business black holes
TRANSCRIPT
@TheBusJourney #SMEJourney
The Business Journey16 February 2016
@TheBusJourney #SMEJourney
Business Journey Partners
@TheBusJourney #SMEJourney
Jim Henderson
The Business Journey
“Black Holes”16th February 2016
Outcomes
• Awareness & understanding around black holes• Introduction to Growth Strategy – “Jump”• Introduction to Capacity – Controlled Growth• What’s my number?
Exercise
The Investors’ Viewpoint
GrowthThis contextually is a growth curve, not revenue
It represents grow, then invest, grow then invest.
2 Black Holes, 4 Cycles of Growth
2 Black Holes,4 Cycles of Growth
£80K
120K
240K
600K
400K
£750K
1.2m
£750K
£17m
24m2 Black Holes,4 Cycles of Growth
JUMP – Black Holes
£80K
£750K
£17m
£170m
£700m
£4bn
£14bn
Black Hole
• All businesses go through predictable stall points – what we’re calling ‘black holes’ because businesses can disappear into them for many years
• Most black holes are due to insufficiencies in the underlying organisational structure
• Avoiding black holes requires structural changes which when complete allows increased revenues
Growth - Grow Revenues AND Build Infrastructure
Black Hole Reach
Black holes have a radius around them and suck everything in their path e.g. from 600k onwards you feel the effects of the black hole and it is hard to escape from 750k to 1.2m
Capacity
Capacity is the maximum revenue achievable in your business, given available resources today
Capacity
Capacity
More Capacity to Earn More Revenue
Controlled Growth
Next Steps – Strategic Growth Questions
• Why grow my business?• Why now?• What does Growth look like for my business?• What’s stopping us?• What’s the strategy?• How much are we going to invest?
Income Follows Investment
Income Follows Assets
Confidence to Change Courage to Invest Freedom to Choose
Shirlaws GroupSupporting private enterprise on their business journey to…
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Jim Henderson Questions?