pre requisites of business growth
Post on 21-Nov-2014
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Page 2
HOMEWORK FOR FUTURE
REALIZING THE
PRESENT
ANALYSIS OF PAST
Improvement Drivers
Page 3
Agenda
Do we all want growth in company…
Are we ready for the change…
What my company going to achieve…
How my individual responsibility contributes to corporate agenda…
Page 4
Questions to Answer
1. Do we really have attained successful business model?
2. Are we getting repeat business?
3. Does our margins are in line with industry (rather should be better)?
4. What is our Market Share & how to increase it?
5. Do we really have a performing team?
6. Does our organisation possess required leadership skills?
7. Do we have open mind set for innovation & growth?
8. Does financial crunch crossing our Way?
9. Does our control systems working properly
Page 5
Successful Business Model
Page 6
Successful Business Model
Pricing Model
Formula for Pricing should be fixed and tested over time for provision of value at that level of price.
Revenue Model
Persons who has to pay how to pay and on what event to pay a detailed description with all possible exceptions has to be finalized.
Operational Process Model
Raw Material Sources, Bill of Materials, Manufacturing Process, Packing Material & Delivery including Time chart & Cost analysis has to be crystallized.
Sales & Distribution Model
Model of distribution has to be finalized like, Distributors Contract, logistic contracts etc.
Page 7
Successful Business Model
Value Propositions
Comparative analysis from competitor product has also to be analysed for value analysis by customer and decide its own unique proposition. For example:
Lesser value at lesser cost
Much greater Value at higher cost
Higher value at same cost
Strategic Relations
How associates, dealers, commission agent & consumers are to be managed and how this value network to be handled, needs to be crystallized.
Page 8
Business Model should…
Offer Unique Value
By creating a different offer on basic concept, idea, combination, features etc.
Hard to copy
A winning business model must be giving some added advantage to the company that cannot be easily imitated.
Accurate Assumptions
Expected outcomes must be near to ground realities about everything like, cost structures, revenue streams or customer behaviour etc.
Detailed & Written
An effective business model should be rich and detailed and the components must reinforce each other.
Page 9
“If we don’t know well that why your customers prefer us, we don’t understand our business. Any small change in any single component makes a different model.”
Page 10
Discussion
Action Points
What Changes required
Page 11
Repeat Business
Page 12
Repeat Business
Mark first impression
Spend for after-sales support
Keep customers’ details safe & use as appropriate
Build Relationship
Special offers
Special Moments
Increase Business Profile (Website, Newsletter, SEO, SMO)
Re-evaluate our strategies
Page 13
“Not getting the repeatbusiness is just liketrying to fill water intopot with hole on base. Ifwe do not feel theimportance of repeatcustomers in ourbusinesses; and we arenot doing something togain trust of customers;we should not evendream of growth inbusiness.”
Page 14
Discussion
Action Points
What Changes required
Page 15
Margins in line with Industry
Page 16
Margins in line with Industry…
Control Production Cost
Investment in Technology
Differentiate our business
Avail maximum cash discounts
Avoid theft
Gross margin monitoring
Page 17
Margins in line with Industry…
Categorical margin Analysis
Price Revision
Stratify the prices
Scrutinize bills
Inventory Accounting
Page 18
“If situation of lowmargin and high risk,continues for sometimes in the businessand emergencysituation like cashcrunch, pricefluctuation etc. arisesand businessbecomes unable torespond strongly, youmay run out ofBusiness.”
Page 19
Discussion
Action Points
What Changes required
Page 20
Increase Market Share…
Page 21
Increase Market Share…
Anticipate the future
Sell more to existing customers
Get old customers back
Market effectively
Selling more overseas
Tap the competitors’ customers
Page 22
“Without knowing itsown market segmentand having its ownmarket share, it’s notworth taking effortsfor start of growthjourney. It is simplybecause finding thetarget where to hit ispre-requisite beforeyou pull the bow.”
Page 23
Discussion
Action Points
What Changes required
Page 24
A Performing Team
Page 25
A Performing Team
“To start the growth voyage a business must be having a
good & selective team that works reasonably well, for
on-going projects. If company is in the process of trial
and error of different team combinations, then how the
company can focus on its growth agenda. It’s worthless
to work upon the growth strategy before you form a
worthy executive team which is ready to perform.”
Page 26
A Performing Team
“Any successful entrepreneur; invariably opine that alarge part of their success is due to their efficient &performing team”.
“The business team must be fixed up with rightpeople on board up to the middle level managers.Success of any strategic plan is largely depends onhow the middle level managers execute the plan,policies & procedures”
Page 27
A Performing Team
“Most of the time employees leave the job notbecause of things like ownership or benefits or pay.Rather, they leave such jobs due to the lack ofeffectiveness of the company’s middle managers”.
When a quick decision needs to be made andimplemented. Only they are the resources who are indirect touch of all man power of the organisation
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Making of a Performing Team
Communicate Expectations
Explain them Context
Attain Commitment
Make Competent Team
Team Planning
Leadership within the team
Page 29
Making of a Performing Team
Collaboration Process
Flawless Communication
Innovation
Accountability
Coordination between teams
Cultural Development
Page 30
Our company must be out of the “drama level” phase. If our managers spend more than 15 minutes per day putting out employee-related fires, something needs to change.
Page 31
Discussion
Action Points
What Changes required
Page 32
Leadership
Page 33
Strategic Planning
Organisational Structure
Organisational Culture
Basic Systems & Procedures
Checks &Controls
Vision in sync with the market
Leadership
Page 34
Watch the indicators
Think Big but be on Ground
Recruit Talent
Constantly assess risk
Plan for Future & Start Preparation from Today
Implementing the plans
Leadership
Page 35
Discussion
Action Points
What Changes required
Page 36
Innovation & Growth
Page 37
“We cannot attain our growth targets with a closed mind set team. In short our top executive team should work with open mind-set.
Page 38
Discussion
Action Points
What Changes required
Page 39
Financial Crunch
Page 40
Financial Crunch…
Ask for advance Payment
Monitor receivables diligently
Monitor budgeted cash flow regularly
Offer a discount for overdue receivables & early payments
Accelerate your invoicing
Cut expenses
Make the improvement a mission
Page 41
“Actually growth expenses always climb before the growth revenue. But where do we
find the money? Unless & until we are offloaded from short term crunches and
bagging a good positive cash flow for investments it’s not possible to start our growth
journey.”
Page 42
Discussion
Action Points
What Changes required
Page 43
Control Systems
Page 44
Organization’s Objectives are primary motto
Determining Roles and Responsibilities
Foster Enthusiastic Attitude
Link with Individual Performance
Ensure Competency
Risk Control
Communicate Regularly
Monitoring and Assessments
Transparency and Accountability
Control System…
Page 45
“Right kind of internal controls enables
an organization to capitalize on
opportunities and offsetting the threats.
Actually these controls save time and
money, and promote the creation and
preservation of value. Without proper
controls and monitoring system, no
growth strategy can work effectively for
the organisational success.”
Page 46
Discussion
Action Points
What Changes required
Page 47
Next Review…………
Page 48
CA Hemant Gupta
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