Developing a Business Growth Strategy may be easier than you think!
- The statistics are mostly grim
Turning a small business into a big one is generally considered not to be easy. According to Darren Dahl, a contributing editor at Inc. magazine, the statistics are grim. https://www.inc.com/guides/small-business-growth-strategies.html According to Mr. Dahl, research suggests that only one-tenth of 1 percent of companies will ever reach $250 million in annual sales. An even more microscopic group, just 0.036 percent, will reach $1 billion in annual sales. He concludes that in other words, most businesses start small and stay there.
- But that’s not the end of the story
Despite the unlikely result of a small business growing rapidly and becoming a big one, you and I both know that this happens regularly. Think of some of the biggest and most dominating big businesses in the field of technology today. Apple, Microsoft, Google, Facebook, LinkedIn, and many more, all started in the minds of one or a few individuals with non-existent sales and now are multi-billion-dollar companies.
- What are the most common business growth strategies?
According to Keith McFarland, an entrepreneur and former Inc. 500 CEO, in his book, The Breakthrough Company, the best business growth strategy for a start-up is to develop an approach that looks like climbing up a ladder where you focus on the growth strategies that are at the lowest rung of the ladder and then move your way up the ladder as each strategy is implemented. According to McFarland, the rings of the ladder go something like this, from the bottom to the top:
- Simply work on selling more of your current products to your current customers.
- The next rung up the ladder is to devise a way to sell more of your current products to an adjacent market.
- The next business growth strategy involves pursuing customers in a different way, such as, for example, selling your products online.
- A classic strategy is to develop new products to sell to your current customers as well as new ones.
- The final strategy is to develop new products to sell to new customers.
- Is there a method to the madness?
The strategies set out by Mr. McFarland are, on their face, valid and valuable. Unfortunately, the statistics still apply and only one-tenth of 1 percent of companies will ever reach $250 million in annual sales. The reason for that is that it is not the business growth strategy per se that produces the result. There is something far more basic that escapes the site of almost all so-called experts.
- The secret in the sauce:
Albert Einstein taught us that everything in the Universe is energy. Even a company is a source of energy. You can argue with that premise all you want but it is a fact. And, as a source of energy, a company vibrates at a particular frequency, just like everything else in the Universe. Sound vibrates at one frequency and light vibrates at a much higher frequency, by example. This is why light travels so much faster than sound.
- Enter the law of attraction
How a magnet works is that it vibrates at a particular frequency and attracts to it metals that vibrate at the same or similar frequencies and repels from it metals of dis-similar frequencies. This is now basic science, i.e. Quantum physics.
What we teach is that you really don’t have to go through a lot of fancy steps to develop a successful business growth strategy. All you really need to do is to create an energy that will attract sales, opportunities and growth and then you can sit back and watch it all unfold without much effort on your part, except responding to the opportunities as they present themselves.
- Let me present an example to demonstrate this business growth strategy
We received a call in 2005 from a wonderful company in the Midwest that was completely stuck. Sales had been between $40 and $50 million per year for 5 straight years, with very little profitability. In fact, during those 5 years, the most profitable year produced only $300,000 in profits and that was the best. Some years the company lost money or broke even.
We interviewed the 9 members of the management team and the findings were quite illuminating. The owner of the company was worried. His wife told me he often woke up in the middle of the night worrying about the company. He even told his senior execs how worried he was that the company might not survive if it didn’t start to grow and generate a profit. He surely had no business growth strategy.
The president of the company was frustrated. He had a team of managers and people in different divisions and he complained of the silo mentality. Each was focused on his own piece of the business and there was no cooperation or support for the others.
- The problem became obvious
As I explained to the owner and president, worry and frustration are very low frequency energies. Regardless, under the law of attraction, when the leadership is worried and frustrated, you attract to your company events and circumstances that give you more opportunities to worry and be frustrated. Can you see how not growing, no profits and people in silos are logical results of those energies?
Of course, the owner and president were alarmed to find out that they were the source of the problem. But after a bit of time to get over that fact, they were quite thrilled to realize that it was in their power to solve the problem and the door opened to our business growth strategy.
I will discuss in another article exactly what we did to turn the company around but for now, I will simply say that we applied our business growth strategy to create, throughout that company, a group of enthusiastic, confident, optimistic, appreciative and happy people who agreed to work together on behalf of a future they all committed themselves to!
The owner was no longer worried. In fact, he was thrilled and excited beyond words. The president was in a similar place as the walls of the silos came crashing down and everyone started to look for ways they could work with and support each other.
What was the result: the very first year after the implementation of our business growth strategy, sales shot up to $68 million, the next year it was $89 million and the third year it was $114 million, with a profit in excess of $5 million.
If you’re ready to take action and implement our business growth strategy, give us a call @ 949-542-6830.