Here's a simple truth; there is no magic when it comes to pulling profits out of your business; instead, there are five simple disciplines you need to follow, consistently.
My guest, Brad Sugars, is the author of Pulling Profits Out of A Hat. This book is his 17th, and he is also the founder of ActionCOACH, which operates in over 70 countries, has more than 1,000 coaches around the world, and coaches 15,000+ business every week.
"Get the right people you get the right business. Good people, great business".
Brad Sugars believes that if you can succeed in Australia, and you don't go global, you're insane. Australia is a tough market, but once you crack the market you have the choice; be a big fish in a small pond, or you can be a small fish in a much bigger pond and reap the rewards.
It's Not Magic
Pull profits out of business is not magic; there are five disciplines to follow consistently. They are called disciplines because they are not the sorts of things you do just once and walk away.
The Five Disciplines
- Business Development
The strategy is about the business model, where you look at the core of the business. There are four parts:
- Leverage - Do the work once and get paid forever
- Scalability - The next sale costs less and gets easier. You need to remove the human element of making the sale.
- Opportunity Size
"If you have not sat down and designed the strategy for your business, you've probably got the wrong strategy for growth on a massive scale".
Business Development is a combination of sales, marketing and customer service.
If you grow your people, they'll grow your business. No one has ever outperformed their training.
Execution is where the rubber hits the road; it's all about checklists. If you want consistent performance, and you want to scale your business, people need lists to follow.
"If you can't explain a process simply, you probably don't know it well enough to teach".
What is the value of the company over and above the profits? Do your customers and team love being part of the business?
People never leave a business; they leave the management of the business.
Exponential Growth & Adding A Zero
When all five disciplines are working together, you will get exponential growth, instead of percentage based profit growth.
So instead of trying to grow your business by 15% why not think about increasing it 15 times.
Once you get the fundamentals right, your goal should be to expand it to as many places as you can.
You Get Paid 3 Ways
Your business should be paying you three ways:
- Cashflow- you get paid wages or dividends from your profits.
- The business helps you invest a buys your assets.
- The business helps build a saleable asset.
Your goal when you set up a business should be for it to run without you.
3 Reasons Business Coaching Works
- The knowledge the coach has
- Accountability, the coach, brings to the table
- The coach can see the forest for the trees
How many new customers do you want per week? If you have too many, can you service them? If you have too few your not keeping your staff busy enough and this effects cash flow.
Knowing your acquisition costs per customer is essential. If it costs $30 to buy a customer with marketing and the customer spends $100, you can afford as many customers as your service team can handle.
Monday Morning Tip
Make a list on Friday afternoon of what needs to be done on Monday. Don't wait until Monday, and to make it simple, repeat this process every afternoon for the next day.
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