Why every business should have a strategy for growth and how to do it
Why every business should have a strategy for growth and how to do it
But, she was working harder than ever and her dreams of taking long holidays in the sun seemed to be a distant fantasy.
Celia had hit the ceiling
Celia seemed to be at a dead end again. She had felt like this three years ago when sales had rocketed and she was struggling to keep up with production. To cure this she employed someone to do the production so that she could concentrate on sales. However, within the last few years her sales growth had tapered off – it wasn’t that she was losing sales, but that she wasn’t getting any more.
The business was profitable, but not to the level which would allow Celia to realize her dreams of long holidays in the sun. The new range of corporate cookies had enabled her to increase her prices for that market segment, but there was still a limit on how much people would pay for a cookie.
So, Celia did that maths and worked out how many cookies she would need to sell to reach her profit goals. That was when it dawned on her that not only did she not have enough customers but her pool of potential customers was too small.
The ceiling was caused by geography
The ceiling Celia had hit was caused by the laws of geography. Celia’s hometown had a small population. Even if everyone in her town bought her cookies (which was extremely unlikely anyway) her profits would still be modest because her margins were small.
Celia had a very important decision to make: either stay small (and put up with modest profits) or grow big and realize her dreams.
Celia decided to grow her business
Celia realized the whole purpose of going into business was to give herself freedom to do as she wished. Only increased profits and more time would do that. So, she set about planning the next stage of her business growth. There are a number of options available to her, each with their advantages and disadvantages. She decided to list them on a piece of paper to get a better perspective:
• Option 1 – Open another cookie store: This way she would double her potential market. It would be like starting again but in another place. This time it would be easier but there was still the capital outlay of finding premises and she would need good staff to manage the store for her in her absence. Profits would probably drop before they rose, but in the long term she would be better off;
• Option 2 – Create a franchise system: By creating a franchise system Celia would be giving someone else the right to run a business using her recipes and her brand. This would avoid Celia the capital outlay of finding premises. However, there was quite a bit of work involved writing the manuals for her potential franchisees and at the back of her mind she was worried that her franchisees would not make the cookies like she could. That in turn could damage her brand;
• Option 3 – Find sales agents: The third option was to find sales agents around the country. She felt this option may work for her corporate cookie range. The sales agent would go into businesses and sell regular orders of corporate cookies. Celia would still be responsible for manufacture and delivery, and she would pay the sales agent a commission on sales. This would be very cost effective for her but she would be reliant on the enthusiasm of the sales agent.
• Option 4 – Find distributors: Here she would sell boxes of cookies to retail stores around the country. She could start small with local grocery stores but eventually get into some of the larger supermarkets. She realized though that she needed to build the credibility of her product first and streamline her production if her distribution network was to grow exponentially.
• Option 5 – Sell online: A relatively small investment into an online shop would increase her potential customers exponentially. However, she knew this wasn’t the magic bullet. Having an online store was not enough. She also needed a strategy for marketing that website and pushing it up the search engine rankings. That would take time and money.
Why not stay small?
Whichever option Celia chose she knew it would involve more investment – both in time and money. There would need to be watertight agreements set up with franchisees, agents, distributors or web developers. It almost felt like she was starting all over again and she hated that feeling. However, if that investment was made properly the rewards could be great. She realized she had gone into business for a reason – to give herself freedom. To realize that dream she needed to take the next step.
For the first six years of her business she had wandered aimlessly without a vision and she could attribute many of the mistakes made in those first six years to that one failure. All of a sudden she got clarity and purpose. By identifying her strategy for growth she realized that she really wanted to develop the corporate cookie idea and expand that concept through sales agents. The margins were higher and she had a niche in the market. In hindsight she wished she had created a strategy for growth at the beginning of her entrepreneurial journey. That way, she wouldn’t have that feeling of starting all over again and could have saved a lot of time.
Why every business should have a strategy for growth and how to do it - To learn more about this author, visit Michael Smyth's Website.
Like this article? Share it with your friends
Celia made great cookies, but she wasn’t making great money. Six years of hard work and she’d virtually cornered the cookie market in her home town. Her new range of corporate cookies (cookies for corporate gifts) had enabled her to capitalize on a new market segment and charge a higher price.
But, she was working harder than ever and her dreams of taking long holidays in the sun seemed to be a distant fantasy.
Celia had hit the ceiling
Celia seemed to be at a dead end again. She had felt like this three years ago when sales had rocketed and she was struggling to keep up with production. To cure this she employed someone to do the production so that she could concentrate on sales. However, within the last few years her sales growth had tapered off – it wasn’t that she was losing sales, but that she wasn’t getting any more.
The business was profitable, but not to the level which would allow Celia to realize her dreams of long holidays in the sun. The new range of corporate cookies had enabled her to increase her prices for that market segment, but there was still a limit on how much people would pay for a cookie.
So, Celia did that maths and worked out how many cookies she would need to sell to reach her profit goals. That was when it dawned on her that not only did she not have enough customers but her pool of potential customers was too small.
The ceiling was caused by geography
The ceiling Celia had hit was caused by the laws of geography. Celia’s hometown had a small population. Even if everyone in her town bought her cookies (which was extremely unlikely anyway) her profits would still be modest because her margins were small.
Celia had a very important decision to make: either stay small (and put up with modest profits) or grow big and realize her dreams.
Celia decided to grow her business
Celia realized the whole purpose of going into business was to give herself freedom to do as she wished. Only increased profits and more time would do that. So, she set about planning the next stage of her business growth. There are a number of options available to her, each with their advantages and disadvantages. She decided to list them on a piece of paper to get a better perspective:
• Option 1 – Open another cookie store: This way she would double her potential market. It would be like starting again but in another place. This time it would be easier but there was still the capital outlay of finding premises and she would need good staff to manage the store for her in her absence. Profits would probably drop before they rose, but in the long term she would be better off;
• Option 2 – Create a franchise system: By creating a franchise system Celia would be giving someone else the right to run a business using her recipes and her brand. This would avoid Celia the capital outlay of finding premises. However, there was quite a bit of work involved writing the manuals for her potential franchisees and at the back of her mind she was worried that her franchisees would not make the cookies like she could. That in turn could damage her brand;
• Option 3 – Find sales agents: The third option was to find sales agents around the country. She felt this option may work for her corporate cookie range. The sales agent would go into businesses and sell regular orders of corporate cookies. Celia would still be responsible for manufacture and delivery, and she would pay the sales agent a commission on sales. This would be very cost effective for her but she would be reliant on the enthusiasm of the sales agent.
• Option 4 – Find distributors: Here she would sell boxes of cookies to retail stores around the country. She could start small with local grocery stores but eventually get into some of the larger supermarkets. She realized though that she needed to build the credibility of her product first and streamline her production if her distribution network was to grow exponentially.
• Option 5 – Sell online: A relatively small investment into an online shop would increase her potential customers exponentially. However, she knew this wasn’t the magic bullet. Having an online store was not enough. She also needed a strategy for marketing that website and pushing it up the search engine rankings. That would take time and money.
Why not stay small?
Whichever option Celia chose she knew it would involve more investment – both in time and money. There would need to be watertight agreements set up with franchisees, agents, distributors or web developers. It almost felt like she was starting all over again and she hated that feeling. However, if that investment was made properly the rewards could be great. She realized she had gone into business for a reason – to give herself freedom. To realize that dream she needed to take the next step.
For the first six years of her business she had wandered aimlessly without a vision and she could attribute many of the mistakes made in those first six years to that one failure. All of a sudden she got clarity and purpose. By identifying her strategy for growth she realized that she really wanted to develop the corporate cookie idea and expand that concept through sales agents. The margins were higher and she had a niche in the market. In hindsight she wished she had created a strategy for growth at the beginning of her entrepreneurial journey. That way, she wouldn’t have that feeling of starting all over again and could have saved a lot of time.
Why every business should have a strategy for growth and how to do it - To learn more about this author, visit Michael Smyth's Website.
Like this article? Share it with your friends
 | |
 |
No article feedback found. |
| |
Leave Your Feedback |
 | |
| |||
Anne BarrAnne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations, networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website |
|||
Leanne Hoagland-SmithAre your sales where you want them to be? Will you be one of the few who achieves sales or business success or one of the many who have failed to change? Are you tired of being told you are like everyone else? Then you may find my first book on sales of interest. Be the Red Jacket in the Sea of Gray Suits, The Keys to Unlocking Sales available at Amazon or at http://www.processspecialist.com/red-jacket.htm. This book is a reflection of my no-nonsense approach to improving sales to overall business results. If you are truly committed to making sustainable changes, then I can help you secure a positive return on your investment because I focus on executable solutions not telling you the problems you already know you have. From training to corporate (group) coaching to executive one on one coaching, my approach is to assess, create awareness, build a goal driven action plan and then execute. The bottom line question is "Not do you or your employees know it, but do you or they want to do it?" Please call for a free strategy session at 219.759.5601. - Visit Leanne Hoagland-Smith's Website |
|||
Jeff FosterWebBizIdeas.com is a Minneapolis website design company founded to help people start an internet business by providing them with website, business, and internet resources that help foster the growth of successful online businesses and develop innovative Internet business ideas. We specialize in internet consulting & internet marketing. - Visit Jeff Foster's Website |
|||
George LudwigGeorge Ludwig is a recognized authority on sales strategy and peak performance psychology. An international speaker, trainer, and corporate consultant, he helps clients like Johnson & Johnson, Abbott Laboratories, Northwestern Mutual, CIGNA, and numerous others improve sales force effectiveness and performance. Though it's George's strategies and processes that help corporations increase productivity and performance, it's his tremendous energy and dynamism that spark the transformation. Again and again, clients remark on his amazing ability to unleash human capacity and inspire men and women to break out of their comfort zones. The result is a whole new type of salesperson. His customized presentations teach achievers to make stunning advances in their lives. From helping salespeople realize cherished dreams to helping corporations exponentially accelerate revenue streams, George Ludwig leaves audiences and individuals empowered, emboldened, and clamoring for more. George is the best-selling author of Power Selling: Seven Strategies for Cracking the Sales Code and Wise Moves: 60 Quick Tips to Improve Your Position in Life & Business. - Visit George Ludwig's Website |
|||
David BarrDavid Barr is the President of Venture Opportunities, Inc. David has been a professional business broker/intermediary since 1980 focusing on General Business Brokerage and Mergers and Acquisitions representing client transaction value from $400,000 to $20,000,000. Mr. Barr has handled the sale of over four hundred and fifty companies. David earned a university degree from the State University of New York majoring in economics and business. David holds the Mergers and Acquisition Master Intermediary and the Certified Business Intermediary designations from the International Business Brokers Association. He is also a Senior Business Analyst and a Texas licensed Real Estate Agent. For more information about David and Venture Opportunities, visit www.bizdealmaker.com. - Visit David Barr's Website |
|||
Casey GollanCasey Gollan, Business Coaching & Mentoring Programs. Add $1 Million to $10 Million in the next 1 to 3 years. Since 1996 Casey has to added hundreds of millions of dollars to businesses. Watch a free video see client results Business Coaching website. - Visit Casey Gollan's Website |
|||
Kim CastleWith nearly two decades in the advertising and design business, with clients like Domino's Pizza, General Motors, Direct TV, Pedigree, Wolfgang Puck, Higher Octave Music, Hollywood Celebrity Products, Disney, and Paramount, as well as thousands of entrepreneurs around the world define, structure, communicate, and position their business for greater profits, BrandU(R) co-creators Kim Castle and W. Vito Montone discovered that entrepreneurs could experience the same power that big brands command for a fraction of the cost with the world's only process-based results-drive Integral approach to business creation. BrandU(R) is helping entrepreneurs grow with the power of extreme clarity from idea...to brand...to market(TM) and helping one million entrepreneurs become successful and whole so that they can make a difference in the world. Are you one of them? If you want to experience clarity all the way to the bank(TM), get started now at http://www.brandu.com. - Visit Kim Castle's Website |
|||
David AchesonDavid Acheson is the founder of DCJA Consultancy. DCJA Consultancy is a management consultancy business specialising in B2B sales consultancy. They offer bespoke and packaged sales consultancy including Sales Optimisation Review, Interim Sales Management, Sales & Marketing Review, 1:1 Sales & Management Staff Analysis, Management Training, Solution Sales Training, Creation of New Pay Plan, KPI's, run Customer Feedback Campaigns, assist with Recruitment, Coaching, Appraisals and set up Strategic Marketing Campaigns. David spent his early career in accountancy and then moved into sales in 1982, working in Office Equipment, IT, Advertising, Training, Outsourcing and Consultancy. He has held many Senior Positions in SMBs and Global Organisations including Head of Sales Operations & Head of Business Development. His knowledge, skills and great experience of the Sales Industry has led to David making keynote speeches and running educational sessions to key businesses through organisations including The Chamber of Commerce and Business Link. - Visit David Acheson's Website |
|||
|
To learn more about the Evan Elite Author Program please contact us. | |||
 | |
|  |
Subscribe to Michael's articles
 | |
|
|  |
 | |
|
| |
 | |||||||
|
 | ||
 |
||
 |
||
 |
||
|
| ||
 |
| Have you written articles that would be of value to entrepreneurs? Become an expert on our site by publishing them! Expose yourself to a wide audience, drive more traffic to your website and get more sales! Click Here for details. |
|
|
 |
| Modeling the Masters: Learn the true secrets behind Walt Disney's business success factors & grow your company! Video produced by Phanta Media |
|
|
 |
"Learn straight from Evan how you can Make a Full Time Income (And More) from a Website"
Click Here To Learn More |
|
|
|
|
Get advice & tips from famous business owners, new articles by entrepreneur experts, my latest website updates, & special sneak peaks at what's to come!
|
|
|
 New Year Revolutions 4 QuickBooks Blunders Venture Capital Guide Personal Leadership Creating Rapport Guide |
|
 | ||
 |
Fortune Hunters
CBC Entrepreneur TV | |
 |
Write The PR
Press Release Builder | |
| ||
 | ||||
| ||||
|
| ||||
| ||||
|
|
|
|
|
||||||||||||
|
Email us your ideas on how to make our website more valuable! Thank you Sharon from Toronto Salsa Lessons / Classes for your suggestions to make the newsletter look like the website and profile younger entrepreneurs like Jennifer Lopez and Sean Combs!
|
|
|
| ||||||||||||
| ||||||||||||
|
|
||||||||||||