Business Growth Shawshank - Get Busy Living Or Get Busy Dying

INTRODUCTION:

I was watching a re-run of Shawshank Redemption the other night and the show's main character Andy Dufresne is told by Morgan Freeman to stop dreaming of getting out of his situation because it will never happen. Andy's response? "Well the way I see it is you can get busy living, or you can get busy dying."

As an advisor, this reminded me of the mindset as business owners we all should have.

In business then what sort of things should you doing actively to make a positive difference?  

Market in good times & in bad.

So often when things are good, businesses cut back on their advertising only to find that when things quieten down there is a mad rush to get marketing again often with limited budgets. What's worse is the lead time it takes to get some traction which could be 3-6 months. Consistency in effective marketing is crucial so that you are top of mind of your customers.

• Review what marketing you are doing (type and results);
• Establish a marketing budget (usually a percentage of revenue);
• Document a marketing plan;
• Ensure consistency in marketing by using  a calendar;
• Be disciplined;
• Measure leads & conversion rates to sales.

What is working & what needs to change?

Do an analysis of your business for your product cycle from marketing to completion of the sale. Work out what is going well & what isn't. It could be customer service, employment issues, product quality etc. Brainstorm a way to address that issue & focus until it's fixed.

• Break your business down into segments (marketing, sales, product, delivery etc);
• Which areas need improvement;
• List actions to effect change;
• Follow through until complete!

What sets you aside from your competition?

Be very aware of what your competitors are doing & find a way to offer something different your customers would find valuable. If you don't do this exercise you will invariably finding yourself competing on price. Get on the phone & talk to your customers by finding out what it is they would love about your business & what they'd to see. You might not be able to give them everything they want but they might just give you an idea that will not only keep them but attract you more customers who can't get what they want from your competition.

• List your main competitors;
• What do you do differently to them & vice-versa;
• Ask your customers what they want;
• Offer something new & communicate to the marketplace.

What trends are occurring in your industry or profession?

You need to get business intelligence as to where your space is heading. This can be done via research from business associations, conferences or market research reports from companies such as IbisWorld which most good business advisors would have access to.

• Join a business association;
• Go to a industry conference;
• Get market research reports;
• Focus change as needed.

Know Your Numbers

I can't stress enough how important this is. Our best clients know exactly where they are and actively seek to get their financials and tax returns done in early July each year. They know what their targets are and review figures almost daily.

• Review the accounting services you currently receive;
• Have a solid accounting software system (consider cloud accounting);
• Formulate a 3 way budget (includes cash flow budget);
• Get advice from your business advisor/accountant;
• Produce financial reports religiously each month;
• Get tax planning done each year

CONCLUSION:

Most of us want business growth. If we don't, chances are we will stagnate and experience contraction if we don't get busy working ON the business. As Andy says we have a choice to get busy living or get busy dying.

Which one do you choose?