Many small and medium sized enterprises [SME] owners already know what needs to be done to grow their business but lack the time and/or resources to bring about the necessary changes.
Others may simply be reluctant or restrained by tradition to make a shift.
Change is difficult.
This series attempts to help answer the question, "How will owners [like me] make the necessary changes to aggressively grow their business in 2014 — and beyond?”
7.pdf This presentation captures many uses and the significance of the number...
LIFT Business Growth Report 2014: Part 2
1. LIFT | LLC .Michael Linder . 616.460.3395 . michael.linder@lift156.com
156 REPORT
Best practices based on work done with over 200 SME’s and 33 Fortune 500 companies
2014 - 2019
SME Business Growth
Executive Summary and
Organization Assessment
Part 2
156Many small and medium sized
enterprises [SME] owners already
know what needs to be done to grow
their business but lack the time and/or
resources to bring about the necessary
changes.
Others may simply be reluctant or
restrained by tradition to make a shift.
Change is difficult.
This series attempts to help answer
the question, "How will owners [like
me] make the necessary changes to
aggressively grow their business in
2014 — and beyond?”
2. Part 2 Introduction: Small and Medium Sized Enterprise [SME] 2014 Report
In Part 1 of my business growth summary, I discussed how complex growing revenue
and managing the risk of growth has become. While the economy is back to [slow]
growth and the Dow has crossed 16,500, for many SME’s the intricacies of sustainable
business growth in these turbulent times can be exhausting.
SME’s continue to struggle with one or more of the following challenges:
§ A weak sales system or inability to hold sales channels accountable for poor results
§ The escalating costs and stress of trial and error
§ The anxiety accompanied with the majority of the organization’s revenue resting with
1-2 major customers and/or controlled by a single staff member
That said, there is evidence that many SME’s are bullish on 2014. In a recent 2014
study of 400 SME’s commissioned by Palo Alto Software, 91% of SME’s expect an
increase in revenue in 2014 and 30% said they expect to grow by 50% or more.
The Key to Business Growth?
In a word, “planning.” The Palo Alto study revealed that 79% of SME's with a strategic
plan say they are better off financially than a year ago.
Only 33% of SME’s without a strategic plan say they are better off.
75% of SME's that have a plan expect to grow 10% or more in 2014, compared to 17%
that don’t have a plan. Thus, if your company does not possess a well documented
strategic and operational plan, you are at a significant competitive disadvantage!
With strategic planning in mind, we will begin Part 2 of my report with a foundational
principle shared in the Part 1 report…
Is Your Company Perfectly Designed to Get the Results it is Getting?
2014
SME Business Growth Executive Summary
156
REPORT
Your organization is currently executing at a certain level
of performance. That level of execution is delivering a
certain result. Execution = Results.
60% of SME’s are executing at a moderate to “at risk”
level of performance and thus, are perfectly designed to
generate a moderate to “at risk” result for its
stakeholders.
In order to achieve a more desirable and strategically planned result, read on!
REPORT
Part 2
LIFT | LLC .Michael Linder . 616.460.3395 . michael.linder@lift156.com
E R
Desired
Results
Current
Results
=
Desired
Execution
Current
Execution
3. Where are Your Revenue and Growth Opportunity Leaks?
Whether you have planned for it or not, your company is perfectly designed to get the
results it is getting.
Can your results be improved?
Given most revenue leaks are a result of poor or no planning, do you have a well
documented plan to drive the improvements?
If not, this is your first revenue leak.
In order to identify and stop the many other revenue leaks your business may be
experiencing, develop a plan that considers the following:
Can you improve your company’s problem solving solution by:
§ Radically changing how your solution is delivered or who it is delivered through
§ Radically changing its fit, form or function [in part or in whole]
§ Radically improving the quality beyond market norms [in part or in whole]
§ Radically reducing the quality/cost beyond market norms [in part or in whole]
§ Radically applying the internet or online tools to enhance your solution
§ Radically applying the concept of strategic partnerships to enhance your solution
§ Radically applying an idea from an unrelated industry
Point being, adapting to solve a different problem or adapting to solve a problem in a
new or different way — while adding value — will abate revenue leaks.
Are your leaders “multiplication thinkers”?
Asking, “What do we need to do to grow our sales 5X [or some multiple of the
industry]?”, will direct your leadership team to a very different strategy or set of
tactics than if your team asks, “How can we grow sales 4-5%?”
Think in terms of multiples vs. percentages [or incremental gains] in order to
maximize your growth potential and mitigate opportunity leaks.
Similarly, ask your customers bigger questions — “If together we were to agree to
[manufacture] 100% of your work, what might that agreement look like?”
2014
SME Business Growth Executive Summary
156
REPORT
What market problem does your company exist to solve?
Are you focused on the right problem for the right market?
Is this problem a growing or diminishing concern in the
markets you serve?
REPORT
Part 2
LIFT | LLC .Michael Linder . 616.460.3395 . michael.linder@lift156.com
4. How Much Revenue is Your Sales and Marketing System Leaking?
Most SME's possess deep industry expertise and knowledge, but many lack the
capabilities or resources to truly drive demand for their products or services beyond
situational opportunities or a rising market — thus, the potential for leaking revenue and
market share is high.
§ A well defined sales funnel that outlines the 4-6 key stages of your customers’ buying
process — that is aligned with the 4-6 key stages of your selling process
§ Sales and marketing collateral that communicates your understanding of your
customers’ buying process, your customers’ challenges and your customers’ interests
— not just the features, benefits and wonderful images of your product[s]
§ Aligning the goals, strategies, commitment and resources of Sales and Marketing
§ A “sales ready” lead generation strategy — qualifying buyer budgets, authority, needs
and timelines isn't enough. "Sales ready" means the buyer’s problem or challenge[s],
the cost of the unresolved challenge[s] and the buyer’s intentions have been identified
§ Key performance indicators [KPI’s] that are actually indicators of a future result — i.e.,
sales calls per/day, discovery meetings per/week, presentations per/month
Who “Owns” Your Customer Relationships?
Your selling organization [yikes!]? You? Too often in SME’s, the generation that built the
business owns the key customer relationships.
Frankly, “the company” should own the customer relationships.
There must be a “corporate” marketing effort that communicates the company’s value
proposition and builds customer loyalty to the company. The customer’s allegiance must
be with the company in order for the company to be sustainable, hold its value through
an ownership change and prevent revenue leakage.
2014
SME Business Growth Executive Summary
156
REPORT
A “leak proof” sales and marketing system would
include:
§ Well defined target customer profiles — i.e., good,
better, best potential
§ An understanding of time and effort — i.e., how
many sales people, managing how many current
customers, selling how many new customers in
order to achieve the desired results
REPORT
Part 2
LIFT | LLC .Michael Linder . 616.460.3395 . michael.linder@lift156.com
5. 2014 - 2019 SME Business Growth Assessment
How Leak-Proof Is Your Business Growth Plan?
Read each statement and rate your response:
“5” = Execute at the highest level and have a plan to continue to do so.
“3” = Need work, but have a plan and path to excellence.
“1” = Need help.
Your
1, 3 or 5
Rating
Here
My organization can “feel” the momentum of our growth
strategy?
Each key stakeholder in Sales and Marketing is fully aligned,
committed and working together — on a high level — to execute
the company’s well documented strategic growth plan.
My company possesses a “leak proof” sales and
marketing system.
I am consistently impressed by the quality of thought and the
depth of the dialog — at our leadership level — relative to our
sales and marketing strategies.
We are exceeding our revenue growth goals and growing faster
than our competition and/or industry.
My company excels at asking ourselves “big / multiplication
thinking” questions that lead to innovation and breakout
performance.
My company is effectively solving the right problems for the right
target market.
Our company — not the owner, Sales or a key staff member —
“owns” our customer relationships.
Total Score
33 or more = Executing at a high level.
17 to 32 = Need work, but may have a plan and path to excellence.
16 or under = May need help.
_______
Total
Score
156
REPORT
Part 2
LIFT | LLC .Michael Linder . 616.460.3395 . michael.linder@lift156.com