pre requisites of business growth

HOMEWORK FOR FUTURE

REALIZING THE

PRESENT

ANALYSIS OF PAST

Improvement Drivers

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…

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

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.


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.

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.

“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.”

Discussion

Action Points

What Changes required

Repeat Business

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

“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.”

Discussion

Action Points


Margins in line with Industry

Margins in line with Industry…

Control Production Cost

Investment in Technology

Differentiate our business

Avail maximum cash discounts

Avoid theft

Gross margin monitoring

Margins in line with Industry…

Categorical margin Analysis

Price Revision

Stratify the prices

Scrutinize bills

Inventory Accounting

“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.”

Discussion

Action Points


Increase Market Share…

Increase Market Share…

Anticipate the future

Sell more to existing customers

Get old customers back

Market effectively

Selling more overseas

Tap the competitors’ customers

“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.”

Discussion

Action Points


A Performing Team

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.”

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”

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

Making of a Performing Team

Communicate Expectations

Explain them Context

Attain Commitment

Make Competent Team

Team Planning

Leadership within the team

Making of a Performing Team

Collaboration Process

Flawless Communication

Innovation

Accountability

Coordination between teams

Cultural Development

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.

Discussion

Action Points


Leadership

Strategic Planning

Organisational Structure

Organisational Culture

Basic Systems & Procedures

Checks &Controls

Vision in sync with the market

Leadership

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

Discussion

Action Points


Innovation & Growth

“We cannot attain our growth targets with a closed mind set team. In short our top executive team should work with open mind-set.

Discussion

Action Points


Financial Crunch

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

“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.”

Discussion

Action Points


Control Systems

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…

“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.”

Discussion

Action Points


Next Review…………

CA Hemant Gupta