The 6 Rules for Business Growth

by Anthony Moss and Blair Saddington / Incite Management Group

Business planning is not a budget or a SWOT analysis or a mission statement. Business planning is but one step in the process of what we like to call “the Rules for Business Growth”. How difficult is it to do business? Let’s face it, owning and managing a business is not easy. Global competition, government legislation and multinational corporations all make it difficult for small and medium sized business to thrive and grow. To achieve this growth you have to find ways of doing things better than the competition. We have to change our attitudes as business owners and be prepared to commit to a process. Become a student of your business.

We adopt six (6) basic rules with all our clients. In essence, we believe they are the rules or tools to make business better.

Rule 1 - Understand What Business You Are In & What the Lifecycle of Your Business is

Ask yourself: What business are we in? What business should we be in? You need to understand how you add value to your customer or their business. Don’t try to be a leader in all aspects of your business. No one can. Concentrate on those areas that you have identified are important to your customers (your Value Proposition).
When you have identified your Value Proposition or Competitive Advantage, write it down. Focus on where you add value. Is it steel tubes with helixes welded to them you sell or is it providing your clients with quicker, less expensive, more environmentally friendly ways of servicing their clients?
When you look at the lifecycle of your business identify the historical growth patterns of your business, where it has come from, what were the key success factors, how was the business funded and what were the buying patterns of your customers?
Assess the future by reference to changing market conditions, tactics of your competitors, changing supply patterns and distribution channels. Assess the changing drivers in your business. Is it driven by revenue growth, cost reduction or market expansion?

Rule 2 - Develop an Operating Model that delivers on your Value Proposition

Implement processes that can be replicated to cater for volume business.
Ensure staff are aware of your business mission and understand your competitive advantage.

Rule 3 - Get the Right Team & Recognise the Important of Your Employees

Magnify your own skills by surrounding yourself with good people.
Motivate and “incentivise” your staff to achieve your value proposition. Give employees a sense of ownership in your business. CHANGE THE CULTURE. We spend on average 50% of available time awake at work. Make it a place your
employees want to be. Communicate and involve them in matters pertaining to your operating model.

Rule 4 - Trim Overheads - Cost Reduction

Cost is always your enemy. Identify you 5 largest expenses and make it a goal to reduce them.

Rule 5 - Develop a Business Plan - "Have a Strategy"

If you don’t have a vision and a road map for the future you are going nowhere. The first 4 rules:

Understand your business and its life cycle
Develop an Operating Model & Value Proposition
Get the Right Team
Trim the Overheads

These are all the building blocks of developing a business strategy.

Developing a Business Plan is the mechanism by which you impart to the rest of your company (and to other stakeholders, including bankers and shareholders) your vision of the future and how to reach it.
Your strategy has to be clearly plotted for growth over time, innovation, technology and capital expenditures - all with an eye toward profitability. A real strategy looks atshort and long term results. Know where you are going today and tomorrow.
Make your business plan a living breathing document. Have action plans and review them weekly, monthly yearly. Set new goals in line with the direction you want your business to head. Involve your staff and consult third parties (rule 3).

Rule 6 - Develop First Class Management Information Reporting Systems

Always ensure you are informed about the matters that really count. Relevant and timely information flow to third parties such as banks, distributors and suppliers is the calling card to establishing successful business relationships.
Remain informed about your competitors, your market position, trends and opportunities. Information is the lifeblood of business.

Anthony Moss and Blair Saddington (Incite Management Group)

Anthony Moss has more than 22 years International Management experience working in general management and sales and marketing in manufacturing, wholesale and service industries located in Europe, the US and Australia.

Anthony provides clients with practical, workable solutions to improving business performance. Specialisations include:

• Market Entry Strategies-Export and Import
• Succession Planning and Exit Strategies
• Strategy development and implementation
• Marketing and Sales Planning