Business Growth Articles

Step 5 of 5: Turning your business into a profit-making machine!

 

If you have followed each and every step up to now, you should be in a position to finally enjoy the fruits of your labour. Obviously, if you haven’t implemented any of these steps but instead continue doing what you have always done whilst expecting different results, well then I’m afraid that this guide will be absolutely useless!

Until you change your mindset:-) Which, after re-reading this guide I am confident you will do, as you realize that doing what you have always done and expecting a different result is actually the first sign of madness!

But you are a successful business person who understands a basic 5 step program and how important it is to implement it.

You do, don’t You?

As I said in the introduction to this guide, it is deceptively simple at first glance, however after years of experience in various industries I can tell you that the businesses I know who implement each and every one of these are few and far between. I can also tell you that the best example of successfully implementing all 5 of these steps that I know of (and sold by a mentor of mine) actually achieved a sale price of well over $80M and the business wasn’t even freehold!

For those of you who have read all five steps, this is the same company I worked in when first arriving in Australia with the incredible mentoring & training of all staff each Wednesday, 18 weeks of the year. Who said employees were unimportant?

Now, for Step 5: Freedom to choose

Okay, at this stage you have a business which runs without you, what next?

You’ve done the hard yards; you must now optimize your achievements by putting in place continuous improvement programs to ensure that the business can go on running without you.

I would suggest here that the strategy workshop you ran back in Step 1 be run twice a year, ideally a couple of months out from the beginning of the financial year and again at the half-way mark. Include budgets, capital expenditure and new product development.

Speaking of which, where is your product in its life-cycle, should you be preparing for its replacement. Do you have a replacement? Make this part of your strategy. Have your team (because at this stage they are running your business) look into R & D grants, Export Development grants etc.

Now is not the time to take your eyes off the road! Sure, your business now runs without you, but make sure that you keep planning ahead; this is not a one-off exercise.

Your role at this stage is that of CEO; it is important that you analyse the reports, benchmarks, KPIs etc AND act on them. By this I mean request clarification, express concern, demand action!

Continue to look to the future with ongoing growth strategies, consider JVs, mergers & acquisitions.

Even at this stage (and in reality even more so), independent advice is critical, be active in business leader associations, use a mentor, give & receive feedback AND act on it!

Well done! You now have a business that is “investor ready”.

You have a saleable asset; whether you decide to ever sell it is entirely up to you.

You have regained your freedom, you are comfortable in the knowledge that you have a profitable business and that you have reliable cash flow projections.

Now you really get to enjoy working on the business, whether that’s networking at events, working on joint ventures, contemplating licensing or franchising – it’s totally up to you!

Maybe you have always wanted to expand interstate or overseas? Thanks to the first four steps, you are now in a position to be able to seriously consider this. With your strategy, marketing, systems & people all aligned, you now really can set up distributors, licensees or franchisees and/or become an international company.

The reality is; you now really do have the freedom to choose and have the tools available to know the implications of your decisions.

This is the exciting part; you have now arrived in the top 7% of SMEs.

So there it is; the 5 critical steps to becoming investor ready.

I hope this guide has been helpful, that it inspires you to act and that you achieve your goals.

About the author of “5 Critical Steps to Making Your Business Investor Ready”:

With over 26 years in manufacturing and a good many of those in management roles I have successfully implemented the above steps several times.

As a business growth consultant I help business owners become investor ready. It is also something I am very good at and enjoy doing.

Why would you hire my services rather than one of the many consulting or coaching franchises who have probably knocked on your door telling you how great their program is and how it will increase your profits in a few simple steps?

Well the problem is that they are mostly selling a one-size fits all out-of-the-box package which they received on their one week training course after paying a substantial franchise fee.

Chances are they don’t even understand manufacturing.

What they really sell you is a step-by-step guide on how you need to systemize your business and that they are there to keep you accountable.

Now that’s fine if their experience actually aligns with your needs, however I have found that in most cases they are marketing people.

On the other hand, I have been in manufacturing all my working life, know and understand how it works. I don’t sell programs; in fact I don’t sell anything!

What I offer is to work side-by-side with you and your senior management team to:

  • Prioritize problems/issues to be resolved
  • Agree on expected outcomes
  • Agree that this is something I can resolve
  • Agree on the value of these outcomes i.e. extrapolate the added value of the exercise to your company and what this is worth.

To put your mind at ease, if the work that needs to be undertaken is not within my expertise I will say so.

If I don’t honestly feel that I can help you get to that day with the potential buyer where you really do have a saleable (and valuable) asset then I will decline the contract.

Imagine again its 12 months or two years from now.

A potential buyer walks into your business and asks to see how things operate….

Will you be investor ready?

After reading this guide you should by now be aware of my capabilities and your needs. If you feel that the services I offer and the expertise and experience I bring to the table could be of benefit to your company, please feel free to call me to book a diagnostic session.

Please be aware that this will require 45mins of uninterrupted time and will require all decision makers to be present.

Rest assured that this is an obligation free session to determine the status of your business and if indeed I can help.

John Maher

Business Growth Specialist

0425 781 752

johnmaher@tpg.com.au

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