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Today we're going to dig into two surprising ways to grow your small business for even more profit and greater peace. Most business owners I work with are in one of three stages of business ownership and trying to achieve the next: One, start up and survive. Two, grow and survive. Three, sell and survive. This illustration may be over-simplistic but I suspect it's more on point than off. What we'll be covering in today's mini training is most applicable for business owners in stages two and three and should be a goal for those of you in stage one. The first surprising way to grow your business for more profit and greater peace is to:
1. Take a Vacation. And turn your phone off. Gasp! I know. It is not uncommon to be a business owner that does ALL.THE.THINGS. Sometimes that is out of necessity because you're on a shoestring operating budget. Other times it could be because you haven't yet mastered the art of delegation or even it could be a challenge for you to release control. Regardless of the reason behind what's causing your businesses over-reliance on you as the owner, it is crucial for the health of your business that it be able to run without you. And the fastest way to find out is, you guessed it, take a vacation and turn your phone off! If you're really bold (and have a well established company), I dare you to leave the country and turn your phone off for two weeks to see what happens. We've seen and heard from multiple business owners that when they left town and left the business and employees to their own devices, revenues actually increased! If you're not that bold or have a business that is less established you might consider taking a few mini breaks through out the year for a neighboring town/county stay-cation. That way if it all goes to hell in a hand-basket, you're just a short drive away and can put out fires as needed. Creating a company that can run without you will increase your ROI simply because it'll allow you to re-invest your time elsewhere. It'll offer greater peace because you'll either be doing more satisfying work with your free time or less work period. This is an attractive feature to the types business buyers that we represent because it means the same for them. If you aspire to create and grow a business asset that can someday be sold, it is very important that it run without you as much as possible. So, I encourage you to get started firming up your business systems and foundation by taking a vacation! 2. Create Recurring Revenue. Not all revenue is created equal. Recurring revenue is usually more attractive to a business owner (and a business buyer) than having to make a sale to a new customer for every new widget that goes out the door. What if you had a widget subscription box that made up 50% of your revenue? Or, like a gym, your customers signed a 12 month contract and you knew you could, more or less, count on those future accounts receivable? John Warrilow wrote a great book on this subject that I encourage you to read, The Automatic Customer: Creating a Subscription Business in Any Industry. "Warrillow provides the essential blueprint for winning automatic customers with one of the nine subscription business models, including:
Recurring revenue increases your profits because it usually decreases the cost that goes into each product or service. It increases your peace because it means you don't work near as hard to replicate each product or service, or as they say, work smarter rather than harder. Which model would you experiment with first in your business? I invite you to share your feedback below via email or better yet, why not grab a FREE no-obligation strategy call on my calendar using my scheduling software here. I look forward to helping you maximize your life and business! |
AuthorKatie is coach, entrepreneur, and deal-maker that partners with business leaders in creative ways to maximize potential. She understand the complicated lives of entrepreneurs and believes the world would be a better place with even more successful small businesses. A fourth-generation entrepreneur, Katie purchased her first business in 2010 and has partnered with hundreds of business leaders to accomplish their goals, challenges, and visions for a bigger future. Katie is certified in Conversational Intelligence® — the neuroscience of leadership, and holds a B.A. in Business Management from Luther College in Decorah, Iowa. Archives
November 2019
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