Tell me if you can relate to any of these situations.
- As a business owner you see the same problems re occur time and time again, either by your staff, or even yourself.
- Your business seems to have consumed you and you need to keep working to keep the bills paid.
- You feel trapped in your business now and spending quality time with your family and friends is a distant memory.
If you can empathise with the above scenarios then I have good news for you. There is a cure, and I will get to it shortly.
Before I do this though I would like to pose a question to you.
If you could double, even triple the value of your business without having to get more customers by implementing one simple strategy in your business, would you do it?
If the answer is yes, then keep reading because the following steps will have a massive impact on the future of your business.
Three Simple Steps To Doubling The Value Of Your Business!
1.Set Clear Goals – Targets
I know many of you have heard this before. Set Goals, have an action plan. Well before you roll your eyes, and think, not this again. ARE YOU DOING IT?
Have you told your subconscious mind what you want in your business, and your life? If not, how is it going to get it for you? If you commit to writing down your goals every day for the next 30 days, you will be amazed at the improvements that start to occur in your life.
I implore you to not just wake up and hope for the phone to ring. DECIDE how many times you want it to ring each day and then create a simple marketing plan to make it happen.
DECIDE what your turnover and profit will be for the month BEFORE the month begins and create a sales system to make it happen. Even if you fall short, the very at of making a plan and working towards it will help you improve your profits.
2. Use Leverage
To be truly successful you will need to start using leverage in these three areas:
Let’s speak to TIME:
As a business owner it is very easy for you to get into the habit of doing everything your self. And trying to fix everything yourself. For you to create a business and not a job, you need to build a team around you, and leverage their time towards the common goal.
I know some of you are concerned about employing people because that means you need to commit to the creation of a real business, and it also means responsibility for others. I have a simple strategy for eliminating these fears. GET OVER IT. Think of what it costs you not to have these people on your team. So, please start looking for those people to help you get where your going.
Let’s speak to MONEY:
Many of you probably have a mortgage, and, with a little luck you are achieving a capital gain on your investment. Where did 80% of the money come from? For most of you a bank. And so you are leveraging of that borrowing to make money.
It is the same in business. If you can use other peoples money (without getting too highly geared) you should maximise this resource as much as possible. (please see your accountant for advice on this. Here is an example of what I mean.
You are a painter, you have a lot of work on and you know that you could keep another team busy and they would generate an extra $20,000 a month profit for you. but you do not have enough money to buy another vehicle and deck it out because it would cost $60,000.00
2 choices – Knock work back and keep rushing around or Finance another vehicle.
Getting a $60,000.00 loan would cost approx $1,400.00 per mth even at 14% Interest.
So the cost of not leveraging other peoples money is $18,600.00 per month (The $20,000 you can make per mth in profit – cost of financing)
Over a year that cost of inaction would amount to $18,600*12 months = $223,200.0 OUCH
Let’s speak to KNOWLEDGE:
For 15 years I struggled to make about $50k a year as an electrician. I refer to these as my Sheepsmart years.
I then found my first business mentor and he shared his sales and marketing knowledge with me fast tracked my results. Within 5 years my business was doing $12 million a year.
How did I get such a great result? I simply leveraged other peoples knowledge to put me into the speed wealth zone. And since that day I have always had a business coach or business mentor guiding me and fast tracking my results. On average I usually get a return of 10-1 on my investments so I urge you to find a Business Mentor, with a Proen Track record that you relate to and start leveraging their knowledge ASAP. Yes there is a financial investment but I look at it like ripping off a bandaid. Simply Pay Once – Cry Once and then start reaping the rewards.
Now for the final part of the formula to success.
Remember the scenarios I began this article with . Seeing the same problems re occur, feeling trapped in your business, no family or me time.
9 times out of 10 these are simply symptoms of not having Business systems.
Let me share a story that happened just last week. I had a client that installed split systems as part of his business and he was telling me that it takes him 6-8 hours to install one split system.Well, in a previous life I was a refrigeration mechanic and in my company the longest it would take any of my teams to install a split system was 2.5 hours, occassionally 3 hours. Any longer and I would need a please explain. Now our installations were still high quality. They had to be because in my time I gave a TEN year parts and labor warranty.
So why does it take my client 6-8 hours and my guys 2-3 hours to do a high quality installation? It is simply having a system for installation. And what is the cost of not having a good system in summer?
Well we could easily do three split systems a day = $1500.00
He could do one a day = $500
Cost per week of no system = $5,000.00
Cost per month = $20,000.00
Cost per year = $240,000.00
This is only one example of the high cost of not having systems from a practical perspective.
Now let me leave you with an absolute compelling reason.
If you build a business that relies on you and does not have a team delivering on your promises there is a high chance that een if you could sell it the value would be about 1 * profit.
eg: Annual profit = $500k that is what you may get plus Stock at value
Lets say the same business is making the same profit but has developed systems and a team to delieve on the promises rather than the owner that same business will now very likely be valued at 3 times net profit or $$1,500,000.00
So, when all is said and done after working 5-10 years in your business and you wish to sell your business. What would you prefer your payout to be? $500k or $1,500.000.00
I would take the second option.
So, there you have it, the formula to doubling the value of your business without getting more customers.
If you like the idea of creating a business and not a job, and would enjoy a million dollar payday then click below and use our Business Accelerator to help you achieve your Business Goals.