How do they grow so successfully?

Most business owners find creating a valuable business elusive.

Six proven growth strategies that will help you build a business worth $3m+

Contrary to a lot of talk out there most businesses enjoy a reasonable level of success. This is largely because the owner is good at what they do. However this only gets you to a certain point, usually somewhere below $1m in value. Taking a business from this point to one of significant value is hard work, that’s why less than 20% of operators achieve it. Most business owners continue to find creating a valuable business very elusive.

Lets take a closer look at 6 proven growth strategies that generate growth AND value to $3m and beyond.

Strategy 1 – Optimise your business model

The first rule to understand when choosing business is that like horses in a race, not all businesses are equal. Riding Black Caviar in a race is much easier to win than if you are riding some distant outsider. There are specific things a trainer looks for in a horse – it’s the same in business. We have covered in other articles the 9 Critical Success Factors your business needs to have. It’s important to ensure your business has all these factors from the start. This is easily validated by preparing a 5 year dynamic business model that examines the key success attributes and determines if the outcome is going to be real wealth creation.  Simply look at the profit, valuation and cash requirements of the business out 5 years  – are the results what you want?

Strategy 2 – Copy and add a twist

In other words, don’t re-invent the wheel. You don’t always need to come up with a great or new idea. Don’t be ashamed to copy success. Many of the best brands copied a concept and improved it by 5% – Apple, Microsoft and Toyota are examples of this. Just execute better in a proven niche with a unique twist. The results can be staggering.

Strategy 3 – Do the things successful people do in your industry

Sounds simple but most people don’t do this. Find out what successful people and businesses do and copy them. The key phrase to remember is this – if you want to be a large, successful and profitable business worth $3m+, act like one and do what they do.

Strategy 4 – Create Leverage and Scalability via Systems

It’s not possible to create significant wealth without leverage and scalability  – there is only so much time a business owner has to devote to their business. The most effective way to create leverage is by automating processes via systems, hiring good people and outsourcing to experts. There are 3 types of systems – operational, marketing and finance/transactional. All are important. Marketing systems are important for growth, operational and finance systems are important for scalability, which delivers profitable growth. The good news today is that there is a wide range of inexpensive systems available that assist in all of these areas.

Strategy 5 – Utilise experts to get there quicker

Silicon Valley is an example of the most successful community that repeatedly and consistently creates businesses worth significant sums. Silicon Valley companies on average have 4 advisers. They understand the value of utilizing advisors to get there quicker. Conversely, Australians have an aversion to using experts and average less than 1 per company. This scenario presents an opportunity to gain a competitive advantage in Australia. The key though, is using experts with a proven track record, either in their field as a subject matter expert, or for general business advisors they need to prove they have done before what your trying to do now. If you then work alongside the right adviser they become worth their weight in gold.

Strategy 6 – Chunk it down to actions

How do you swallow an elephant – one bite at a time. Often the highway to success is daunting and sometimes even overwhelming.  The need to break things down into bite size pieces or chunks is the most effective way to deal with the list of challenges. Rolling 90 day plans are a proven disciplined way to drive action and results while maintaining momentum and focus.  The power of clear succinct, short term goals, and the power of being held accountable to someone makes a massive difference to delivering on profitable growth.