The Money Podcast
Want More Money Without Working More? Then You need S.P.A
Wednesday, 10 April
How to Scale Up Your Business? (LIVE)
Scaling up your business can be both difficult, scary and chaotic for business owners. Businesses often have their most challenges when they are faced with moving from a start-up company to a more mature business. There are things you can do to help your business grow however, plan for the breakage and make sure you have sustainable growth. As part of the Business coaching programme Rob talks through various ways you can scale up your business. Ensuring that you have an elegant business model, enough cash to fuel growth and multiple sources of leads are all essential for scaling your company. If you want to learn how to scale your business today this is the podcast for you.
Going from Local, National, to Global. This might mean opening new offices around the country or even wider around the world. It might mean moving your business online and growing globally digitally. We’ve resisted pushing for global growth initially focusing on the national. We have decided to move from the national to global now however. We initially just started in Peterborough. Make sure you don’t scale up too fast however as the one area will drain money from another.
The Elegant Business Model. This is where you have a staircase of products for your customers. So in my case I give away lots of free content at the top, and then I have low cost products such as my 99p Kindle books. This means that you are trusted in the market and you’re reducing the friction to sales. Then I might you to an even, which are more expensive, then to courses and finally it might be a mastermind which is the most expensive product. We have around £200,000 worth of products that we sell but we don’t do it all at once.
Cash Fuels Growth. You might be reinvesting into the business or you might be looking for venture capital. A lot of businesses don’t invest in marketing, but you should be spending sensibly and strategically in marketing as an investment in your future. You should be testing your marketing, and working out what works in your marketing. You have to learn before you can earn. Be careful when you are raising capital, people tend to be more frivolous with spending the money that they haven’t directly earned. Creativity, collaboration, join ventures and innovation fuels growth it doesn’t always have to be cash that fuels it.
Marketing. Marketing. Marketing. The reality is marketing gets people into the shop and sales facilitates the purchase when you are in the shop. You have to make sure that you have multiple streams of leads. It’s important to not rely on one form of marketing because things could change, and that could be the end of your business.
Multiple sources of leads. This will mean that you will get multiple sources of income. You have to get the balance right between having multiple streams and getting the depth right. Make sure that you are tweaking some, having some that are in testing phase and some which are fully formed. So you have a conveyor belt of different marketing in the pipeline. Then before you know it you will have 80 streams of income.
The faster you grow the more breakage there will be. You can plan for this by systemising and planning in advance. Reputation issues, admin and people issues can be bigger when you grow quickly. If you grow steadily then it might be easier to manage but if you have no breakage you are not growing quickly enough. You have to make sure that your staff are going with you in your growth. If you scale your staff and systems up for the next round of growth before you get there then there will be less breakage
Partnerships, collaboration and joint ventures. A way to scale up quickly is to make sure that you have the right collaborations in place. There are lots of examples of joint ventures between different companies. Virgin does this alot with a lot of different companies to create new companies. You could set up an affiliate or ambassador programme.
Building Multiple Assets. If you have an office, or a book, or your web presence they are all assets. Building up online assets means you will have recurring income, multiple leads and multiple streams of income. I have recently gone past the million pound sales for my books. You have to invest in these assets, it’s better to invest in these rather than an hourly rate.
Direct Response, Brand Marketing. Direct response is more transactional, whereas brand marketing is around the visuals of you brand. How when you think of a fizzy drink you think of Coca-cola? Direct responses allow you to track more effectively the sales from your business. It’s best to start with direct responses and then once you have a bigger marketing budget you move onto brand marketing.
‘The growth of a business brings challenges and opportunity’
‘The elegant business model takes people on a journey.’
‘The Elegant business model allows for a staircase of products that your customers can purchase’
‘A lot of businesses don’t invest in marketing which is an error.’
‘We reinvest around 50% of our profits back into the business from retained earnings.’
‘Marketing is essential for getting people into the shop.’
‘Cash isn’t the only thing that fuels growth but it’s an important one.’
‘Multiple sources of leads are essential.’
‘You have to learn before you can earn.’
‘You can a great game plan until you get punched in the face.’
‘Have a rolling recruitment cycle so you aren’t waiting for people.’
‘You can have breakage or wastage not both.’
‘The more you scale up the more demand for staff you will have.’
``Multi-media is using all the different platforms out there as much as possible.’
‘Make sure you are not using single media.’
‘We are now as much a media agency as we are a property business.’
‘With partnerships you get a leveraged effect.’
‘These all create trickle down money.’
‘If you are too aggressive with your sales you will have an attrition rate.’
‘Direct response allows you to track sales better.
The Disruptive Entrepreneur Podcast iTunes | Stitcher
Books Written by Rob Moore:https://robmoore.com/books/
ABOUT THE HOST
Rob Moore is an author of 9 business books, 5 UK bestsellers, holds 3 world records for public speaking, entrepreneur, property investor and property educator. Author of global bestseller “Life Leverage” Host of UK’s No.1 business podcast “The Disruptive Entrepreneur”
“If you don't risk anything, you risk everything.”
See omnystudio.com/listener for privacy information.