Business Growth / 15 posts found
8K – Recurring Revenue
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 [...]
8K – The Valuation See-Saw
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 [...]
8K – The Switzerland Structure
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. [...]
8K – Growth Potential
We’ve hit week two on the 8 Key Drivers of Business Value! It’s easy to think about what you have achieved in your business over its lifetime. Whether it’s awards, or an outstanding reputation or how many years you’ve been operating. None of this really helps in terms of the potential for growth your business has. A few things you should be thinking about: Can you cross-sell or upsell any of your products? Ensuring good client-facing systems are in place can automate much of this process and make a big difference to your business. Are there any complimentary products you [...]
8K – Financial Performance
Today is the first day of our series on the 8 Key Drivers of Business Value Whether you’re growing your business for yourself, for the next generation, or to sell it, you need to ensure you have these drivers up to scratch. One weak area can seriously reduce your chances of hitting your goals for your business and your life. Our first stop is straightforward – Financial Performance. Here are a couple of things to think about to help you get it right: Are you getting the best possible prices from your key suppliers? Do you have any negotiating room? [...]