transcript

@TheBusJourney #SMEJourney

The Business Journey16 February 2016

Business Journey Partners

Jim Henderson

The Business Journey

“Black Holes”16th February 2016

Outcomes

• Awareness & understanding around black holes• Introduction to Growth Strategy – “Jump”• Introduction to Capacity – Controlled Growth• What’s my number?

Exercise

The Investors’ Viewpoint

GrowthThis contextually is a growth curve, not revenue

It represents grow, then invest, grow then invest.

2 Black Holes, 4 Cycles of Growth

2 Black Holes,4 Cycles of Growth

£750K

24m2 Black Holes,4 Cycles of Growth

JUMP – Black Holes

£750K

£170m

£700m

£14bn

Black Hole

• All businesses go through predictable stall points – what we’re calling ‘black holes’ because businesses can disappear into them for many years

• Most black holes are due to insufficiencies in the underlying organisational structure

• Avoiding black holes requires structural changes which when complete allows increased revenues

Growth - Grow Revenues AND Build Infrastructure

Black Hole Reach

Black holes have a radius around them and suck everything in their path e.g. from 600k onwards you feel the effects of the black hole and it is hard to escape from 750k to 1.2m

Capacity

Capacity is the maximum revenue achievable in your business, given available resources today

Capacity

More Capacity to Earn More Revenue

Controlled Growth

Next Steps – Strategic Growth Questions

• Why grow my business?• Why now?• What does Growth look like for my business?• What’s stopping us?• What’s the strategy?• How much are we going to invest?

Income Follows Investment

Income Follows Assets

Confidence to Change Courage to Invest Freedom to Choose

Shirlaws GroupSupporting private enterprise on their business journey to…

1 May 2023

Thank YouJim Henderson– Shirlaws GroupE: jim.henderson@shirlawsgroup.com M: 07817 745958

Jim Henderson Questions?