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Business Growth / 12 posts found

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Understanding your working capital to maintain business success

by mike tombs
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If cashflow is the lifeblood of your business, then working capital is the health check you should regularly undertake to keep your business alive. Regularly checking working capital will play an essential part in maintaining business success during these times of greater economic insecurity.
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Create a one-page business plan

by mike tombs
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To make a success of your business, you’re going to need a robust business plan - particularly as we face challenging times. With a one-page business plan behind you, the company has a real sense of strategic direction and a set of core goals to refer to and track against. But what are the key elements to include in your one-pager business plan? We’ve listed some of the foundational areas to cover, so there’s real purpose behind your return to trading. What to include in your business plan Lots of online resources will suggest that a business plan is an [...]
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Understanding your revenue drivers

by mike tombs
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For your business to make money, you need to generate revenue. You produce revenue through your usual business activity, by making sales, getting your invoices paid, or taking cash from paying customers. So, the better you are at selling your products/services and bringing money into the business, the higher your revenue levels will be. But what actually drives these revenue levels? And how do you get in control of these drivers? Knowing where your cash is coming from is more crucial than ever As a trading company, you face the multiple challenges of a global recession, an increase in online [...]
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Reinventing your product and service offering post-Covid

by mike tombs
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During times of crisis, we’re forced to reinvent the way we work and what we work on to remain sustainable. From technology adoption to product innovation and blowing up stale processes, a crisis forces us to start with a fresh page and plan for a better, more resilient business. Four ways to reinvent your business post-Covid: 1. Innovate. Defined as ‘the introduction of new things, ideas or ways of doing something’. What new behaviours or needs exist in your target market and how can you create a new product or service to meet these needs?2. Re-engineer. How can you change and improve [...]
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8K – Hub and Spoke

by mike tombs
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Today is the final day on the 8 Key Drivers of Business Value! If you’re a business owner working too many hours a day, too many days a week, then this driver will apply to you – Hub and Spoke. If you imagine a spoked wheel, every piece of the wheel is tied to the centre. As a business owner, you make up the hub of the business, with every individual piece being tied directly to you. Hub and Spoke is down to how dependant your business is on you personally. If your customers are coming to you for everything [...]
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8K – Customer Satisfaction

by mike tombs
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We’ve hit week 7 on the 8 Key Drivers of Business Value! An easy but often overlooked concept for this week – Customer Satisfaction A lot of businesses tend to shy away from asking their customers how satisfied they are – probably because they’re scared of what the results might be. But is that really a good way to run your business? “You can only manage what you measure” is a popular phrase around our office, but it’s applicable in this case too. A very popular indicator of customer satisfaction is the Net Promoter Score, which asks two questions: How [...]
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8K – Monopoly Control

by mike tombs
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Onto week six of the 8 Key Drivers of Business Value – Monopoly Control And no, we’re not talking about the board game, and neither are we suggesting the sort of monopoly the likes of big energy companies or Microsoft have. The important things here are how well you hold onto your niche, and what makes your business unique. This fundamentally comes down to two main questions: What makes your business unique? Do your customers care? If you can satisfactorily answer both of these, you’re well on your way to something special. The plus side? You’ll have more control over [...]
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8K – Recurring Revenue

by mike tombs
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Onto week 5 of the 8 Key Drivers of Business Value: Recurring Revenue! Having a reliable and consistent source of income without having to fight for every sale tooth-and-nail will not only make your business more valuable, but also far less stressful. There are six main types of recurring revenue, which I will put in order from worst to best: Consumables - disposable products like toothpaste Sunk-money consumables – a customer invests in an item (called a platform) and buys supplementary items along with it. Razorblades are a good example. Renewable subscriptions – fixed-term subscriptions such as with magazines Sunk-money [...]
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8K – The Valuation See-Saw

by mike tombs
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Week four – the Valuation See-Saw ‘Cash is king’, or so they say. And they’d be right! Nobody wants to worry about the bills that are coming out, so ensuring that you have cash in your business account can really help reduce some of the stress. It can also cut down on interest if you find yourself regularly taking out loans. Getting a better grip on your cashflow can be a tricky process, and it often involves a lot of moving pieces. But consider the following if you’re running into trouble: Renegotiating your supplier terms to pay later, and your [...]
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8K – The Switzerland Structure

by mike tombs
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Week 3 of the 8 Key Drivers of Business Value: The Switzerland Structure A business' value requires that the business not be overly reliant on any one customer, employee or supplier. This is quite a big subject, so this is just a quick overview. Post a comment if you’d like anything expanded upon. How can we get more independence? With customers, the danger point is around 15% of sales. The simple answer is to get more customers – but it’s never that simple in reality. You can also have a look at any low-margin products you’re selling and dropping them. [...]