It’s mid-year. How are those 2018 business goals progressing? Most small businesses are finding that not only are their mid-year projections falling short of goals, but most CEO’s aren’t sure why. There’s a reason why only 2% of all businesses scale above $10M in annual revenue (and 98% do not). Companies that scale ask different questions about business performance.
Too often as entrepreneurs, we focus on brainstorming solutions rather than defining the root cause for stagnant growth. Yet it is in defining the core problem, rather than generating more solutions, that is the key to business performance and growth framing.
What Questions Should Be Asked?
The most important questions to ask in order to define the root cause(s) are:
- Are we missing 2018 targets because of top line growth, or profit, or both?
- If it’s top line growth, is it because we don’t have enough leads, not the right type of leads, or we aren’t turning leads into clients?
- If our shortfall is related to profit (rather than top line growth), are we missing profit goals because we are over promoting, (i.e. discounting our price), or are we spending too much on advertising? Or is it that we are not managing our costs of revenue/cost of goods sold? It could also be because we do not have a well differentiated solution that we can charge more for which is problematic short-term and long-term.
Experiencing business growth doesn’t have to be challenging. To evaluate where your business stands and discover how to experience consistent and profitable business growth, take our free assessment.
The truth is: there are very few effective small business training models that actually TEACH entrepreneurs how to determine the root cause of stagnant growth, so they can build, grow, and scale an entrepreneurial enterprise. Most of us learn as we go.
With almost 3 decades of experience in growing profitable companies, I’ve learned that there are two critical phases required to scale a company to $5M, and another three phases to go from $5M to $10M in annual revenue.
To scale a business in any industry to $5M in annual revenue, the two phases are:
- Differentiation: Differentiation isn’t about a “value proposition” or “elevator speech” – those are just buzz words that sound great but don’t move the needle. Instead, differentiation is about “being different in a way that MATTERS to your targeted buyer.”
Buyers are looking for a solution to a problem, and they have a set of criteria around which they consider possible alternatives. If you don’t understand their core problem, much less how they consider, then you can’t differentiate your business to them.
Differentiation ensures that not only does your top line grow, but your bottom line grows as well so that you’re able to scale more profitably.
- Demand: Demand is more than lead generation, although generating leads is one of the ways we measure demand. It is about demand generation, which is not done through advertising, but is created by implementing a systematic value creation process that builds relationships with your buyer and adds value in the process.
Demand generation is about the buyer – not about you. It’s offering them solutions and building a value-based relationship with them BEFORE they buy, and it’s easier to implement than most entrepreneurs think.
If your business isn’t where you want it to be, and it’s the middle point of the year, maybe it’s time to try something different.
IGNITE was built BY successful entrepreneurs FOR entrepreneurs and we specialize in specific strategies guaranteed to grow your business. We’re SO confident that we can grow your brand that we offer a unique Pay For Performance solution.
Ready to Grow? Let’s GO!
Contact us to see if we’d make a good partner to you, and ultimately, help you experience profitable, accelerated, and continuous business growth.