Business Insight #1 Jim Henderson, Shirlaws Group Why bother growing your business? What does growth look and feel like for you and your business? A different approach to growth planning

1. The Business Journey
The Business Journey
25 April 2017

2. The Business Journey
Jim Henderson

3. The Business Journey
“The Business of Growth”
25th April 2017

4. Agenda – Approach to Growth
• Why ?
 Why bother ?
 Why now – timing ?
• What ?
 What does growth look like ?
 What’s stopping you?
• How ?
 Introduction to Growth Strategy
 Introduction to Capacity

5. Agenda – Approach to Growth
• Why ?
 Why bother ?
 Why now – timing ?
• What ?
 What does growth look like ?
 What’s stopping you?
• How ?
 Introduction to Growth Strategy
 Introduction to Capacity

6. FTSE 100 – Trend 1 Year Back to Date
Brexit Vote
23rd June 2016

7. Agenda – Approach to Growth
• Why ?
 Why bother ?
 Why now – timing ?
• What ?
 What does growth look like ?
 What’s stopping you?
• How ?
 Introduction to Growth Strategy
 Introduction to Capacity

8. What Does Growth Look Like?
120k
240k
400k
600k
80k
750k

9. What’s Stopping You ?
Fears & Benefits

10. Your Choice to Grow
Opportunity or Armageddon ?
How’s your mind-set? (Hold back or get on with it?)
Challenge what beliefs do you hold?
Those showing courage, confidence and innovation, always
win in times of great change

11. Agenda – Approach to Growth
• Why ?
 Why bother ?
 Why now – timing ?
• What ?
 What does growth look like ?
 What’s stopping you?
• How ?
 Introduction to Capacity
 Introduction to Growth Strategy

12. Capacity
Capacity is the maximum
revenue achievable given
available resources today
Maximum

13. Run Rate
80% realistic capacity
40%
EffectiveOperatingZone
100%

14. Platform Strategy

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Growth Strategy

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Choice
Strategically there are only 2 things you can do with a business:
• Fill up the cup = Platform
• Get a bigger cup = Growth

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Controlled Growth

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Platform Strategies
(fill the existing cup with more revenue)
• Staff Training
• Product Training
• New database
• Management Systems
• Marketing plan
• Functional Structure
• Workflows – no bottlenecks

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Growth Strategies
(change the size existing cup to create more capacity to earn more revenue)

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Capacity Summary
• Most businesses focus on turnover rather than capacity
• Turnover on its own tells you nothing
• Turnover in context of capacity tells you a lot
• Businesses who have increased their turnover but increased
their inefficiency (e.g. 40% run rate), end up stressed
• Capacity planning gets you clear about how to grow

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Capacity Summary continued…
• Be aware of your Capacity and Run Rate Numbers
• Use those numbers to create a controlled growth plan
• Identify platform (and growth) strategies
• Businesses grow in cycles and work in ranges
• Businesses can get stuck in a range which is normal
• Income follows assets (invest first)

22. 26 April, 2017
Next Steps
Jim Henderson– Shirlaws Group
E: jim.henderson@shirlawsgroup.com
M: 07817 745958

23. The Business Journey
Questions?

24. The Business Journey
5 September
7 November
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