5.15.80: BREAKOUT TO SUSTAIN - WILLIAM EASTMAN

PROFIT RADIO - "A Network of Entrepreneurs for Entrepreneurs"

Introduction
Here we are at the beginning of 2021 and hoping to put 2020 behind us. Unless you were one of the lucky owners who had the right offer at the right time, the majority of entrepreneurs took a big hit last year. It is forecasted that business revenues for 2020 is 1/3 of 2019! How many owners do you know that are already out of business?

This series of shows are not about good news. We are very pessimistic about the immediate future - the next 6 months. That emotion is based on the arbitrary nature of global lockdowns. In fact we address that in our Thursday show: "Beating The Lockdown ...While You Still Have A Future".

This season we will share 4 decades of experience on the 3 Types of Businesses, based on performance, and what you can do about it. Today's show is about refusing to let forces outside of your company put you out of business.

LISTEN > ENGAGE > APPLY

Show Objectives
Let's start this at the beginning. When we were doing our initial research in the early 2000's on fast and sustainable growth from cash flow, we developed a model for evaluating businesses. It was based on on it's performance relative to it's capability. In other words what were they doing with what they had.

Once the model was complete we built a consulting practice around it and the first phase was to validate our research. Part of that process was to review research on the same topic from other credible organizations. That is when we started a relationship with the Kauffman Foundation. One project they had just finished for a group of local governments was on the types of successful small businesses to attract with grants, tax abatements, etc. These were small, fast growing companies that would provide a solid tax base and jobs.

The study called those companies HIF's (High Impact Firms) and how critical to a healthy economy they were because of creating 95% of new jobs. The further challenge of attracting them was they represented only 5% of all small businesses. We took that research and compared it to our Library of Best Practices for Fast Growth Companies, creating the 5.15.80 Performance Model. The top 5% dominate their markets and their core concern is SUSTAINING success – to a Break Out through a major reinvention.

The middle 15% represent firms doing OK but unsure about how to take the company to the next level. Their core concern is how to Break Through.

The remaining 80% represents businesses that are struggling to compete in the current environment, they are one or two moves away from disaster. Their focus is how to Reset the business and fight another day. Their core concern is how to consistently achieve BREAKEVEN.

Our concern in this series is the 5%, not how you get here covered in the 15% and 80% series; the focus is how to maintain market leadership.
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Key Issues - Owner Perspective:

1. Where is my company?
2. How do I take it to the next level or sustain it?
3. How to use IBGR to help get it done?

What You Need to Know
​Leadership's Focus on Resources

• Sales focus on Business Development – achieving 100% of client spend on comparable products & services;
• Marketing Spend = 10 - 15% of revenue per year to build brand presence and reduce cold calling;
• Greater specialization instead of new product development -  narrow focus on micro-segmenting (minor differences from client to client) existing products and services instead of broadening presence into new markets. 

Leadership's Focus on Strategies

• All elements of the customers experience are very distinctive and unique - stand alone branding by company, executives / owners as Thought Leaders, and products, and services;
• Narrow focus on target accounts - define your offer within clients by the value provided;
• Development of specialized services - build it for them first, then generalize into adjacent markets;
• Use of marketing partnerships - lever the reach of your customers and suppliers. 

Leadership's Focus on Clients

• Specific and detailed descriptions of core clients – market research into why are your best accounts your best accounts;
• 31% increased growth rate and 20% increase in profits from research - understand before you build, never build on spec, always co-develop with customers and suppliers.

Marketing and Sales

• Leveraging Face-to-Face Contacts:
  • Partnering instead of Formal Distributorships;
  • Websites instead of Conferences & Trade Shows;
  • Referrals instead of Networking;
  • Use of outside experts instead of cold calling;
  • Sales training of non-sales staff instead of spending on Print Ads.

What You Need to Do

1. Follow the 5.15.80 Series all season.​
2. Get your business growth news everyday from IBGR.Network
3. JOIN the IBGR Community
4. DOWNLOAD the IBGR Growth App
5. RESEARCH anything related to Starting, growing, or Exiting a business on the IBGR Network

We are your single, one stop source for business success, period, end of story.

Make sure you leave some thoughts in the comment section below. I am interested in continuing the conversation.