5.15.80 THE ELITE 5%: BREAKOUT WITH IBGR

We have covered a lot since the beginning of Season 4. This entire series, not just the Elite 5%, also the Uncertain 15% and the Underperforming Many are all part of the same process - taking a company from almost failure to market domination.

The entire series is based on my 'notebook' on doing business turnarounds and the three groupings of 5%, 15%, 80% represents an accurate distribution of where small business are operating today.

What does that mean?

5% of small businesses today globally or locally dominate their markets, have great revenue and margin numbers; in a word very profitable.

15% of small business today have achieved breakeven plus sand are doing good, not great. The have reached sufficient and predictable cash flow. What is the problem? Some of the owners of businesses at this level are not satisfied with being a second tier company, they seek market leadership and then domination like the 5%.

​The remaining 80% represents startups, zombie's, and companies hammered by the pandemic. They are barely hanging on, if that, and are desperate to achieve breakeven and join the 15%.

Even is one more factoid that should answer any remaining questions about why being the 5% is the only place to be:

• 95% of profit in a market is earned by the top 20%. 
• The Elite 5% and the Uncertain Few 15% represent 95% of the profits generated. The remaining 5% of profit is earned by the remaining 80%!

This is why said in the first show "Be Here or Be Nowhere"

During this series we introduced the 9 Disciplines of Successful Turnarounds; how to take a dying business and sell it for top dollar.

The Elite - 5%

• Discipline 9 Co-Develop Processes, Products, Services
• Discipline 8: Future Competitive Advantage
• Discipline 7: Maximize Profits

The Uncertain Few - 15%

• Discipline 6: Aggressive Marketing & Sales
• Discipline 5: Narrowcast Your Offer
• Discipline 4: Market Penetration & Positioning

The Underperforming Many - 80%

• Discipline 3: Professionalize Leadership & Management
• Discipline 2: Distinctify Your Offer
• Discipline 1: Processes Under Control

​
Season 5: Create The Future
​IBGR Network is focused on Disciple 4. Yes we are in the 15% and achieved sufficient and predictable cash flow after 11 months of broadcasting.

What does that mean for you - the IBGR audience?

We have been reviewing our economic models & shows (Economics for Owners) and believe the globally economy is within 12 months of a downturn in the business cycle. This will occur just as most of the pandemic rules are loosened so any gains possible will be negated by a reduction in demand. Best case there will be a very low growth expansion, the worst case is a major recession.

As we have worked on developing an accurate and positive theme for Season 5, hasn't been easy so far, perhaps Create The Future is not as accurate and pithy as desired.

Here is what I can say about Season 5. IBGR is going to the next level of execution on our plan to combine 3 different businesses together into something that transforms global business with more end users.

Look for more this week on Season 5 starting with tomorrow's show on the Uncertain Few - the 15%.

It is an exciting time to own a business and unwilling to give in.
​bill