stages of development - International Business Growth Radio Network

HOW TO HANDLE GROWING PAINS WITH SCENARIO PLANNING - Celia L. Powell

7/12/2020

Celia L. Powell - "By the Numbers"

PROFIT RADIO..."Let's Grow Together

Introduction
There are three more weeks of shows left - 010 through 013 before the next season! We are lining up new talent to bring more voices of business substance to our platform here at IBGR.Network! We are more than a radio station we are a network, with a growing business community, that is truly about business!

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Show Objectives - The Why
We all want to position our businesses with the best possible advantage and achieve maximum levels of growth, before we run out of money! Hitting the Stage IV Failure point, where working capital is destroyed is a very uncomfortable position to be in, this could put you out of business for good! Today we are going to give you a process to manage your growth and keep from reaching this point and direct you towards profitability.

Based on previous shows, we discussed how to build a scenario spreadsheet so you can change the variables to the impact on different parts of the business. Now we are going to establish the best case given your current business environment and how long to reach full capacity.

Many business decisions to make as we consider the shifting into post Covid mode. As the business owner we must be able to pivot and adapt to move into new levels of product and service delivery, requiring greater resources from those that support our businesses, the current environment will require new practices, standards of operating, it will require resilience! The article linked in the notes will help business adopt the resilience mindset and how it can help your business achieve success

https://www.huffpost.com/entry/4-ways-to-build-resilienc_b_7476864#:~:text=4%20Ways%20to%20Build%20Res

Key Issues - Owner Perspective:

A model of cause and effect relationships,
Work forwards from marketing spend to impact on cash flow - best case,
Work backwards from cash flow to marketing spend - realistic case,
Plan hyper growth scenario - 40% plus to determine bottlenecks,
Plan fast growth scenario - 25-40% to determine bottlenecks

What You Need to Know - The What

What You Need to Do - The How

Make sure your scenario planning spreadsheet has all of the variables separated from the formulas.
Start with known constraints - i.e. the number of people available, and place those into the spreadsheet.
If you didn't fix the constraints, how much growth is possible by month (total dollars sold, built, and delivered)?
Divide your estimated total capacity by growth per month - how long will it take to maximize the businesses potential?
What is your annual growth rate?
Change the scenario to 25% growth over the year, where are all of the constraints?
What will that require?
Change the scenario to 40% growth over the year, where are all of the constraints?
What will that require?
What is your target growth, how long to reach full potential, what must happen prior to starting aggressive growth?