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If you want to be a business owner scaling up in 2022 you need to consider a different way of selling your product or service. The pandemic has changed the sales cycle. There is a danger that people are still using yesterday’s sales methodology and thinking in a world that is now vastly different. Selling was getting tough prior to covid due to a somewhat unstable economy. Now making sales is even harder. However, any business can turn bad sales around. On my Transition Guy podcast, I interviewed Jeremy Miner, chairman and former CEO and founder of Seventh Level. Buyers only stall when they are uncertain that what you are selling is going to get them the results they want. So what can we do to ensure our customers buy our products?

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Gaming company CEO Jason Kingsley’s tips on building a business.

The gaming industry in the UK is worth £7.16bn and that figure continues to increase. UK gamers spent more in 2021 than they did during the height of lockdown, according to trade body UKIE. On my Transition Guy podcast I spoke to co – founder and CEO of the Rebellion Group, Jason Kingsley. When Jason and his brother set up Rebellion, gaming was a new industry. Jason was the creative arm and designed the games while his brother was the technical mastermind. Between the two of them they started designing and producing video games and Atari was their first client. He shares some of his tips to creating a successful business.  

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Will virtual events be obsolete after the lockdown? The pandemic has caused us all to become more inclined toward In-person meetings instead of online ones. Will there still exist a place for such things post COVID or are it just another tool that can easily get replaced by other technologies when needed most?

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I recently had Donato Tramuto on my podcast ‘Compassionate Leadership with Peter Boolkah – The Transition Guy.’ and he said something that really stuck with me – the compassion leadership gap is growing. It seems like we’re slipping back into a less compassionate way of leading in this era where employees are often treated badly by their managers who care more about results than they do people–and it’s important to close these gaps so you can lead from your heart instead!

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Profit per X and why implementing it early on in your business strategy is key to success.

From the very beginning of the conception of a business idea implementing a Profit per X early on can be key to your business success. How and why is what I discuss with Shannon Byrne Susko, the Founder & CEO of Metronome United, on my YouTube channel The Transition Guy. Susko is a big advocate of the Profit per X strategy formed by the American author, researcher and business consultant Jim Collins. He describes Profit per X in his ‘Good to Great’ book. He believes that a successful strategy is formed from overlapping these three questions.

1) What you are deeply passionate about (your ‘Why’) 

2) what you can be best at in the world 

3) what best drives your economic engine. 

Profit per X doesn’t deal in numbers. The Profit per X of your business is your economic engine, your core business. You can use the Profit per X to measure your 10-30 year goal (BHAG). Shannon goes one step further, she says 3HAG is necessary when planning your BHAG. 3HAG is predicting your future growth in 3 years prior to the execution of your BHAG. It is a strategic execution system that drives confidence in predicting the future growth of your company and then makes it happen.

Why is Profit per X Powerful?

Profit per x is a powerful way to measure profitability. By focusing on a specific metric, you can more accurately track and improve your bottom line. Additionally, Profit per x can help you identify areas of your business that may be more or less profitable than others. This information can be used to make informed decisions about where to allocate resources in order to maximize profitability.

When used correctly, Profit per x is an extremely powerful tool that can have a significant impact on your business. If you’re not currently using this metric, we strongly encourage you to start doing so. You may be surprised at just how helpful it can be!

  • Enables the right decisions

Profit per x is a key metric for making decisions in business. It enables you to see how much profit you are making per unit of whatever you are selling. This is important because it allows you to make comparisons and see which products or services are more profitable. Profit per x can also help you to set prices and make other strategic decisions. Therefore, if you want to make the right decisions in business, profit per x is a metric you need to pay attention to.

  • Changes your focus

Profit per x is a metric that can help businesses focus on what’s important. By tracking how much profit is generated for each unit of a product or service, businesses can identify areas where they are most efficient and make changes to improve their bottom line. While there are many factors that go into profitability, focusing on Profit per x can help simplify the decision-making process and ensure that resources are being used in the most effective way possible.

Profit per x can be a valuable tool for any business that wants to optimize its operations and grow its bottom line. By understanding where Profit per x is most effective, businesses can focus their efforts on areas that will have the biggest impact.

  • Differentiates you from your competition

By understanding your Profit per x, you can make strategic decisions to grow your business and improve your bottom line.

To calculate your Profit per x, simply divide your total profits by your total number of customers, products, or services. This will give you a clear picture of how much profit you’re making on each sale.

For example, let’s say you have a business that sells products. If you want to know your Profit per product, simply divide your total profits by the number of products you’ve sold. This will tell you how much profit you’re making on each product.

If you want to know your Profit per customer, divide your total profits by the number of customers you have. This will tell you how much profit you’re making on each sale.

Profit per x is a key metric that can help you understand your business and make strategic decisions to improve your bottom line. By understanding your Profit per x, you can make informed decisions about how to grow your business and improve your bottom line. Often companies may wish to double down on a particular product line or service or in some circumstances where they cannot compete with competitors, they may choose to exit a market and focus elsewhere.

  • Leads to different priorities

Profit per x can lead to different priorities. For example, if a company is focused on profit per customer, they may be more likely to prioritize new customers over existing ones. On the other hand, if a company is focused on profit per employee, they may prioritize training and retention over hiring new staff. Ultimately, whatever a company’s priorities are, they will be reflected in their profit per x.

  • Drives growth

Profit per x is a key metric for growth. By focusing on increasing profit per x, businesses can drive growth and scale their operations. Profit per x can be increased by improving efficiency, increasing prices, or finding new customers.

Improving efficiency is the most straightforward way to increase profit per x. This can be done by streamlining processes, reducing waste, and improving productivity. Increasing prices is another way to boost profit per x. This can be done by raising rates, implementing surcharges, or introducing new pricing tiers. Finally, businesses can also increase profit per x by finding new customers. This can be done through marketing and sales initiatives, or by expanding into new markets.

By focusing on profit per x, businesses can drive growth and scale their operations. Profit per x can be increased through efficiency improvements, price increases, or by finding new customers. By increasing profit per x, businesses can fuel growth and scale their operations.

  • Brings clarity

There’s a lot of talk in business circles these days about the importance of clarity. And for good reason – when everyone in an organization is clear on the company’s goals, it can be a powerful driver of growth and success.

But what exactly is clarity, and how do you achieve it? One way to think about it is profit per x, or P/X.

P/X is a measure of profitability that takes into account all the different elements of a business’s operations. It’s a way of looking at the big picture and understanding where the company is making money and where it isn’t.

The Profit per X approach can be applied to any area of a business, from sales to marketing to product development. And it can be a valuable tool for teams to use to focus their efforts and align their activities with the company’s overall goals.

When everyone in an organization understands and buys into the Profit per X concept, it can be a powerful engine for growth and success.

So what are you waiting for? Get your team together and start thinking about how Profit per X can help you achieve clarity and drive your business forward.

  • Changes your industry

Profit per x is a key metric that can help you understand how your business is performing. This metric tells you how much profit your business is making for every unit of a particular product or service that you sell. Profit per x can help you understand which products or services are most profitable for your business and which ones are costing you money. By understanding this metric, you can make changes to your pricing or product mix that can improve your bottom line. Profit per x can also help you compare your performance to other businesses in your industry and see where you need to make improvements.

Back to Profit per X – how do we work it out?

Firstly you need to ascertain what the purpose of your business is. The BHAG and Profit per X are intrinsically linked. The 10 to 30 year goal you need to set comes out of the intersection of Jim Collins’ hedgehog concept. Ask yourself these questions to find your Profit per X first, prior to planning your 3HAG and then your BHAG. What is your core business and what is your understanding of what you can be best at in the world? Can you make money doing it – the economic engine? That will give you a clear Profit per X. This allows you to move forward to your 3HAG.  

Profit per X Examples

Profit per x is a term used to describe the amount of profit generated for each unit of a good or service produced. It is a key metric for businesses, as it can help to indicate how efficient a company is at generating profits.

There are several ways to calculate profit per x, but the most common method is to divide the total Profit by the number of units produced. This will give you the average Profit generated for each unit.

If you want to know the Profit per x for a specific product, you can simply divide the Profit generated from selling that product by the number of units sold.

Here are some examples of Profit per x in action:

  • A manufacturing company might use Profit per x to compare the Profit generated from different products. By looking at Profit per x, they can see which products are more profitable and make decisions accordingly.
  • A retail company might use Profit per x to understand which items are selling at a higher margin. This information can then be used to make pricing decisions or stock more of certain items.
  • A service company might use Profit per x to track the profitability of different services offered. This information can be used to make decisions about which services to offer or how to price them.

Profit per x is a valuable metric for businesses of all types. By understanding Profit per x, businesses can make informed decisions about where to focus their efforts in order to maximize profits.

Good to Great Profit per X Examples

Profit per x is a metric that measures the profitability of a company. It is often used to compare the profitability of different companies or to compare the profitability of different products within the same company.

The concept of profit per x was popularized by Jim Collins in his book Good to Great. In his book, Collins argues that companies need to focus on creating value for their customers, rather than simply maximizing profits. Profit per x is one way to measure this value.

There are many different ways to calculate profit per x. The most common method is to divide the total revenue by the number of customers. However, other methods may be more appropriate depending on the business and the products involved.

Below are some examples of how profit per x has been used:

  • A software company may calculate profit per x by dividing its total revenue by the number of software licenses sold.
  • A manufacturing company may calculate profit per x by dividing its total revenue by the number of products sold.
  • A retail company may calculate profit per x by dividing its total revenue by the number of customers served.

Profit per x can be a useful metric for companies to track, as it can help them to focus on creating value for their customers. Additionally, it can be helpful for comparing the profitability of different companies or products.

Planning your 3HAG

If you’re serious about achieving big things, you need a 3HAG.

A 3HAG (3-Year Highly Achievable Goal) is a powerful tool developed by Shannon Susko of Metronome Systems. It’s designed to help you focus on and achieve a specific, measurable goal within a 3-year timeframe.

Here’s how it works:

1. You start by identifying your 3-year goal. This can be anything from launching a new product to increasing sales by 20%.

2. Once you have your goal, you break it down into 3 key milestones that you need to achieve in order to reach your goal. These milestones should be achievable within 1 year.

3. For each milestone, you create 3 action items that you need to complete in order to achieve the milestone.

By following this framework, you can ensure that you’re making consistent progress towards your 3-year goal. And because each milestone and action item is within a manageable timeframe, you’re less likely to get overwhelmed or discouraged.

Planning your BHAG

Jim Collins, author of the bestselling business book Good to Great, famously popularized the concept of the BHAG. A BHAG, or Big Hairy Audacious Goal, is a long-term objective that is both challenging and inspiring. It gives your company something to strive for, and can help you focus your efforts and resources.

However, simply having a BHAG is not enough. You also need to have a plan for achieving it. Here are some tips for planning your BHAG:

1. Make sure your BHAG is specific and measurable. The more specific and measurable it is, the easier it will be to develop a plan to achieve it.
2. Involve as many people as possible in the planning process. The more buy-in you have from your team, the more likely you are to achieve your BHAG.
3. Develop a timeline for your BHAG. This will help you track your progress and make adjustments to your plan as needed.
4. Set milestones along the way. Milestones can help keep you motivated and on track towards your BHAG.
5. Be flexible. Your BHAG may change over time, and that’s okay! Be open to revisiting your plan and making changes as needed.

When it comes to achieving big things, planning is key. By following these tips, you can set yourself up for success in reaching your BHAG.

Next step is the key function flow map.

Prior to moving onto the BHAG sit down with your team and plan the key function flow map. What are the functional roles that exist in your business today? An example of a functional role is: head of company, sales, marketing, manufacturing, development, finance. What are the three to five key functions in your business that actually make the company money? What functions generate your economic engine. This is the foundation of everything in your business. And then we ascertain what non-fiscal things flow through your business. What do the individuals in your team control? Then we can see what things we need to make better, faster decisions about, to scale up the business and find our BHAG.

By setting out your plans this way, finding your Profit per X, your 3HAG, your key function flow map and then finally your BHAG, you create confidence within your team. They can see the flow and aims of the business clearly mapped out for them. They can get excited about the growth of the business. It becomes collaborative and creates a sense of ownership within the team.

It’s important to check back in on your Profit per X regularly. I advise clients to do it every 90 days. A check in, not a reworking of it. The hard work has been done at the beginning. For some high growth businesses a quarter can feel like a year so it is important to check in on your original Profit per X to ensure it’s still working for you. Businesses constantly evolve and it’s important to go with that and not remain static.

If you want to speak to me about Profit per X, head over to the contact me page.

FAQs

What is Profit per X?

Profit per X is a term coined by Jim Collins in his book Good to Great. It refers to the idea that a company can increase its profit margin by focusing on a specific metric, such as customer satisfaction or employee productivity.

Collins argues that companies should not simply strive to increase their profits, but should focus on improving their profit margins through initiatives that improve specific metrics. He cites examples of companies that have successfully increased their profit margins by focusing on metrics such as customer satisfaction or employee productivity.

While some may view Profit per X as a simple cost-cutting measure, Collins argues that it is much more than that. He believes that it is a way for companies to focus on what really matters and to create sustainable long-term growth.

In today’s business world, it is more important than ever to focus on profit margins. With the advent of the internet and the globalization of businesses, companies are facing increasing competition from all over the world. In order to stay competitive, they need to find ways to improve their profit margins. Jim Collins’ Profit per X provides a framework for doing just that.

If your company is looking for ways to improve its profit margin, Jim Collins’ Profit per X is a good place to start. It provides a framework for thinking about how to increase profits by focusing on specific metrics. And it offers concrete examples of companies that have successfully increased their profit margins by following this approach.

What is the Hedgehog Concept?

The Hedgehog Concept is a business strategy developed by Jim Collins. It is based on the idea that businesses should focus on their core competencies and align their activities around a single, unifying goal. The concept has been popularized in Collins’ bestselling book Good to Great.

The Hedgehog Concept is based on the ancient Greek parable of the hedgehog and the fox. In the story, a fox attempts to eat a hedgehog but is unsuccessful because the hedgehog curls up into a ball, protecting itself with its spines. The moral of the story is that it is better to be small and well-defended than to be large and vulnerable.

In business terms, the Hedgehog Concept suggests that businesses should focus on their core competencies and align their activities around a single, unifying goal. This allows them to be small and nimble, while still being well-defended against competitors. The concept has been popularized in Collins’ bestselling book Good to Great.

The Hedgehog Concept is a useful framework for businesses that are looking to improve their performance. It can help them to focus on their strengths and align their activities around a single, unifying goal. By doing so, they can become small and nimble, while still being well-defended against competitors.

What Drives Your Economic Engine Examples?

1. Jim Collins

Jim Collins is a business journalist and author who wrote the best-selling book Good to Great. In it, he talks about the concept of the economic engine – what drives a company’s growth and profitability.

2. What is an Economic Engine?

An economic engine is the underlying force that drives a company’s growth and profitability. It can be things like innovative products, efficient production processes, or a loyal customer base.

3. Examples of Economic Engines

Some examples of economic engines include:

  • Innovative products or services: A company that constantly introduces new and improved products or services is more likely to grow than one that doesn’t. Think about companies like Apple or Tesla.
  • Efficient production processes: A company that has streamlined and efficient production processes is more likely to be profitable than one that doesn’t. Think about companies like Toyota or Samsung.
  • A loyal customer base: A company with a large and loyal customer base is more likely to grow than one without. Think about companies like Nike or Coca-Cola.

4. The Bottom Line

The economic engine is the underlying force that drives a company’s growth and profitability. It’s important to identify what your company’s economic engine is and make sure it is running smoothly if you want to be successful.

What Does an Economic Engine Mean?

Jim Collins, a world-renowned business consultant, popularized the term “economic engine” in his 2001 book Good to Great. He used it to describe the combination of processes and people that create value within an organization.

An economic engine is the heart of any organization – it’s what drives growth and profitability. To be successful, organizations must have a well-oiled machine that runs smoothly and efficiently.

The most important component of an economic engine is its people. Without talented and dedicated employees, an organization will not be able to compete in today’s global economy. The best organizations attract and retain the best talent by investing in their people.

In order to achieve long-term success, organizations must have a clear vision and purpose. Jim Collins believes that the most successful organizations are those that are “built to last.” They have a clear sense of who they are and what they stand for. This allows them to weather the storms of economic downturns and other challenges.

The best organizations are also those that are able to adapt to change. They continuously innovated and find new ways to grow and succeed. Jim Collins calls this the ” Flywheel Effect .” This is when small changes cumulatively lead to big results over time.

To sum it up, an economic engine is the combination of processes and people that create value within an organization. It is the heart of any organization and what drives growth and profitability. To be successful, organizations must have a well-oiled machine that runs smoothly and efficiently. Jim Collins believes that the most successful organizations are those that are “built to last.” They have a clear sense of who they are and what they stand for. This allows them to weather the storms of economic downturns and other challenges. The best organizations are also those that are able to adapt to change.

And remember, failing to learn is learning to fail.

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WHAT IS THE CRITICAL NUMBER DRIVING YOUR BUSINESS?

In business, the most successful leaders plan ahead. No matter what your industry or company size; as a business owner it’s important to set small and large-scale goals and align these with what’s known as ‘The Critical Number’.

Whether you’ve only recently discovered the term or you’re currently in the process of re-evaluating your critical number; identifying these numbers is critical for any type of business to thrive. Ultimately, your critical number is a key component of your decision-making dashboard. This dashboard predicts what direction your company will take 6 months to a year down the line.

Putting The Critical Number into Practice

Each business quarter should focus on 1-2 critical numbers. Whether it’s a sales percentage or a performance measure, analyse then choose accurate figures that will:

1. Encourage each department to work together towards one common goal. 

2. Benefit the health of your entire organisation as a result.

Although most SMEs do have a critical number, typically it’s the sales pipeline that takes precedence. And while a solid sales strategy is fundamental to your business, you must be able to identify where this leaves the rest of your employees. Operations, logistics, customer service… each department plays an active part when it comes to defining the critical number.

Trust the Right Execution and Improve Your Sales 

It might be that you’ve recruited the best sales team to make sure your daily targets are met. But here’s the dilemma: these sales are not being manifested as actual profit. That’s why the execution of sales is equally (if not more) crucial to get right. Once you perfect the execution, your business will start to see an increase in physical pounds.

A great example of this was with one of my clients. They have an engineering based company and approximately 40 mobile engineers. The sales team kept winning work but the sales were not going up in proportion to the amount of work done. Now the natural instinct would be well get more sales in but that was not the issue. 30% of these site visits were aborted, impacting the sales figures at the end of the quarter – and subsequent quarters.

Had we kept chasing sales we would have had to hire more engineers. Granted sales would have risen but still 30% of visits would have been aborted so we would have turning over more whilst injuring higher costs. So in this case, the critical number we addressed was the 30% in aborted visits. We had the aborted visits as a critical number for 3 quarters and took active steps to reduce this percentage over time.

In the end we got this down to below 4% which basically allowed us to increase sales by over 25% as well as profitability. All departments had a role to play as we had bottlenecks across the entire organisation and this whole process brought the team closer together.

How to Fix Your Critical Number

Before you can implement a critical number, it helps to figure out which areas your company has the biggest bottleneck or constraint . Team meetings work well for brainstorming. You can then communicate a common goal with each separate department. If it’s your sales team, perhaps focus on suggestions for how to improve sales bookings. Or if it’s your warehouse team, make sure all the necessary tools and parts are on-site ready to use for the next client visit. By adopting a highly organised approach, this will ensure your employees act more efficiently when completing each allocated task.

Whether you prefer to focus on one or more critical numbers before moving onto the next, once you highlight a solid goal your entire workforce can identify, your business will pose a much higher success rate.

Connect with Peter Boolkah – The Transition Guy

If you need some personalised coaching on how to identify and implement your critical number; and most important of all, how to bring this to life within your organisation, get in touch.

…and remember, failing to learn is learning to fail.

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THE 3 STAGES FOR SUCCESSFUL BUSINESS MANAGEMENT

An often overlooked aspect of a business is management. Most people tend to gravitate towards leadership. Although leadership skills are crucial for business growth, there’s no point in focusing on this without putting your management skills to the test first. Remember, your business is much like a well-oiled machine in that there are multiple cogs to make any operation smooth-running.

I was very fortunate in my formative years whilst working at McDonald’s. Jokes aside, back then McDonald’s had – and probably still has – the best management training system in the world. The training I learned along the way put me in good stead once I transitioned into the private industry.

Believe it or not, business management is one of the critical topics that gets misunderstood. And in the worst-case scenario, it’s missing altogether. So talking about management, we can easily break down the need-to-know fundamentals into three stages:

STAGE 1: Delegation

First and foremost, many leaders and business owners often misinterpret delegation in the workplace. Delegation is all about making sure you give your team players things to do. Many managers think delegation merely means telling others what tasks they need to complete, but this is not the case. With delegation comes the need to have someone capable of carrying out the job at hand. I can’t begin to tell you the number of times I’ve come across business owners who have said: “I told my team what to do.” Great, but this alone won’t get the job done.

It’s imperative to provide your employees with sufficient training. This will ensure they’ll be able to carry out what you’ve asked of them when it comes to delegating set tasks.

STAGE 2: Follow-Up

Once you’re confident with the delegation, it’s time to put stage 2 into practice, better known as the follow-up. You must ensure that the delegated task is completed. You can’t rely on the fact that you’ve asked (or told) somebody what to do and expect magical ‘overnight’ results based on assumption. To delegate successfully, the power is in the follow-up process. If you delegate without following up, this, in essence, is not what delegation involves. The focus then steers towards abdication, which is an approach that doesn’t work in management.

Recap: So first you delegate a task, then you follow-up and check in with your people to make sure their progress is on track. Keep reading to discover stage 3.

STAGE 3: Follow-Through

It’s easy to fall into the trap of assuming your management duties are finalised after the delegation and follow-up stages. People often miss the third and most crucial stage of management – the follow-through. You can delegate and trust someone to complete the task responsibly, but the onus still lies with you. So cover all of your bases and make sure the job pans out from start to finish. Remember, if it doesn’t happen, this is when you’re likely to see detrimental damage to how your business performs. By making sure the task gets done to the highest standard without any confusion or assumption, the result will always manifest from your solid action plan. And that’s why stage 3 is called the follow-through.

The follow-through is also considered to be the most formidable obstacle to overcome. Keep in mind that there are lots of reasons why the delegation aspect might not be happening immediately. There will be things you’ll have to fix along the way. But with these three stages for successful business management, you can have peace of mind knowing that your efforts will achieve the best possible results.

The 3 Stages for Successful Business Management in Summary: 

1) Delegate and have people to delegate tasks to. Make sure that person is sufficiently trained at the job to allow them to be a success.

2) Follow-Up and make sure everything stays on track.

3) Follow-Through. If you don’t follow through and targets aren’t met, the blame ultimately lands on you. Always follow-through and troubleshoot the missing ingredient so you can guide your team directly moving forward.

Connect with Peter Boolkah – The Transition Guy

Want to talk in greater detail about management related topics? Perhaps you’ve got a team that just isn’t managing your operation the right way. Maybe you need some advice on training, or maybe it’s direction that’s required so that your business can stay on track and perform as it should. Head over to Boolkah.com and get in touch. Let’s see how we can help your managers become more effective than they’ve ever been.

And remember, failing to learn is learning to fail.

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5 Ways to Achieve Exponential Growth

When businesses start out, most entrepreneurs have this phenomenal romance with the idea that their venture will grow to become huge. They dream about whether they’ll be the next Apple or the next Uber, when the sad reality is, very few businesses achieve that level of exponential growth.

Far too many entrepreneurs start their companies focussing around a single product or service, but to achieve exponential growth, business owners have got to think much bigger than that.

For the purpose of this article, I sat down with fellow business coach Monte Wyatt, who is writing a book on how businesses can achieve exponential growth.

“When researching exponential growth, there are so many things involved,” Monte explains. “It’s not about a product, it’s not about a person – it’s about the system that you build your business around.”

What is it that’s different about the companies which do achieve exponential growth?

“They have a clear strategy,” Monte states. “They know what success looks like and they know how they need to be structured for it.”

According to Monte, the very first question which every business needs to answer is:

– What is our business model?

“There’s got to be an opportunity in the market that they’re filling,” he explains. “There’s got to be leveragability in the service or product that they provide.”

What exactly does having leveragability mean for a company?

“It means that things can be duplicated,” Monte says, simply. “It means that you can get more done, with less effort. We operate in a world-wide market, so to truly have exponential growth, you have to be able to easily expand to other countries, markets and states. Without this ability, you’re not leveraged and will never achieve the growth you desire.”

This philosophy can be confusing for many business owners. Very often, the belief is that if you work harder, it will get you to where you need to be. In reality however, it’s often more about working smarter.

Why is it that most companies don’t leverage?

“Most entrepreneurs think of their new ventures as a job, when they should be thinking of them as a business,“ Monte states. “With a job, you’re getting done what’s right in front of you. When it’s a business, you have to step back and look at the whole world and think ‘where’s the opportunity? Where’s the market? How do we continue to grow every single day’?”

It’s an interesting point that Monte makes. So many companies don’t focus on these ‘big picture’ issues and instead, they spend all their time chewing on the small, day to day challenges. For example, a business owner may have a group of people surrounding them whom they’ve hired, however if they aren’t using their team efficiently and to their best potential, then the owner will end up still doing the same menial tasks that they did before they had employees.

As a coach, I find that what is missing from a lot of companies, is good leadership and management; these areas are often an entrepreneur’s biggest weakness.

“Every exponential growth business has both leadership and management,” Monte agrees. “Unfortunately, so many businesses out there are based solely around the owner or the leader, to the point where everything has to go through them. When everything needs to be fed through an individual, that person becomes a bottleneck. If you’re that bottleneck, you can’t make enough time to go after the things that need to be done to progress your business, because you have to have your hand in everything.”

“Part of being a leader is being able to give direction with expectations, and then allowing your team – empowering your team – to go forth and do that work,” Monte elaborates. “Successful business management is about inspecting what you expect; you can set up KPIs for every area so that you know that your team are doing the right things, without micromanaging every situation. Ultimately, you need leadership and management; if you don’t have both, you won’t be able to focus on what you need to achieve the exponential growth that you desire.”

Monte is right; to have good leadership and management requires discipline – which is something that most entrepreneurs lack. The very nature of the entrepreneur is that they love having the freedom to do a variety of things, but business needs routine. As business author and founder of the Entrepreneurs Organization, Verne Harnish says “routine sets you free.”

“It’s about identifying what our routines are in your business; routines should not be about a person,” Monte states, plainly. “Routines should be about the business. What routines for meetings are we going to choose to have as a as an organization? What routines are we going to have to review our progress and our numbers? It’s about the actions that create the results,” he explains. “If you create the routines around a person, they won’t be routines for very long. You’ve got to create routines about the business.”

Many business owners however, resist routine.

“I’ve got a client that I’ve been working with for three years,” Monte reflects. “One of the first things I suggested to them, was to start the business day with a ‘daily huddles’. That way, everybody would be on the same page, priorities would be identified, and the team would be inspired for the day,” he continues. “Well, they pushed back and pushed back, and it ebbed and flowed, it disappeared for a while, then it came back. Three years later, guess what? We’re right back doing them!”

Monte tells me that this resistance is often due to companies not understanding the importance of communication.

“The more businesses I work with, the more I’ve come to realise that communication is the toughest thing to focus on; it’s the most challenging thing that everybody misses, simply because they don’t understand how important it is.”

Monte hits the nail on the head here. One of the barriers that my clients put up when discussing incorporating routines and improving communication, is that they don’t have the time to, because they’re too busy.

“Good communication improves your time,” Monte states, matter of fact. “If you get the communication thing right, you don’t have people knocking on your door or pulling you aside in the hallway to ask for ‘just five minutes of your time.’ Once you get your communication on track, you can be more focussed, you can be more intentional.”

For anybody reading this article today, please understand that being the hamster in hamster wheel and running faster and faster, isn’t necessarily going to build this great business that you so desire.

Business author and wealth consultant Roger Hamilton says that, “sometimes to speed up, you’ve got to slow down.”

It really isn’t about how great you can be as entrepreneurs, but about how well you can build your teams. Few entrepreneurs really take the time out to make their people great, but it’s the ones that do, which tend to successfully grow their businesses.

“I was staying in a hotel recently and I watched the TV show Shark Tank,” Monte recalls. “The people who were selling to the sharks, they thought that they were selling a business, but they weren’t; they were just selling a product. None of them had businesses. They didn’t have a structure, they didn’t have leverage, they didn’t have predictability or scalability for that business. That’s what they go to the sharks for; to get those things.”

In summary for the entrepreneurs out there, here are Montes top five things that you need to do in order to achieve exponential growth:

1) You’ve got to have leadership and management. Leadership is caring for your people, empowering them to do their job and management is making sure they’re doing things right.

2) You’ve got to have a purpose that is bigger than profits. You’ve got to think ‘what is the impact that we’re making on the world?’

3) You’ve got to have continuous business development. You’ve got to have a system around how you’re marketing, how you’re selling and how you’re servicing the customer.

4) You’ve got to make sure that you’re developing your people and that team development has to occur every single day. No one, including us, have ever ‘fully arrived’; nobody knows everything and if you ever think you do, you’re already starting to die.

5) You’ve got to make it fun! I really believe that if you have fun in your business, people will want to work with you. If you’re the tyrant, nobody is going to want to stay working with you for very long. You’ve got to make it a fun environment. It’s all about the culture you create. You can guide, define and live your culture, but you have to choose a culture that’s best for the retention of people, for excitement about the future and for the organization you’re wanting to build.

The most successful businesses out there already have these things in place, but it’s not something that happens overnight; it’s a journey. The question you’ve now got to ask yourself is this: What are you doing to take that first step, on your business’s journey towards exponential growth?

If any of this has resonated with you, fell free to contact me.

Frequently Asked Question

How do you grow exponentially?

You must have a product or service that is scalable. There cannot be contraints in the manufacuring, supply chain or labour markets. If we look at the high growth businesses post pandemic, those who have solved the issues many businesses face right are the ones scaling with success.

When can exponential growth happen?

Such growth can only happen once many things are aligned. First and foremost the product or service must be scalable. Once this has been achieved then the business needs to have strong systems and processes in place. Without this in place exponential growth with be difficult often damaging a company’s brand and reputation.

How do you achieve growth?

First have a strong strategy for your business in place. The 7 Strata by Verne Harnish is a great tool to use when creating a robust strategy that yields predictable, consistent revenue growth.

What are some real life examples of exponential growth?

Companies in the digital space are the ones who have massively benefitted from exponential growth both during and post pandemic.
Only Fans grew by 9700% over the past 5 years. The majority of the growth happening during lockdown.
Other examples are Zoom, Stackblitz, Linktree just to name a few.

How can I get 10x growth?

Relevancy plays a big part here. StackBlitz were only founded in 2018 and have over 99X their business in 4 years. Being in the digital space has helped as businesses refine the business model transitioning to online.

 

Remember, failing to learn, is learning to fail.

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How a Daily Huddles Improves Team Performance

The Productivity-Power of the Daily Huddle

Effective communication is so important in a business. All too often we talk ‘at’ each other and consider that to be communication. To a degree, I guess it is, but it’s perhaps not as purposeful as it should and could be.

What is a Daily Huddle?

A Daily Huddle is part of the ‘meeting rhythm’ mentioned in the book “Scaling Up” by Verne Harnish and it’s all about communication and quick synchronisation. It’s about getting everybody on that same page and ensuring that members of your team let each other know what they’re up to.

The huddle is also about healing relationships. Have you ever been part of a team where the relationships within are quite fractious? A team that has fragmented into smaller groups and as a result, tiny issues don’t get dealt with until they escalate into bigger problems.

Those niggly little problems can be the biggest killer of teams and the huddle is a great daily opportunity to deal with them as they arise.

The huddle must always be conducted standing up, to ensure that people don’t get too comfortable (which can prolong the meeting) and are able to get straight back to work afterwards.

What is discussed at a Daily Huddle?

The Daily Huddle should only take 5 to 15 minutes out of your day, depending on the size of the team. Smaller companies may have the whole team around the huddle but as a company grows, they tend to be run departmentally and sometimes inter-departmentally if there is a crossover between team roles.

‘What’s Up?’

The first thing you need to focus on in the huddle is everybody’s ‘what’s up’ or ‘what is everybody working on’?

When people in a company don’t communicate properly there is a danger that work will be duplicated; this is inefficient and can be embarrassing if it involves your customers.

At the end of the working day, it’s great practise to write down your ‘what’s up’ for the following day. Everybody should know at that stage what their priorities are going to be, and this practice ensures that you are ready to go the following morning.

A Metric Update

The second thing that you need to do at the Daily Huddle is to have a metric update. This is where you will discuss where you are against your short-term priorities and KPI’s.

As well as being an acronym for key performance indicator, KPI’s are also about keeping people informed. They can tell you if you’re on target and if you’re going to make it. If you’re not, they let you know in good time, so that you can change course or do things differently to get back on track before it’s too late.

Solving the Stuck

The third thing that Daily Huddle’s areinvaluable for, is knowing when your team members are stuck with a task. When you bring out the ‘stucks’ in a huddle, you often find that another team member has got a solution to the problem or if they haven’t, they know somebody else that has. It’s all about getting the stuff out there that’s going to hold you back, dealing with it and moving forward.

It’s that simple!

A quick-fire, 5 – 15-minute meeting which will keep your team on track to achieving their targets.

If you want more information around huddles or how to run them more efficiently, fell free to contact me.

Remember, failing to learn is learning to fail.

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3 Stages For Successful Management

In business most people tend to gravitate towards leadership, and management is often overlooked as an important topic. Although leadership skills are crucial for business growth, there’s no point in focusing on this without putting your management skills to the test first. Remember, your business is much like a well-oiled machine in that there are multiple cogs to make any operation smooth-running.

I was very fortunate in my formative years whilst working at McDonalds. Jokes aside, back then McDonalds had – and probably still has – the best management training system in the world. The training I learned along the way really put me in good stead once I transitioned into the private industry.

Believe it or not business management is one of the key topics that gets misunderstood. And in the worse case scenario, it’s missing altogether. So talking about management, we can easily break down the need-to-know fundamentals into 3 stages:

STAGE 1: Delegation

First and foremost, delegation is often misinterpreted in the workplace. Delegation is all about making sure you give your team players the right things to focus on. Many managers think delegation means simply telling others what tasks they need to complete, but this is not the case. With delegation comes the need to have someone who is actually capable of carrying out the task at hand. I can’t begin to tell you the amount of times I’ve come across business owners who have said “I told my team what to do.” Great, but this alone won’t get the job done.

It’s imperative to make sure your employees are sufficiently trained, so they’ll be able to carry out what you’ve actually asked of them when it comes to delegating set tasks.

STAGE 2: Follow-Up

Once you’re confident with delegation it’s time to put stage 2 into practice, better known as the follow-up. You must ensure the delegated task is being done. You can’t rely on the fact that you’ve asked (or told) somebody what to do, and expect magical ‘overnight’ results based on assumption. In order to delegate successfully, the power is in the follow-up process. If you delegate without following up, this in essence is not what delegation involves.

The focus then steers towards abdication, which is an approach that doesn’t work in management. In fact abdication can often create a culture of mistrust, blame and poor performance.

Recap: So first you delegate a task, then you follow-up and check in with your people to make sure their progress is on track. Keep reading to discover stage 3.

STAGE 3: Follow-Through

It’s easy to fall into the trap of assuming your management duties are finalised after the delegation and follow-up stages. People often miss the third and most important stage of management – the follow-through. At the end of the day, you can delegate and trust someone to complete the task responsibly, but the ownership still lies with you. So cover all of your bases and make sure the task actually pans out from start to finish. Remember, if it doesn’t happen this is when you’re likely to see detrimental damage to how your business performs. By making sure the task gets done to the highest standard without any confusion or assumption, the end result will always manifest from your solid action plan. And that’s why stage 3 is called the follow-through.

The follow-through is also considered to be the hardest obstacle to overcome. Keep in mind that there’s lots of reasons why the delegation aspect might not be happening immediately, and there will be things you’ll have to fix along the way. But with these 3 stages for successful business management, you can have peace of mind knowing that your efforts will achieve the best possible results.

The 3 Stages for Successful Business Management in Summary:

1) Delegate and have the right people to delegate tasks to. Make sure that person is sufficiently trained at the job to begin with.

2) Follow-Up and make sure everything stays on track.

3) Follow-Through. If you don’t follow through and targets aren’t met, the blame ultimately lands on you. Always follow-through and troubleshoot the missing ingredient so you can guide your team directly moving forward.

Connect with Peter Boolkah – The Transition Guy

Want to talk in greater detail about management related topics? Perhaps you’ve got a team that just isn’t managing your operation the right way, you need some advice on training, or maybe it’s direction that’s required so that your business can stay on track and perform efficiently as it should. Head over to Boolkah.com and get in touch. Let’s see how we can help your managers become more effective.

FAQs

What is Successful Business Management?

There is no one formula for success when it comes to business management. However, there are some key principles that all successful businesses follow. By understanding and implementing these principles, you can give your business the best chance of success.

The first principle of successful business management is effective planning. You need to have a clear vision for your business and set realistic goals. Once you have a plan in place, you need to make sure you stick to it. This means being disciplined and organized in your day-to-day operations.

Another important principle of successful business management is effective communication. You need to be able to communicate your vision and goals to your team clearly. Furthermore, you need to create an environment where open and honest communication is encouraged. This will help to ensure that everyone is on the same page and working towards the same objectives.

Finally, successful business management also requires a focus on continuous improvement. You should always be looking for ways to improve your processes and procedures. By constantly striving to be better, you will ensure that your business remains competitive and successful.

By following these principles, you can set your business up for success. However, it is important to remember that there is no one perfect way to manage a business. The most important thing is to find what works for you and your team. By constantly adapting and evolving, you can ensure that your business is always moving in the right direction.

Is Business Management a Good Major?

Is management a good business major? It depends on what you hope to gain from your degree. If you want to learn how to run a business and become a CEO, then management is an excellent choice. However, if you’re looking for a more general business education, there are other majors that may be better suited for you. Ultimately, it’s important to choose a major that aligns with your goals and interests.

There are many different management styles and techniques that you’ll learn as a management major. You’ll also gain an understanding of business finance, accounting, marketing, and human resources. These skills are essential for any business leader. With a management degree, you’ll be prepared to take on a variety of roles within a company.

The downside of management is that it can be quite competitive. The job market for management positions is often saturated with candidates. To stand out, you’ll need to have excellent grades, relevant work experience, and a strong network of contacts. But if you’re willing to put in the work, a management degree can open doors to many exciting career opportunities.

So, is management a good business major? It depends on what you want to get out of your degree. If you’re looking for a challenge and are interested in learning how to run a business, then management is an excellent choice. However, if you’re looking for a more general business education, there may be other majors that better suit your needs. Whichever path you choose, be sure to do your research and select a major that aligns with your goals and interests.

Why is Business Management Important?

Management is important for businesses because it helps to ensure that all company operations are running smoothly and efficiently. Good management also helps to create a positive work environment where employees can thrive and be productive. Additionally, effective management practices can help to improve customer satisfaction and retention rates. Ultimately, business management is critical for ensuring that a company is able to achieve its long-term goals and objectives.

While there are many different aspects to business management, some of the most important management functions include planning, organizing, staffing, directing, and controlling. Each of these management activities plays a vital role in the overall success of a business. For example, if a company does not have a clear plan in place, it will likely struggle to achieve its goals. Likewise, if a business is not organized effectively, it may have difficulty completing tasks and meeting deadlines. Finally, businesses must staff their operations with qualified individuals and then provide those employees with the necessary direction and guidance. By properly managing all aspects of their business, companies can increase their chances of achieving success.

What is Considered Successful in Business?

There is no one answer to the question of what business success looks like. Every organization has different goals and metrics for success, and what works for one company may not work for another. However, there are some general principles that can help any business achieve success.

First and foremost, businesses need to have a clear understanding of their goals and objectives. Without this direction, it can be very easy to get sidetracked or pursue activities that don’t align with the company’s mission. Once the overall goal is established, it’s important to develop actionable plans and strategies for achieving it. This might involve setting sales targets, creating marketing campaigns, or developing new product lines.

Secondly, businesses need to focus on delivering value to their customers. This means creating products or services that meet customer needs and exceed their expectations. It’s also important to provide excellent customer service and build strong relationships with clients and customers. When your business is known for delivering high-quality goods and services, you’re more likely to succeed in the long run.

Finally, businesses need to continuously adapt and evolve. The business world is constantly changing, and companies that can’t keep up are quickly left behind. To stay ahead of the curve, businesses need to be willing to experiment with new ideas, embrace new technologies, and adapt their strategies as the market changes.

While there is no one formula for business success, these principles can help any organization achieve its goals. By clarity of purpose, delivering value, and remaining adaptable, businesses can set themselves up for long-term success.

…and remember, failing to learn is learning to fail.

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