7 fundamental requirements to grow your business by ten times!
February 16, 2015
Hi, I need your help badly. I have joined every conceivable networking sessions, entrepreneurship program and even signed up for expensive coaching. But I am still barely scraping $100,000 for my business when everyone says that I can make at least a million. Can you share with me what it takes to join the million-dollar club?
At Wits’ End
Dear At Wits,
Congratulations on your tenacity and willingness to stay the course. Putting all those resources to becoming better is, undoubtedly, not easy; and more importantly, requires a deep faith in your business. I must say that this is one of the ingredients required to break the million-dollar club.
But as you have discovered, self-improvement is not enough. Being a business coach in a multi-million-dollar company, I understand that there are fundamental requirements for any business to grow your business 10 times. Although I can make light of it by saying, “Double the number of customers, and get them to rebuy 4 times in a year,” the answer is a little more complex. And yet, increasing customers and increasing rebuy rates are KEY for dramatically increasing your business. So my answer for you today will discuss the 7 fundamental requirements for growing your business ten times.
1. A targeted customer profile
Who are you selling to? Can you articulate that clearly and distinctly? Do you know what exactly they need? Do you know how to reach out to them and get them to buy from you? These are all very important customer questions that you need to clarify so that you can attract them into your business. If you don’t know who they are, what they need, and how much they are willing to spend to get them, then you will find yourself languishing in business limbo.
2. A necessity product
If yours is a necessity product, you can be assured that people will buy from you. Everyone needs to eat; everyone needs to wear clothes, everyone needs to move about; everyone needs to be connected. So food, clothes, transportation and telecommunication are good necessities. But that is not all. When you understand your target market well, you can uncover necessities within them that may be missing. And that missing factor – be it convenience, a monopoly product, or a one-in-a-lifetime experience – will allow you to attract and retain your customers.
3. Short sales and consumption cycles
If it takes 3 months to get a customer to buy your product, which will last the next 3 years, you are going to need many different products, and many sales people, pushing the products for you. That requires a huge inventory, a huge sales staff, and, ultimately, leads to very low margins. You might end up feeling like you are working very hard for very little money. As far as you can, offer products that can be consumed quickly and have reasonable margins. If your customers can serve themselves as they consume your product, so much the better!
4. Multiple products
This brings me to the next point – offering multiple products. If you only had one product, you can only serve your market a limited number of times. But if you had more complementary, and supplementary products, you can engage your customers over and over again. You don’t have to produce all of them by yourself; partnerships can broaden your product offering in the most efficient manner. Of course that means you need to be partner-worthy, another key ingredient that will take you to the million-dollar market, something which we will discuss shortly.
5. Resell, resell, resell
If “location, location, location” is the key tenet for property investment, then the mantra for business growth is, “resell, resell, resell”. We all know that the cost of acquiring a new client is much higher than selling to current ones, so it makes more sense to keep selling to your current clients – either more of the same, or more to the same. Pair this with short sales and consumption cycles, and you have a much higher long-term value for the customer.
6. Partner with other businesses
We cannot offer all the different complementary products needed by our customers. But we can partner with those who do offer those products and create a bundled solution that no one else can beat. This will allow us to resell, resell, and resell again. Of course, you have to be partner-worthy, and to be able to attract the right partners to play at a higher level. This is an important strategy for you – building your partner-worthiness as you build your business!
7. Protect your golden goose
Lastly, protect your golden goose. Ring-fence it with continuous improvement. Continuously increase the level of your service and the quality of your program. Allow your customers to participate in what they want to see as the solutions they need in the future. The more you engage with your customers, the more they will repay with their loyalty. You can never rest on your laurels if you want to make ten times more revenue!
Working through the seven fundamentals
So there we are, At Wits, 7 fundamental requirements to grow your business ten times. They are really quite simple, except when you get caught up with legacy issues. One of the key “problems” that researchers have identified with Singapore SMEs is that they are caught up in “old-world” systems. Their processes have evolved over time such that they are now locked into an unproductive and complicated process. These processes latch us into the type of business we are in, the profile of customers we have, and the sales cycles we endure. We work around them, rather than work through them. In the end, we don’t grow because of our own little world. We don’t grow because we feel so secure in the way we do things. We don’t grow because we don’t take the time to move out of our microcosm to see the bigger world. And then, we shrink. So the questions for you are:
How many of these seven fundamentals do you have?
What do you need to get from where you are to where you want to be?
What do you need to change, and what do you need to hold on to?
Who do you need to partner on your journey to the top?
Let us help you
Do you need help working through your processes and applying the 7 fundamentals in your business? We have consultants on stand-by to help you transit from a $100,000 business to a $1,000,000 business in a year! Drop me an email at email@example.com for more information!