Richard Gourlay picture, of management consultant, strategist and author,

Success in Business: Starts with the END in mind

Here’s a simple question to any business owner, why are you in business? The flippant answer  I often hear is to make money.  An honest, if not inspiring answer, but there is a fundamental flaw in that statement which many business owners fails to comprehend. They start a business, typically through experience in, or a passion in the field or because they have seen an opportunity to make money, but fail to achieve that ultimate goal because they fail to plan their exit strategy.

If you can’t get out making the money you intended to when you sell up then why did you set up the business in the first place? You have a great idea, you work on it, and spend your energy (and life) building it until it becomes you. It succeeds and you enjoy the lifestyle it brings then the challenge of maximising that income to free yourself up and retire or dd something else with your success.  That final stage often becomes impossible because you are the business and it is you, its lifeblood, main cheerleader and driving engine.

This typical scenario of being a business owner, is driven by the passion to run the business day-to-day overshadowing the failure to plan your exit strategy from the start. That is building a business with a clear objective to enable the owner to get out and maximising your income from what you have achieved. Nearly all business owners focus on building a successful business, not on making sure they maximise their returns from the successful ownership of the business.

The real payback from all that hard work in creating and setting up a business for an entrepreneur is the final payback, it is in the shareholder value being realised by a sale of that business. Few owners think about realising their shareholder value, being more interested in the Profit and Loss than the Balance Sheet when making key decisions about the business. That approach is effectively summarised in the phrase; the turnover is vanity, profit is sanity and cash is king, a great motto in the running of any business, but it does not hold true in achieving exit strategy success as a business owner.

Achieving shareholder success is the only motto to follow if you want to have a saleable asset, then owners need to focus of developing an exit strategy which achieve their personal goals.  While profit and cash rule the day, building a valuable asset requires building shareholder value, through building sustainable long-term profitability

Success in business requires owners to build a business which you own but are not concreted into the foundations of its success. Building a forward strategy for your business is a vital first step in building your exit strategy, it is the old adage that you need to work on it not in it which underpins all successful entrepreneurs.

Short-term profitability is always an important goal, but long-term share value is a strategic consideration which owners need to consider in building the value of their business. If you would like to discuss this article further or further information about our services in working with business owners in achieving  successful exit strategies then contact us at enquiries@cowdenconsulting.com or see our contact page for further options.

Do you have a plan for Growth?

Do you have a plan for GROWTH? 

Leadership is most often identified as someone with a clear vision to grow their organisation, of where it is to where you want it to be within its market. By definition, that means looking for and finding growth.  All leaders must focus on looking for growth and development of their organisation if leadership is going to be seen as successful. But many leaders do not have a plan for growth within their organisation.

Leaders need a plan for growth

Do you have a clear vision of where you are going to take your business?  From understanding the market and its direction to where your business needs to be within those sectors, to profit from the growth within the market.  Leaders need to be strategically aware of their market if they are to find and focus on growth within their organisation.
Leaders must also redesign their organisation so that it can take advantage of growth opportunities, redesigning how a business operates to increase turnover and / or profits is at the heart of ensuring a leadership team has plan for growth.  Revitalising the sales and marketing operations is at the heart of acquiring more clients and developing improved relationship structures with customers and channel partners.
With a plan for growth leadership teams can reduce the amount of down time and focus their efforts on driving your business forward, with a clear vision of where you are going and why.  Successful businesses develop strategic plans to move their business forward, to grow and succeed, while being in control.
The first role af any owner or director is to have a plan, from star-up onwards (not for the banks) but for you to own and deliver. That plan needs to be kept alive, fresh and driven to focus on success and succeeding.

GROWTH needs a Strategy

strategy is a researched approach by the leadership team, supported by a detailed plan of continual action steps to get the organisation to where you want it to be. The reason strategies are so vital is they keep things moving, and in business, if you are not going forward, you’re going backwards, and that can happen very fast.  So, if you want your business to be successful and/or pay you more, having a strategy that focuses on growth is a must!
If you have no formal strategy to take your business to the next level you need to refocus your priorities right now to create growth, here’s the first stage of a growth strategy framework:

Create a clear vision of what you want to achieve:

There’s an old saying that you can’t hit a target you can’t see. Well your vision is your target. Your vision needs to be very clear in terms of what you want from your business, by turnover, profit, customer type or all three? What’s your ideal position in that market, do you want to be known as the premier supplier of your product or service, or a low cost or niche player?
What about your personal goals to support your lifestyle?  You need to be very clear about what you want and what you don’t want. Have a clear focus that will keep you aligned with your long term goal for you and your business. Make your vision aspirational, where do you want your business to be within the net 3 to 5 years? What will it look like and what will the business feel like to be part of?

Looking for Business Growth

Starting with a clear vision for growth within a business is the simplest and most powerful way a leader can motivate everyone. Growth is about understanding the drivers of growth within your business sector.  Knowing where a market is going requires leaders to step out of the day-to-day operational detail and focusing on the drivers of your market.
Growth is fundamental to a successful company. Finding growth does not mean just looking for growth in turnover, growth in profitability is by far the most valuable growth any leader can find. Growth can also be found in winning new market entrants; cross selling penetration to existing customers; launching  innovative products and services or premium pricing of scarce products.  Other profitable ways to grow your business include driving demand of premium and unique products, where your business has or can create a competitive advantage.
Like to learn more about creating growth for your business, then get in touch with us through the links below.
Cowden Consulting provides Strategic Planning Workshops which enable owners to create their vision of what they want to achieve. Our SPW faciliated workshops provide the opportunity for owners to work on their business not in their business. To learn more about Strategic Planning Workshops (SPW’s) or contact us by clicking Cowden Consulting to discuss your needs, or go to our website www.cowdenconsulting.com to learn more about us.
Learn more click here to read more about Richard Gourlay 
Taking strategic action to improve your business startup success

Where Does Tomorrows Growth Come From?

Where does tomorrows business growth come from explains why it is important for leadership to use business planning tools to effectively plan their growth.

Being successful in business is all about seeing the bigger picture and understanding future growth. For a business to grow and develop the leadership team must invest time in stepping back from the day-to-day operations of the business and focus on working on the business, click the slide presentation below to learn why….