Posted on 18/06/2015, 14:27
You want to grow your business; but how? Many businesses first though is diversification; develop new markets or introduce new products and services without first maximising the opportunity in their core business.
What is your core business? The business(es) which represents most of your profits today! And it probably represents your best option for growth. It is represented by the market penetration strategy shown in the ANSOFF matrix above; working smarter with your existing products and services in your existing markets!
5 Incremental Changes to drive Your Core Business:
There are 5 key incremental activities that can drive significant sales and profit growth; increasing the number of leads, improving your conversion rate, growing your average order value, delivering more transactions per customer and driving gross margin. 10% improvement in each delivers a 46% increase in sales and 61% increase in profitability; not bad for 5 incremental improvements!
A former chairman of mine used to refer to this (and similar initiatives as “squeezing the lemon”
Looking at Adjacencies beyond the Core:
When you have squeezed the core, you can begin to look beyond at areas that are adjacent to your core business; new geographies, new products, new markets, new technology etc.
Beware; there are a number of pitfalls when looking beyond the core and remember that opportunities lying closest to your core business represent the least risk.
What are the pitfalls?
In or last article, “Measuring What’s Important” we discussed key performance indicators or KPIs. There are lagging KPIs such as financial measures that tell you what just happened and leading KPIs that indicate what your financials are likely to look like.Read More
Following on from our previous blog in this series, “The Most Important Thing”, the next step is to translate your goals into action. For this, setting your targets and measuring your performance against them is vital to making them happen.Read More
What do you want to achieve in your business? Every owner manager had their reasons for why they started out on that journey – what are yours? And more importantly, are they still valid, are you on track, or are your hopes and desires being frustrated?Read More