The weird and wonderful creations of everyone I have dealt with in the past have all had to go through a process of being nothing but a thought to being something real and tangible that can scale and become profitable.
I love the wacky ideas, the ones that are very different but these, however fun they might be to think about, need to be commercially viable and the backbone needs to be sturdy enough to handle the growth and volume that you expect to see from a good business.
You could have a great idea that people off the bat will buy into and maybe they will tell some friends but you want to have an idea that gets people excited, something that will get them telling all their friends about and you want them to be coming back to you over and over again to buy more and more and more….
Now, once you have that you need to start thinking long term, you want to create a system. Every business needs to have a systemised model to operate the business smoothly and to also predict your results for you down the line.
But what do I mean by that?
Too many business owners choose to keep their ideas to themselves but if something were to happen to the owner the business would simply cease trading. The day to day standard activities of the business needs to be on paper and you need to share these processes and ideas with a team.
There are other great advantages to doing this such as you can take a holiday and the business will still trade, your team can add value by contributing ideas to yours and you can build a model you can sell I the future.
If you have systems in place it means that all of your customers receive the same standard of business every time they come back to you.
It means that your customer’s friends come to see you and in turn get the same level of service that their friend promised them and they come back. It means that you can teach anyone to do it for you. That means you can focus on your job as a director and continue growing the business in other areas.
2. Get the Numbers Right
Can you tell me how many people you need to speak to before you can present your product to one? How many presentations do you need to do before you get a same? How many sales do you need in order to be profitable?
Can you discount your services? You need to have your numbers right and planned out with your goals set from the beginning so you know what you need to do to achieve what you need.
Once you have got to the bottom of your numbers you can then set out your map to discover what you need to do in order to grow the business. You should introduce things like sales scripts and processes for people to follow that way you can track your law of averages more efficiently.
You must code into your business from day one how you will grow the business. Where is your target market, who is your target customer and how are you going to get in front of them.
For some people reading this you may say that you are a stay at home consultant that doesn’t need to expand and you are happy where you are. That’s great and I’m happy for you but what happens when you lose a customer?
What happens when your car needs renewed and you don’t have enough money? Have a plan is all I’m saying, put it on paper and develop it. It’s easy to digress and sometimes it’s good to go back to basics and remember what you set out to do.
Businesses don’t fail because they don’t have enough money; they fail because they don’t have a great idea. Having a good idea is wonderful but having a good idea that is commercially scalable is the difference between having money in the bank and not.
- Photo credit: smartphotostock.com
Jason Crispin is the founder of Rising Power and Editor of Rising Power’s Blog, a business focused on helping small businesses exceed their potentials. Follow them on Facebook and Twitter to learn more.