You can only control what you have control over in business

| April 16, 2019

Imagine if the government legislated that unless you doubled your business in 12 months you couldn’t stay in operation. You would have to certainly think differently than you do now and become more active to achieve stronger results. Is your business currently big enough? The answer to that question likely depends what you expect your business to achieve.

Do you have what it takes to build a business?

I meet so many people who have gone into business for the wrong reasons. They started up their business because their last boss was an idiot. Working for themselves was a lot easier than having to answer to a boss. So what many new business owners actually do is buy themselves a job and forget to act like a business owner. They continue to be the technician. Being in business can be challenging. It takes a high level of self-awareness and confidence to build a successful small business. There is oneoverriding reason why people should build a businesses. That is to make a profit. To be successful you need to make more money than it costs you to operate the business. To build a strong successful business it takes seven to ten years. Startup businesses might not realise a profit in the first 2-3 years. All businesses need enough money to support the growth and development of the business during start up.

Strategies to double your business revenue

I want to give you some ideas of how you could double the revenues of your business in less than 12 months. You could double your prices and sell higher valued items. You could negotiate with your suppliers to reduce the cost of what you sell. Perhaps you could find more customers to convert more leads into customers. Sell more things more often to your existing customers. You could double your business by expanding and buying out your competition. Acquisition of other similar businesses can be very effective. The challenge is not to double your expenses and problems at the same time. If your business is not running efficiently and effectively and you double it you will also double your troubles and headaches.

Three key thing to watch and measure in any business

The three key things to control in any business our not paying your accounts too early, having too much cash tied up in inventory and not collecting the money that is owed to you in a timely fashion. It is imperative that you keep a close eye on these elements of your business. If you don’t, you will experience a cash gap. That is when you don’t have enough money to pay your bills on time.

Who cares what you do in your business?

There are only two identities that really care if your business works, that’s you and the taxation office. The taxation department expect you to pay your taxes on time. In Australia for every dollar you make through business you only own 70% of that dollar. Take great care not to spend that 30% that is not yours. Once you have spent it, it’s hard to find to meet your payment obligations.

If you only know one business number, make sure it’s this one!

One of the most important numbers you must know in your business is the gross margin % (GM) that you make on every product or service that you sell. This number shows you where you are making money and more importantly where you are losing money in your business. It is not your accountant’s job to know your business numbers on a daily or weekly basis, it’s yours.

I ask business owners if they would let a builder build their dream home without a plan and a budget, they answer “no way” yet many business owners are building their business with no plan or budget. That doesn’t make sense and seems hypocritical.

What do you do? What’s your business? Tell more people about it

To double your business you need a plan, some strategies and specific actions that you are going to take to double it. The biggest problem that all businesses have in common is that not enough people know you exist. You spend so much time in your head and in your business. Thinking about it day and night and you assume others are aware of your business and you. They are NOT. People only look for you when they need something that your business sells or provides.

Are you up to the challenge? Prove it!

Your challenge is to speak to more people, let them know you exist, develop relationships with as many of them as you can. It is well documented that people buy off people they like. They can’t like you if they don’t know you. And I don’t mean like you on Facebook, I mean like you in real life, in person. Don’t forget to tell people you want to double your business, ask them to help you achieve that specific business goal. Get people on board, conspiring for your future success. Set clear goals and ask people to help you achieve them. Don’t keep your dreams and aspirations a secret, because too many small businesses do.

To double your business you have to take bigger risks and your courage and creativity have to be bigger, much bigger than your current business. The winners circle is never crowded because business owners don’t make time to apply these basic principles.