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Double your Sales - Growth Strategies for Small Business

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Quest for Holy grail of business i.e. Increasing Revenue while keeping investment constant

Quest for Holy grail of business i.e. Increasing Revenue while keeping investment constant

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  • 1. Growth Strategies for small business Orange Office Los Angeles Office growth@cpsphere.com 17215 Studebaker Rd. Suite 390 Cerritos, CA 90703 5777 W. Century Blvd. Suite 1500 Los Angeles, CA 90045 PARTNERS IN SUSTAINABLE GROWTH www.cpSphere.com P: 1.562.860.8637 P: 1.310.645.0707
  • 2. GROWING YOUR BUSINESS IS JUST LIKE… Orange Office Los Angeles Office growth@cpsphere.com 17215 Studebaker Rd. Suite 390 Cerritos, CA 90703 5777 W. Century Blvd. Suite 1500 Los Angeles, CA 90045 PARTNERS IN SUSTAINABLE GROWTH www.cpSphere.com P: 1.562.860.8637 P: 1.310.645.0707
  • 3. … LOSING WEIGHT. Orange Office Los Angeles Office growth@cpsphere.com 17215 Studebaker Rd. Suite 390 Cerritos, CA 90703 5777 W. Century Blvd. Suite 1500 Los Angeles, CA 90045 PARTNERS IN SUSTAINABLE GROWTH www.cpSphere.com P: 1.562.860.8637 P: 1.310.645.0707
  • 4. The secret formula for losing weight is: EAT HEALTHY, EAT LESS, AND EXERCISE Orange Office Los Angeles Office growth@cpsphere.com 17215 Studebaker Rd. Suite 390 Cerritos, CA 90703 5777 W. Century Blvd. Suite 1500 Los Angeles, CA 90045 PARTNERS IN SUSTAINABLE GROWTH www.cpSphere.com P: 1.562.860.8637 P: 1.310.645.0707
  • 5. WHAT IS THE SECRET FORMULA FOR SMALL BUSINESS GROWTH? Orange Office Los Angeles Office growth@cpsphere.com 17215 Studebaker Rd. Suite 390 Cerritos, CA 90703 5777 W. Century Blvd. Suite 1500 Los Angeles, CA 90045 PARTNERS IN SUSTAINABLE GROWTH www.cpSphere.com P: 1.562.860.8637 P: 1.310.645.0707
  • 6. The secret formula to grow your business is: GENERATE DEMAND AND SERVICE IT PROFITABLY Orange Office Los Angeles Office growth@cpsphere.com 17215 Studebaker Rd. Suite 390 Cerritos, CA 90703 5777 W. Century Blvd. Suite 1500 Los Angeles, CA 90045 PARTNERS IN SUSTAINABLE GROWTH www.cpSphere.com P: 1.562.860.8637 P: 1.310.645.0707
  • 7. Quick Survey What does Growth Mean to You?  Increase in Sales / Revenue  Increase in Market Share  New Products  More Employees, Equipment, Plants  Mergers / Acquisitions  All of the above Orange Office Los Angeles Office growth@cpsphere.com 17215 Studebaker Rd. Suite 390 Cerritos, CA 90703 5777 W. Century Blvd. Suite 1500 Los Angeles, CA 90045 PARTNERS IN SUSTAINABLE GROWTH www.cpSphere.com P: 1.562.860.8637 P: 1.310.645.0707
  • 8. Real growth is: INCREASE IN THE CASH YOU KEEP = INCREASE IN PROFIT Orange Office Los Angeles Office growth@cpsphere.com 17215 Studebaker Rd. Suite 390 Cerritos, CA 90703 5777 W. Century Blvd. Suite 1500 Los Angeles, CA 90045 PARTNERS IN SUSTAINABLE GROWTH www.cpSphere.com P: 1.562.860.8637 P: 1.310.645.0707
  • 9. PROFIT = REVENUE – EXPENSES Orange Office Los Angeles Office growth@cpsphere.com 17215 Studebaker Rd. Suite 390 Cerritos, CA 90703 5777 W. Century Blvd. Suite 1500 Los Angeles, CA 90045 PARTNERS IN SUSTAINABLE GROWTH www.cpSphere.com P: 1.562.860.8637 P: 1.310.645.0707
  • 10. REAL = REVENUE – EXPENSES PROFIT INVESTMENT This formula is called Return on Invested Capital (ROIC) Orange Office Los Angeles Office growth@cpsphere.com 17215 Studebaker Rd. Suite 390 Cerritos, CA 90703 5777 W. Century Blvd. Suite 1500 Los Angeles, CA 90045 PARTNERS IN SUSTAINABLE GROWTH www.cpSphere.com P: 1.562.860.8637 P: 1.310.645.0707
  • 11. INCREASING PROFIT WHILE KEEPING INVESTMENT CONSTANT IS: THE HOLY GRAIL OF BUSINESS Orange Office Los Angeles Office growth@cpsphere.com 17215 Studebaker Rd. Suite 390 Cerritos, CA 90703 5777 W. Century Blvd. Suite 1500 Los Angeles, CA 90045 PARTNERS IN SUSTAINABLE GROWTH www.cpSphere.com P: 1.562.860.8637 P: 1.310.645.0707
  • 12. SO, LET’S START OUR QUEST FOR THE HOLY GRAIL WITH A STORY… Orange Office Los Angeles Office growth@cpsphere.com 17215 Studebaker Rd. Suite 390 Cerritos, CA 90703 5777 W. Century Blvd. Suite 1500 Los Angeles, CA 90045 PARTNERS IN SUSTAINABLE GROWTH www.cpSphere.com P: 1.562.860.8637 P: 1.310.645.0707
  • 13. This is the story of: MIKE, AN AMBITIOUS ENTREPRENEUR LIKE SIR RICHARD Orange Office Los Angeles Office growth@cpsphere.com 17215 Studebaker Rd. Suite 390 Cerritos, CA 90703 5777 W. Century Blvd. Suite 1500 Los Angeles, CA 90045 PARTNERS IN SUSTAINABLE GROWTH www.cpSphere.com P: 1.562.860.8637 P: 1.310.645.0707
  • 14. Mike’s business is: MIKE’S GREEN POWER INC PLUG INTO THE POWER OF THE SUN AND DISCOVER THE CLEAN BENEFITS Flash Light Battery Charger Everlite - Compact Solar Light Everlite - Mini Solar Light Headlamp Cell Phone Charger Orange Office Los Angeles Office growth@cpsphere.com 17215 Studebaker Rd. Suite 390 Cerritos, CA 90703 5777 W. Century Blvd. Suite 1500 Los Angeles, CA 90045 PARTNERS IN SUSTAINABLE GROWTH www.cpSphere.com P: 1.562.860.8637 P: 1.310.645.0707
  • 15. ONE DAY, MIKE GETS A CALL: “Mike, it’s Joe from cpSphere. How are you?” “Great, Joe, great.” Orange Office Los Angeles Office growth@cpsphere.com 17215 Studebaker Rd. Suite 390 Cerritos, CA 90703 5777 W. Century Blvd. Suite 1500 Los Angeles, CA 90045 PARTNERS IN SUSTAINABLE GROWTH www.cpSphere.com P: 1.562.860.8637 P: 1.310.645.0707
  • 16. Current Income Statement Revenue 5,000,000 100% Direct Costs 3,000,000 60% Gross Margin 2,000,000 40% Overhead 1,000,000 20% Profit 1,000,000 20% Last Year’s Profit: $800,000 Increase in Profit: 25% So, Mike’s business does look like it’s in great shape. But is it? Orange Office Los Angeles Office growth@cpsphere.com 17215 Studebaker Rd. Suite 390 Cerritos, CA 90703 5777 W. Century Blvd. Suite 1500 Los Angeles, CA 90045 PARTNERS IN SUSTAINABLE GROWTH www.cpSphere.com P: 1.562.860.8637 P: 1.310.645.0707
  • 17. Last year’s investment : $300,000 BUT: $300,000 GENERATED ONLY $200,000 IN INCREASED PROFIT Orange Office Los Angeles Office growth@cpsphere.com 17215 Studebaker Rd. Suite 390 Cerritos, CA 90703 5777 W. Century Blvd. Suite 1500 Los Angeles, CA 90045 PARTNERS IN SUSTAINABLE GROWTH www.cpSphere.com P: 1.562.860.8637 P: 1.310.645.0707
  • 18. PROFIT CENTER ANALYSIS Profit Center 1 Profit Center 2 Avg. Unit Price 30 20 Units Sold 60,000 60,000 Revenue 1,800,000 100% 1,200,000 100% Direct Costs 1,350,000 75% 450,000 37.5% Gross Margin 450,000 25% 750,000 62.5% Overhead 300,000 16.7% 300,000 25% Profit 150,000 8.3% 450,000 37.5% Orange Office Los Angeles Office growth@cpsphere.com 17215 Studebaker Rd. Suite 390 Cerritos, CA 90703 5777 W. Century Blvd. Suite 1500 Los Angeles, CA 90045 PARTNERS IN SUSTAINABLE GROWTH www.cpSphere.com P: 1.562.860.8637 P: 1.310.645.0707
  • 19. SEEK GOOD GROWTH & AVOID BAD GROWTH • Develop an effective way to model and test new products • Identify the best products and customers • Understand where to focus your efforts in sales, marketing, and investment Orange Office Los Angeles Office growth@cpsphere.com 17215 Studebaker Rd. Suite 390 Cerritos, CA 90703 5777 W. Century Blvd. Suite 1500 Los Angeles, CA 90045 PARTNERS IN SUSTAINABLE GROWTH www.cpSphere.com P: 1.562.860.8637 P: 1.310.645.0707
  • 20. …AND EXECUTE YOUR STRATEGY, BECAUSE, ACCORDING TO FORTUNE MAGAZINE: “ONLY 10% OF STRATEGIES ARE EXECUTED SUCCESSFULLY.” But Mike is different. He gets things done. He took his idea and really ran with it. Orange Office Los Angeles Office growth@cpsphere.com 17215 Studebaker Rd. Suite 390 Cerritos, CA 90703 5777 W. Century Blvd. Suite 1500 Los Angeles, CA 90045 PARTNERS IN SUSTAINABLE GROWTH www.cpSphere.com P: 1.562.860.8637 P: 1.310.645.0707
  • 21. Now, a few months have passed, and Mike has generated a noticeable increase in both his top line and profit, while keeping investment constant. But he has a problem, so he gives Joe a call: “MY PRODUCTS AREN’T SELLING IN HIGH END STORES!” Orange Office Los Angeles Office growth@cpsphere.com 17215 Studebaker Rd. Suite 390 Cerritos, CA 90703 5777 W. Century Blvd. Suite 1500 Los Angeles, CA 90045 PARTNERS IN SUSTAINABLE GROWTH www.cpSphere.com P: 1.562.860.8637 P: 1.310.645.0707
  • 22. Basic Pricing Structure 3 Elements Direct Cost $3 Overhead $1 Profit $1 SELLING PRICE $5 Other Pricing Considerations: • Customers • Distribution Channels • Competition • Internal Compatibility Orange Office Los Angeles Office growth@cpsphere.com 17215 Studebaker Rd. Suite 390 Cerritos, CA 90703 5777 W. Century Blvd. Suite 1500 Los Angeles, CA 90045 PARTNERS IN SUSTAINABLE GROWTH www.cpSphere.com P: 1.562.860.8637 P: 1.310.645.0707
  • 23. Price is a reflection of perceived value: DEFINE YOUR VALUE PROPOSITION, BUILD BRAND IDENTITY, AND INCREASE THE VALUE OF YOUR PRODUCTS / SERVICES Orange Office Los Angeles Office growth@cpsphere.com 17215 Studebaker Rd. Suite 390 Cerritos, CA 90703 5777 W. Century Blvd. Suite 1500 Los Angeles, CA 90045 PARTNERS IN SUSTAINABLE GROWTH www.cpSphere.com P: 1.562.860.8637 P: 1.310.645.0707
  • 24. A few more months have passed… SALES ARE DOWN! Orange Office Los Angeles Office growth@cpsphere.com 17215 Studebaker Rd. Suite 390 Cerritos, CA 90703 5777 W. Century Blvd. Suite 1500 Los Angeles, CA 90045 PARTNERS IN SUSTAINABLE GROWTH www.cpSphere.com P: 1.562.860.8637 P: 1.310.645.0707
  • 25. “So, Mike,” Joe asks: “Is your sales force focused on finding out what your company can do for its customers?” “ Are territories too big or too small?” “ If it’s organized now on a geographic basis, should your sales force be reconfigured by industry sector instead?” Orange Office Los Angeles Office growth@cpsphere.com 17215 Studebaker Rd. Suite 390 Cerritos, CA 90703 5777 W. Century Blvd. Suite 1500 Los Angeles, CA 90045 PARTNERS IN SUSTAINABLE GROWTH www.cpSphere.com P: 1.562.860.8637 P: 1.310.645.0707
  • 26. SALES FORCE ASSESSMENT TOOL Ranking Sales Commissions Salesperson (1 – 10) ($) ($) Orange Office Los Angeles Office growth@cpsphere.com 17215 Studebaker Rd. Suite 390 Cerritos, CA 90703 5777 W. Century Blvd. Suite 1500 Los Angeles, CA 90045 PARTNERS IN SUSTAINABLE GROWTH www.cpSphere.com P: 1.562.860.8637 P: 1.310.645.0707
  • 27. SALES FORCE ASSESSMENT TOOL Ranking Sales Commissions Salesperson (1 – 10) ($) ($) David 9 Steve 7 Craig 5 Jackie 4 Michael 3 Allison 2 Orange Office Los Angeles Office growth@cpsphere.com 17215 Studebaker Rd. Suite 390 Cerritos, CA 90703 5777 W. Century Blvd. Suite 1500 Los Angeles, CA 90045 PARTNERS IN SUSTAINABLE GROWTH www.cpSphere.com P: 1.562.860.8637 P: 1.310.645.0707
  • 28. SALES FORCE ASSESSMENT TOOL Ranking Sales Commissions Salesperson (1 – 10) ($) ($) David 9 900,000 Steve 7 700,000 Craig 5 500,000 Jackie 4 200,000 Michael 3 100,000 Allison 2 50,000 Sales people with a ranking of 5 and above can be trained to become superstars. So you should train them! Orange Office Los Angeles Office growth@cpsphere.com 17215 Studebaker Rd. Suite 390 Cerritos, CA 90703 5777 W. Century Blvd. Suite 1500 Los Angeles, CA 90045 PARTNERS IN SUSTAINABLE GROWTH www.cpSphere.com P: 1.562.860.8637 P: 1.310.645.0707
  • 29. A top notch sales team is a must for top line growth: IMPLEMENT A SALES PROCESS A well defined and well executed sales process will help you to create a steady revenue stream, and therefore, reliable sales forecasts, so that you can get out of fire fighting mode, plan the future intelligently, and operate profitably. Orange Office Los Angeles Office growth@cpsphere.com 17215 Studebaker Rd. Suite 390 Cerritos, CA 90703 5777 W. Century Blvd. Suite 1500 Los Angeles, CA 90045 PARTNERS IN SUSTAINABLE GROWTH www.cpSphere.com P: 1.562.860.8637 P: 1.310.645.0707
  • 30. CREATE A STRATEGIC GROWTH BUDGET • Send a clear signal to employees that you are committed to top line growth • Centralize and prioritize all growth activities • Measure results / return on investment Orange Office Los Angeles Office growth@cpsphere.com 17215 Studebaker Rd. Suite 390 Cerritos, CA 90703 5777 W. Century Blvd. Suite 1500 Los Angeles, CA 90045 PARTNERS IN SUSTAINABLE GROWTH www.cpSphere.com P: 1.562.860.8637 P: 1.310.645.0707
  • 31. FUND THE GROWTH BUDGET • Reduce expenses • Shift resources from shrinking products and markets • Reallocate budgets • Utilize outside financing Orange Office Los Angeles Office growth@cpsphere.com 17215 Studebaker Rd. Suite 390 Cerritos, CA 90703 5777 W. Century Blvd. Suite 1500 Los Angeles, CA 90045 PARTNERS IN SUSTAINABLE GROWTH www.cpSphere.com P: 1.562.860.8637 P: 1.310.645.0707
  • 32. Jose’s Quest is Over SO, WITH JOE’S ADVICE, MIKE FOUND THE HOLY GRAIL. He understood what were the most critical growth strategies and actions: • Create a focus • Define a clear value proposition for customers— and reflect it through branding and pricing • Build a top notch sales team • Implement a sales process • Create a growth budget • Avoid bad growth And he understood what growth really means: • Real profit (ROIC) Orange Office Los Angeles Office growth@cpsphere.com 17215 Studebaker Rd. Suite 390 Cerritos, CA 90703 5777 W. Century Blvd. Suite 1500 Los Angeles, CA 90045 PARTNERS IN SUSTAINABLE GROWTH www.cpSphere.com P: 1.562.860.8637 P: 1.310.645.0707
  • 33. YOU SEE, GROWING YOUR BUSINESS IS JUST LIKE LOSING WEIGHT. LOSING WEIGHT GROWING YOUR BUSINESS Select a healthy diet Find the opportunities, and focus Begin the right exercise program Define a custom growth plan Stick to it Execute AND WHAT’S THE BEST WAY TO LOSE WEIGHT? Orange Office Los Angeles Office growth@cpsphere.com 17215 Studebaker Rd. Suite 390 Cerritos, CA 90703 5777 W. Century Blvd. Suite 1500 Los Angeles, CA 90045 PARTNERS IN SUSTAINABLE GROWTH www.cpSphere.com P: 1.562.860.8637 P: 1.310.645.0707
  • 34. Weight Watchers is the most successful weight loss program: Their secret is social interaction. SO DON’T TRY TO GROW YOUR BUSINESS ALONE: YOU WILL HAVE A BETTER CHANCE OF SUCCESS WORKING WITH YOUR TEAM AND A TRUSTED ADVISOR. Orange Office Los Angeles Office growth@cpsphere.com 17215 Studebaker Rd. Suite 390 Cerritos, CA 90703 5777 W. Century Blvd. Suite 1500 Los Angeles, CA 90045 PARTNERS IN SUSTAINABLE GROWTH www.cpSphere.com P: 1.562.860.8637 P: 1.310.645.0707
  • 35. WOULD YOU LIKE TO DOUBLE YOUR SALES IN NEXT 4 MONTHS? Sign up for: 120 Days Business Growth Program GUARANTEED RESULTS! FEE: $2,500 + % of increase in sales Call: 1.310.645.0707 or Email: growth@cpsphere.com Orange Office Los Angeles Office growth@cpsphere.com 17215 Studebaker Rd. Suite 390 Cerritos, CA 90703 5777 W. Century Blvd. Suite 1500 Los Angeles, CA 90045 PARTNERS IN SUSTAINABLE GROWTH www.cpSphere.com P: 1.562.860.8637 P: 1.310.645.0707
  • 36. cpSphere has delivered an average 20% minimum bottom line improvement for our clients. cpSphere is the leading management consulting company working to create, deploy and execute growth strategies for small and Client Testimonials: mid size businesses. If you want quick results, combined with continuous improvement, cpSphere is definitely your partner for success. President. Food & Beverage Company I would recommend the personnel and the methodology of cpSphere to any business owner who wants to grow quickly and cost effectively. CEO Manufacturing Company Orange Office Los Angeles Office growth@cpsphere.com 17215 Studebaker Rd. Suite 390 Cerritos, CA 90703 5777 W. Century Blvd. Suite 1500 Los Angeles, CA 90045 PARTNERS IN SUSTAINABLE GROWTH www.cpSphere.com P: 1.562.860.8637 P: 1.310.645.0707