Date post: | 18-Oct-2014 |
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Business |
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VISIT US AT www.shirlawscoaching.com
More money More time Less stressThe business owners’ guide to creating
a profitable, sustainable business that
rewards you richly in time and money
John Rosling
2
“Your motivation is never money, money is only an end result. Your motivation is more likely freedom.”�6LPRQ�6LQHN
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www.shirlawscoaching.com www.shirlawsonline.com��
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6
STEPPING UP TO A LEADERSHIP ROLE
“There is no map. No map to be a leader.” 6HWK�*RGLQ
7
CHAPTER 1: UNDERSTANDING CONTEXT
“The main thing is keeping the main thing the main thing.” *HUPDQ�SURYHUE�
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9
CHAPTER 2:
UNDERSTANDING THE POWER OF “WHY” �
“Knowing the why can inform your actions as a brand, your brand voice, its character, and everything else that helps build it into something people want to have a relationship with.” 6LPRQ�6LQHN
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12
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13
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�� Find the fundamental “why” in your business - and create a strong sense of belief around it.
14
CHAPTER 3: UNDERSTANDING YOUR ROLE AS LEADER �
“While Management is operationally focused, setting priorities, allocating resources, and directing the execution, Leadership is more forward thinking, more about enabling the organization, empowering individuals, developing the right people, thinking strategically about opportunities, and driving alignment.” 5DQG\�.RPLVDU
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15
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16
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17
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�� Set the context; manage the energy; coach don’t play
18
CHAPTER 4: LEADERSHIP IN ACTION – CREATING THE WHY�
“How do you get people to come together around a goal and objective and be great? It’s establishing a sense of common purpose. Greatness doesn’t come from a tactical sense of execution. Greatness comes having a vision that goes beyond yourself and even beyond the organisation” 5DQG\�.RPLVDU
“When people believe in what you believe in, they work with their blood, sweat and tears. When they don’t believe in what you believe in, they work for your money.” 6LPRQ�6LQHN
19
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�� A strong culture will drive your success by recruiting the best people and most loyal customers. Culture comes from a discussed and agreed intent based on shared values.
�� Leadership is about creating the dream – the vision thing is your job.
�� All successful Leadership Teams get away on a Strategic Retreat every 6 months.
�� Get outside help.
24
UNDERSTANDING YOUR BUSINESS
25
CHAPTER 5: UNDERSTAND YOUR BUSINESS CYCLE
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28
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723�7,36�
�� Know where you are in your business lifecycle and plan ahead.
�� Know where your key Directors or Partners are and understand how this impacts on your relationships and decision making.
�� Build in now the skills and capabilities your business will need to grow in the future.
29
CASE STUDY:
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30
CHAPTER 6: UNDERSTANDING RISK IN A STRATEGIC CONTEXT
“Take calculated risks. That is quite different from being rash.” *HRUJH�6��3DWWRQ�
“There are risks and costs to a program of action. But they are far less than the long-range risks and costs of comfortable inaction.” -RKQ�)��.HQQHG\
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31
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32
723�7,36�
�� Benchmark the Risk Profile of your key team and openly discuss the implications of these.
�� As part of your Strategic Retreat agree a Risk Profile for your business
�� Have the Board mandate the Business Risk Profile and Risk Management processes to ensure that all future decisions are made by looking at cost, return and business risk.
33
CHAPTER 7: BECOMING A GREAT COMMUNICATOR$QG�ZK\�����RI�\RXU�FRPPXQLFDWLRQV�FRXOG�EH�PLVXQGHUVWRRG���
“If there is any great secret of success in life, it lies in the ability to put yourself in the other person’s place and to see things from his point of view.” +HQU\�)RUG
“Give me the gift of a listening heart.” .LQJ�6RORPRQ�
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34
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35
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CASE STUDY: UK entertainment company
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37
723�7,36�
�� Listen to the questions being asked, take a moment before you respond
�� Ask yourself what state/style the person speaking to you is in
�� If the person asks you a “how” question they are in Think, a “what” question they are in Feel, a ”why” question they are in Know.
�� Get yourself and your team profiled. It costs less than £25 and is both fascinating and incredibly valuable information (www.navitasip.com)
38
CREATING REVENUE TODAY
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39
CHAPTER 8: PRODUCT – THE FOUNDATION OF YOUR BUSINESS
“Make your product easier to buy than your competition, or you will find your customers buying from them, not you.” 0DUN�&XEDQ
“The essence of a successful business is really quite simple. It is your ability to offer a product or service that people will pay for at a price sufficiently above your costs, ideally three or four or five times your cost, thereby giving you a profit that enables you to buy and to offer more products and service.” %ULDQ�7UDF\
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40
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CASE STUDY: La Playa Insurance
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45
723�7,36�
�� The more products and distribution channels you can build, the more profitable and valuable in equity terms your business will be.
�� It’s a strategic choice whether to focus on building products to sell into a single distribution channel or to develop multiple distribution channels for a single product.
�� By getting really clear about what customers are paying you for you may be able to unbundle your product and charge very profitably for the bits you currently give away. Or take an opposite approach and bundle a set of products together to create a competitive advantage to capture share and increase the volume of sales.
�� Look carefully at what your competitors are doing – and consider adopting the opposite approach to create competitive differentiation.
�� Innovate your product packaging; it is hard work to create completely new products but relatively easy to repackage your existing offer.
46
CHAPTER 9: YOUR INTELLECTUAL PROPERTY - THE ROCKET-FUEL IN YOUR BUSINESS
“Our value is basically our IP and its deployment.” 5RE�YDQ�GHU�0HLM
“The traditional business designs a product and sells it to create a major product stream. But the more advanced business model is built on intellectual property (IP) to generate much higher value than the traditional “product only” business.” 'DUUHQ�6KLUODZ
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723�7,36�
�� Know your “IP”; it is the fundamental rocket-juice of your business, what makes your business unique and is the source of profitable growth through product innovation.
�� When you’ve articulated your IP, take yourself out of your own business and ask yourself what a business with this unique set of attributes might theoretically do (what products would it sell). It’s a good idea to get external help with this as you are probably too close to your business.
�� Understanding and leveraging your IP will create a fundamental building block to accelerated equity value of your business.
50
CHAPTER 10:
POSITIONING – YOUR KEY FOCUS
“In almost any industry, the big winners are companies that consumers instantly associate with a single highly-focused concept - like Heinz and ‘ketchup’, Volvo and ‘safety’ and Federal Express and ‘overnight’. ” 5LHV�DQG�7URXW
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56
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�� For mid-sized business positioning is about getting customers and employees focused on what the business is all about – what it is famous for. Being able to answer this succinctly enables you to fast track sales opportunities, distribution channels, potential acquisitions, mergers and joint venture opportunities.
�� Understand your primary position - If you cannot get the distinction between Distribution and Product then get some assistance from outside.
�� Know whether you are focussed on market, service, product or price. Come up with words that define your market, your service, your product, your price. Get it down to one word per area and then one single word that positions the whole of the business.
�� Cherchez le creneau….
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CHAPTER 11: THE SALESFORCE THAT NEVER ASKS TO BE PAID
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�� Set down the criteria for potentially profitable clients i.e. what type of business is going to grow your company profitably?
�� Explore which companies might offer mutually beneficial relationships. Check that both of you have similar ‘energy’ levels.
�� Rigorously explore fears and benefits and ultimately formalise guidelines on working together and monitoring progress.
�� Review the relationship in terms of profitability. If it isn’t providing business for both parties it’s not worth wasting resources on it.
�� The more distribution channels you can build, the more profitable and valuable in equity terms your business will be.
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CHAPTER 12: DRIVING ENERGY INTO CUSTOMER, DISTRIBUTION (AND STAFF) RELATIONSHIPS
“Here is a simple but powerful rule - always give people more than they expect to get.” 1HOVRQ�%RVZHOO�
“There’s a place in the world for any business that takes care of its customers-after the sale.” +DUYH\�0DF.D\�
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�� Develop a customer service strategy that is focused on putting client relationships in the up position
�� Aim for four satisfactory ‘touches’ with each customer.
�� Ensure that your customer really understands when you are giving him an “extra”. Beware! Once an extra becomes an expectation, it is perceived as part of your standard service.
�� Have an extra strategy for your staff as part of your culture.
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CHAPTER 13: CREATING REVENUE – A FINAL THOUGHT
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Protected by Copyright © 2007 Shirlaws
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GETTING YOUR BUSINESS TO WORK FOR YOUAnd give you back your time...
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70
CHAPTER 14: THE FULLY FUNCTIONAL BUSINESS
“So much of what we call management consists in making it difficult for people to work.” 3HWHU�'UXFNHU��
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CASE STUDY: Elle Events
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75
723�7,36�
�� If you’re serious about growing your business structuring and resourcing must be a strategic function and not one that is dictated from the bottom up.
�� Systematically colour-code your typical week in red, blue, and black.
�� Create an organisational structure and workflow in red, blue and black.
�� If you want real productivity you can’t give people responsibility – they have to take it.
76
CHAPTER 15: CAPACITY PLANNING - THE SECRET TO CONTROLLED PROFITABLE GROWTH
“A very good question to ask as you develop your business goal setting strategy...do you have the capacity and capability to realise the future?” 3HWHU�'UXFNHU��
“It is usually easy to gauge which businesses have a capacity issue. They are the ones that feel busy, but are not profitable. Ones where staff seem to be working flat out and yet there’s no time to take on more work or plan where the business is going.”'DUUHQ�6KLUODZ
77
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79
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723�7,36�
�� Know the capacity of your business and current running rate – these enable you to plan and develop a profitable growth strategy for your business.
�� Understand where the bottlenecks that choke the profitability of your business are – and release them.
�� Understand the difference between Platform Strategies and Growth Strategies and use these to maximise profitability today and plan your growth tomorrow.
�� Develop a Capacity Plan and use this as a daily management tool.
80
BUILDING EQUITY VALUE AND EXITING YOUR BUSINESS
81
“When it comes to unlocking the market value of a privately held company, it is not limited to the bottom line. Profitability is hugely important, but the factors of customer diversity, management depth, proprietary systems or products and technology, channels to market and contractually recurring revenue and brand and position can result in truly significant premiums over traditional valuation approaches.” 'DYLG�.DXSL�
82
CHAPTER 16: WHAT REALLY DRIVES EQUITY VALUE
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85
CASE STUDY: Travel and Conference company
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723�7,36�
�� Start planning for your exit from the business 5 years before you want to make the change. Understand your own priorities; is it income, equity or control?
�� If you have developed the business strategically, the valuation multiple you can achieve increases significantly.
�� Build a strategy for increasing the valuation of your business and your own exit strategy simultaneously.
�� Develop and build a Company Log Book.
86
CHAPTER 17: LEAVING YOUR BUSINESS IN GOOD HANDS
“Many business owners say to me “I’m going to exit in five years” and yet when we ask them a year later, they say the same thing. It’s a permanently moving target – an aspiration not a strategy.” 'DUUHQ�6KLUODZ�
“The great leader speaks little. He never speaks carelessly. He works without self-interest. And he leaves no trace. When all is finished, the people say, ‘We did it ourselves’.”/DR�W]X�IURP�WKH�Ҋ7DR�7H�&KLQJҋ
87
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89
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723�7,36�
�� Take some time to understand what you want to get out of the business, and when.
�� There are four elements to a succession plan: Building Value, Timing, Establishing Independence in your business and Understanding your Priorities.
�� Use a ranking of income, equity and control to understand the relative priorities of a potential succession candidate or acquirer.
90
MANAGING YOUR OWN ENERGY“Awareness is the greatest agent for change.” +D]UDW�,QD\DW�.KDQ
“Be the change you want to see in the world.” 0RKDQGDV�.�*DQGKL
91
CHAPTER 18:
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ABOUT SHIRLAWS“The best business advice I ever received? Get a business coach.” (ULF�6FKPLGW��&(2��*RRJOHZZZ�\RXWXEH�FRP�ZDWFK"Y \9IHH][P<F$
“Where I think a business coach adds value is providing a space for business owners to step away from the business for a period of time, and focus on high-level issues. In addition to providing the space to do this, a coach also makes sure it happens despite whatever crisis happens to have arisen that day.” :D\QH�'DYLHV
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“We became a coaching client in November. Our revenues are up 31% in January, 24% in February. I wish we’d become a client three years ago. What a business we’d now have!”5DMDQ�$PLQ��&(2�&RYHUVXUH�
“The most transformational part of working with Shirlaws is the hands-on skill transfer into our business that generates additional profit.” ,DLQ�0F0DWK��&(2��6RGH[R�3DVV�8.
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VISIT US AT www.shirlawscoaching.com
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