Posts Taged business-success

The Big Game of Business

When I talk to business owners, we often get into the conversation of how much should a business owner expect to make?

 

My rule of thumb is simple… Take what you think you’re worth as an employee… And multiply it by 3…(3x)” That should be your minimum expected take home, after tax wage! For most people in business this blows their minds. They look at their current profit and realise this figure is an order of magnitude away!

So, lets look at why 3x? It’s simple. When you decided to become a business owner, you probably did it for one of 2 reasons. 

  1. You either wanted to make more money, work less hours, or just be your own boss. 
  2. Or you didn’t have a choice, you were retrenched, made redundant, or are just unemployable.

 

When it comes to setting a goal for your business, the main number you need to look at is Leftover, not Turnover. That is net profit. As an owner, this is the reason we run a business. The problem is that this number can be highly variable. What I mean is that when you have a quiet month, you will still pay the bills, the wages, even the tax man. But the first person to miss out is you.

So the reason we aim for 3x your wage is risk. And risk is something that very few people value and expect to be paid for. You see, in a job you get holidays, sick pay, superannuation, long service leave and other benefits, when you decide to run a business, you sacrifice all of that for the dream of freedom.

Now for the brutal truth…. It is nearly impossible to be self employed and maintain this type of income. The only real way to achieve 3x is to build a business that works without you. The first one will be hard, but once you’ve mastered the skill, it becomes so much easier.

One of the best kept business growth secrets is acquisition… yes, buying other businesses is the quickest way to grow yours. I call this the big game of business, and it cannot be played when you are stuck in the engine room. You see, building your business system and your team is really about giving your the time to play the big game. That is, acquiring your competitors and expanding your service by adding complimentary services. 

When you get to this stage, business growth is exciting and rewarding. One of my favourite books on the subject is “The Magic of Thinking Big” by David Schwartz.

So don’t let the day to day busyness get in your way. Start today by committing to building your leftover to 3 times your wage, and get to work on building your business system so that your business can work for you.

Different business graphs with Think Bigger sign
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Getting an Agent or Distributor to Help You Expand into International Markets

For Australian businesses, the international market offers an excellent opportunity for business growth. For companies looking to expand into international markets, sourcing an agent or distributor is generally the first step. Before this step is taken, it is essential to understand the role of the agent and distributor, and to research the type of agent or distributor that will be of benefit to your business.

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Building and Maintaining a Collaborative Team Culture in Your Business

Collaboration is key in an efficient workplace. Not only is it essential in maintaining a happy work culture, it improves productivity. When staff work in isolation, things invariably get lost or missed. When the team works together, however, it’s astounding how efficiently the work gets done.

productivity monitoring
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Organisational Development: How It Helps Your Business

Rumen Iliev defines organizational development as, ‘improving a company’s performance and individual development of its employees. Each organization should be viewed as a coherent system composed of separate parts. Organizational development as a process includes methodologies and achievements in strategic planning, organizational design, leadership development, coaching, diversity and balance between work and life.’

productivity monitor
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Where To Look For Growth & Profit Opportunities in Your Business

As several studies have concluded that diversification of your business does not necessarily mean that you will be making any more money.

Depending on the type of diversification strategy you might choose, a variety of risks can be introduced into your business. And, with many of those risks related to external influences that you have little or no control over.

So, if just diversifying your business interests does not necessarily guarantee business success, what then, does?

If you are thinking of diversifying your business here are five things to consider:

 

  1. What is your business?

    Define your business in twenty-five words or less and list the services you provide.

  2. Who are your customers?

    Who are the people that will pay you to perform services for them?

  3. What are your business’s strengths and weaknesses?

    List your strengths. They could be quality products and services, good customer services, competitive pricing or a great location. You must also list your weaknesses such as lack of finance, limited knowledge, little promotion of the business or not offering enough related services.  

  4. What are your business opportunities and threats?

    Opportunities are favourable factors for your business, which help you achieve your objectives (increasing population, increase in demand for your goods and services or availability of finance) and threats are the unfavourable factors that prevent you achieving your goals (intense competition, economic downturn, a decrease in demand for your goods and services).  

  5. Look for ways to diversify your business

    Look for ways to diversify your business but make sure that these activities are related to your core business activity, which you will have identified in when you did your business definition.

 

If you need to get an objective perspective about how you might diversify your business, contact David Guest’s office for a no-obligation consulting session.

 

Contact David Guest
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Five Questions Often Asked About Working With David Guest

Ever thought your business was capable of so much more? Ever wondered how you and your team could work to achieve the amazing business potential you dream about?

3 Management Skills You Need for Managing a Virtual Team
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A Word On Systems For The Small Business Owner

Systems are not just important to large corporations. They’re a vital component of any business wanting to make growth a part of their strategy.

You see, the challenge that every business owner faces is that they are so busy working in their business that they cannot see the potential of their business. By introducing systems into their business, they are able to elevate themselves into a position where planning, strategising, relationship building and business generation become part of the norm.

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Test and Measure Your Way To Marketing Success

So often it’s only too easy to see the success in marketing. Amazing lead generation. Fantastic conversions. Sales skyrocketing out of this world.

The reality is that before a marketing strategy becomes successful,they have often been painstakingly refined and relaunched.

How do you set out to create your most successful marketing strategy yet?

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Achieve Faster Business Growth With Your Own Team

In the modern business world the things that create business success are commonly confined to quality initiatives, superior service, reducing the cost of doing business, viral marketing campaigns and speed to market.

None of which addresses the one most important key to business success – a great team.

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Why Emotional Management Is Good For You & Your Business

Managing your emotional state is paramount to your success as an individual and as a business owner. We attract what we think and negativity will only attract negative things to your business. Business mentors and business consultants like David Guest in Melbourne can guide you to what is known as emotional management. There are various aspects of emotions and emotional management; and a business mentor will stress the importance of your emotional management for your business.

5 Reasons Why Emotional Management Is Good For You & Your Business
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