Business Improvement Strategies

Business ImprovementBusiness Improvement

• Biggest long term threat to small businesses is driftBiggest long term threat to small businesses is driftLack of focusLack of focus

Vague planningVague planning

Reliant on luckReliant on luck

• Manifested in:Manifested in:Moribund or patchy growthMoribund or patchy growth

Falling sales, margins & profitsFalling sales, margins & profits

Poor customer retention and satisfactionPoor customer retention and satisfaction

Problematic cashflowProblematic cashflow

SolutionSolution

• PlanPlan

• MeasureMeasure

• FocusFocus

PlanPlan

• Where do you want to be in:Where do you want to be in:12 months?12 months?

2 years?2 years?

5 years?5 years?

• Write down your targetsWrite down your targets

• Break down into smaller chunksBreak down into smaller chunks

TargetsTargets

• On a beach in the BahamasOn a beach in the Bahamas

• SMARTSMART

• 5 more customers by the year end each 5 more customers by the year end each spending £5,000 per monthspending £5,000 per month

How will you get there?How will you get there?

• Where are you now?Where are you now?

• How do you run the business now?How do you run the business now?

• What behaviours do you need to change?What behaviours do you need to change?

• What extra resources do you need?What extra resources do you need?

• Concepts e.g.Concepts e.g.• Power of 1%Power of 1%• Operational leverageOperational leverage• Cash cycleCash cycle• Value chain analysisValue chain analysis

MeasureMeasure

• Find out where you are now Find out where you are now

• Where do you best apply resources to get where Where do you best apply resources to get where you want to go?you want to go?

• Financial measures (mostly)Financial measures (mostly)

• Key weekly / monthly measuresKey weekly / monthly measures

• Leading indicatorsLeading indicators

• Structured around achieving set targetsStructured around achieving set targets

• CommunicateCommunicate

• What gets measured gets doneWhat gets measured gets done

Measurement vs. PlanMeasurement vs. Plan

• Feed back into your planFeed back into your plan

• Compare & actCompare & act

• How does it relate to success?How does it relate to success?

• Cash is a key measureCash is a key measure

• PredictionPredictionKnow your leading indicatorsKnow your leading indicators

What influences them?What influences them?

Roll them forwardRoll them forward

FocusFocus

• Stay on planStay on plan

• Stick to the knitting – don’t be distractedStick to the knitting – don’t be distracted

• Know your marketKnow your market

• Know your customersKnow your customers

• Know your competitionKnow your competition

• Organic vs. acquisitiveOrganic vs. acquisitive

ConclusionConclusion

• PlanPlan

• MeasureMeasure

• FocusFocus

• Take expert advice – enlist professional helpTake expert advice – enlist professional help

• Realise your own limitationsRealise your own limitations

ContactContact

Steve GriceSteve Grice

Business Development ManagerBusiness Development Manager

Black Country Reinvestment SocietyBlack Country Reinvestment Society

07875 76265907875 762659

steve@bcrs.org.uksteve@bcrs.org.uk

http://stevegrice.wordpress.comhttp://stevegrice.wordpress.com