Every business needs to be steered towards the "Owner's Vision."
Most Business Owners either start up or buy a business for various reasons, more money, to create a better life for themselves and their family, have more free time. However, it may not be smooth sailing. Over time the business moves from being a profitable small operation to a larger one that either loses money, or only pays basic wages to the owner, with no additional profits or dividends. In many cases the owner often has to dip into their home equity or borrow on credit cards hoping that tomorrow will be better. Without a clear understanding of all the principles that make a business successful, the financial situation often doesn't change and the business just drifts from year to year.
Our Business Success Partners can get you back on track with your dream.
Where does your business fit in?
From the diagram, you will have an idea of where you are on the triangle.
Do you feel like a WORKER, OWNER or DIRECTOR in your business?
Your answer to this often reflects whether you are in Rescue, Improve or Grow.
Rescue
• Do you feel like the WORKER in your business?
• Are you not earning enough money and sometimes having to put money in to the business?
• Is the business basically you?
• Do you spend time working IN the business putting out fires?
• Is your main focus juggling cash?
As your Business Success Partner we can help give your business the immediate attention it requires with a number of strategies to release cash into the business.
Profitability needs to be established and fixed first so that the business can be stabilised before it's too late.
Improve
• Do you feel like the OWNER in your business?
• Does your business make money, but not quite reaching its potential?
• Do you have a well established business?
• Would you like to have more time to work ON the business?
• Is your main focus stability and staff?
Often there is significant "latent profit" in the business that should be adding to the income being made by the owner.
As your Business Success Partner, we will unlock the potential of your business, by properly strategizing the growth path of the business and working on all the critical areas to make your business more profitable. Get in touch today!
Grow
• Do you feel like the DIRECTOR in your business?
• Does your business make good money?
• Does your business have excellent cash flow?
• Is the team running the business?
• Do you have time to work ON the business?
• Is your main focus strategy and planning?
Opportunities exist to take the business to the next level. The right strategy needs to be developed with a clear plan, proper management and implementation across all areas of the business.
Many businesses lose profits and slip backwards from grow to improve. Get in touch today and don't let yours be one of them!
The Business Triangle
How should a successful business be put together?
Most owners start their business with a product or service (at the base of the triangle) and they find customers. Once these sales and marketing tactics have established the business, the owner finds they need to manage their finances as expenses and wages start to eat away at their profits. This is when the owner needs to start controlling all areas of the triangle otherwise the business will start controlling the owner. Most business owners will usually focus on the day-to-day operational elements (red areas). Often this leaves very little time to plan for growth by working on the strategic elements (green).
Strategic Elements (Planning)
The "Strategic Elements" (green) are where the owner works ON their business starting with a clear path for growth towards their vision. The strategy needs developing to take the business towards its vision. This planning process will change the way the day-to-day activities are approached and improved. Without time spent on the Strategic Elements, businesses tend to get bogged down in the day-to-day running and do not achieve their growth potential. Not only is the owner unclear on how the business will grow, there is usually no plan that spells out to the staff where the business is going and the role they will play in getting it there. In this scenario, the owner finds themselves fighting fires rather than proactively growing the business.
Operational Elements (Day-today)
This is the day-to-day running of the business that takes up most, if not all, of the owner's time. The Operational Elements are where ConsultX's unique "Business Diagnostic" will find strategies to increase the income the owner is taking out of the business. This can be quite substantial if the business has been operating for a long period of time.
Business Diagnostic
What income should you be able to make out of your current business?
Many businesses have a reasonable turnover, but most of the money that comes in the front door gets spent out the back door.
Every business owner has the opportunity to put more of this money into their back pocket. To do this, they need to know where the immediate opportunities for increasing income are and the dollar value of what they are worth.
The Business Diagnostic identifies where the opportunities are for additional income across 11 core areas of your business. We call this profit leakage.
The difference between the income you currently make from your business compared to what you want it to be can be referred to as "Profit Leakage or an Income Gap". The Business Diagnostic assesses the ability of your current business to close this gap.
The Business Diagnostic looks at 11 key drivers that determine the "Income Potential" that your business should be able to provide you with.