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FBP 126: How to make positive change in 2018

The start of a new year is generally the time we decide on making big changes to our lives or business. On this episode of the Fluid Business Podcast, Ray Moore and Andy Sleet talk about what will make you change this year. It’s a combination of understanding where you’re going and WHY you want to get there; without this, change won’t be sustained.

Our team of professional business coaches share their expert knowledge and experience every single week, empowering you, the business owner, to develop and grow your business the right way.

Join us as we cover core subjects areas in our unique and relaxed way, including: Rapid Growth, Family Business, Team, Efficiency and so much more.

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FBP 125: Transitioning from Worker to Owner Mindset

One of the most challenging things facing the founder or owner of a growing business is the change in mindset to transition from a worker to an owner. Ray Moore and Andy Sleet discuss some of the ‘hats’ business owners need to wear – from work and supervisor to director and owner. In this episode, Ray and Andy will also get you to think about where your value is in the business and how to maximise this.

Build on concepts covered in Ray Moore’s second book: Can YOU Step Up to the Growth Challenge?

Our team of professional business coaches share their expert knowledge and experience every single week, empowering you, the business owner, to develop and grow your business the right way.

Join us as we cover core subjects areas in our unique and relaxed way, including: Rapid Growth, Family Business, Team, Efficiency and so much more.

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Don’t lose sight of your end goal

One of the most challenging things for business owners is to grow their mindset along side their business – transitioning from the ‘Worker’ mindset to the ‘Owner’ mindset.

Ray Moore categorises the different mindsets as the ‘hats’ the business owner wears. There are five hats that, these are:

Worker – Gets on with daily work tasks and activities – doing the do!

Supervisor – Delegates activities to others. Sets and aligns the priorities to achieve the plan. Also gets on with their ‘real work’ – doing the do.

Manager – Agrees milestones (budgets, plans, targets etc.) with the Director and delegates tasks to others in order to achieve the plan. In addition, they get on with their ‘real work’ – doing the do!

Director – Sets the direction of the business that will achieve the objectives set by the owner. They set and agree the Managers goals to ensure they are aligned and regularly monitor the progress against agreed milestones. In addition, they have their own priorities, which they see as their ‘real work.’

Owner – Sets the objectives of the business (the End in Mind). They inspire and enrol the Directors and ensure the direction set is aligned to the vision, then regularly monitor progress against the plan. In addition, they set their own priorities and spend a proportion of time getting on with what they see as their ‘real work.’

Which hat do you wear the most in your business?

In large corporations, job roles are often more defined and there is a clearer hierarchy. People are more likely to spend the most time wearing the hat that corresponds with their job title.

However, things are different in SMEs. The lines are blurred around roles and titles and the business owner is likely to wear many of the hats, from Worker to Director – and they probably change hats many times a day!

The key to successfully transitioning through the Levels and growing your business, lies in the proportion of time you spend wearing each hat. Getting too comfortable wearing the wrong hat is a real danger to your business and business growth, and can result in your business becoming short sighted.

In the definition of each hat, you’ll see that they all have ‘real work’ to get on with. Don’t lose sight of the end goal for your business, whether its security or freedom. The only way to reach it is by changing the way you think. And, if you don’t, you’ll be stuck in the daily grind forever.

Based on Ray Moore's second book: Can YOU Step Up To The Growth Challenge?

Ray Moore and Andy Sleet cover this topic in more detail on the Fluid Business Podcast, listen below:

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The Growth Triangle – Business Growth, Cashflow and Profit

Most will understand the importance of cashflow in business. But often without realising, businesses can build a cash gap. This is the time between when a business pays cash out and makes purchases, to the date the cash is received in from customers and debtors.

It’s important for small businesses to recognise the potential impact this could have on business. For this we need to understand the true important of cash flow. Business owners and leaders don’t want to arrive in a situation where they need to cover the difference, through factoring or bank financing.

To understand the power of cash flow and its impact on business growth, Ray Moore explains ‘The Growth Triangle.’

At its most basic, the model presents the idea that business growth produces more profits for the business, which gives a healthy cash flow which can be reinvested in growth.

But is this really the case?

The second part of the model shows other areas that influence the Growth Triangle. In a more realistic light, profits in the business can become caught up in the balance sheet before creating cash flow. This could be because we’ve given extended credit or we haven’t chased up our debtors for payment.

So what started as profit doesn’t come out of the balance sheet as cash, which restricts how much we can put back into growth.

We may then use the cash flow we’ve got to purchase new machinery or vehicles, so there is even less cash to push into business growth. However, the amount we do invest into business growth then starts to produce more costs in the form of overheads, therefore it doesn’t produce the same amount of profit as before.

This is why business owners often say they made more profit when they were a smaller size and why many business owners settle on their business being a smaller size.

Preparing for business growth

As important step in preparing for business growth is to ‘Set out the Stall' and look at each of the filters in the Growth Triangle so that growth doesn’t drag in more cash, without making a profit. Ensure that your return on investment calculations are correct and identify the assets that create growth and profitability, whether is people of machinery.

By doing this, you can efficiently build up a cash reserve and be prepared for the extra amount of cash and investment you’ll need for the business growth. You’ll also have the awareness of which investments are the most important to your business model in order to produce the best return of your investment.

For more on business finance and accounts, join Ray Moore's on-demand webinar – Accounts: DEBUNKED. 

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FBP 124: The Growth Triangle

Cash is one of the key drivers in business and a lack of cash restricts growth in small businesses. In this episode of the Fluid Business Podcast, Ray Moore explains the Growth Triangle, which is a visualisation the process of business growth, profits and cash flow.

Click here to download the diagram.

If you’d like to view the Accounts: Debunked webinar, click www.fluidbusiness.co.uk/accounts-debunked/

Our team of professional business coaches share their expert knowledge and experience every single week, empowering you, the business owner, to develop and grow your business the right way.

Join us as we cover core subjects areas in our unique and relaxed way, including: Rapid Growth, Family Business, Team, Efficiency and so much more.

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FBP 123: What Is The Next Milestone In Your Business?

Do you know what the next milestone for your business is? In this episode of the Fluid Business Podcast, Andy Sleet and Ray Moore are discussing how milestones can help to keep the momentum going in your business. They also share practical advice to help you achieve your business objectives.

You can read more on this topic on the Levels Blog.

Our team of professional business coaches share their expert knowledge and experience every single week, empowering you, the business owner, to develop and grow your business the right way.

Join us as we cover core subjects areas in our unique and relaxed way, including: Rapid Growth, Family Business, Team, Efficiency and so much more.

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FBP 122: How Well Do Your Customers Know Your Business?

Do your customers know all the products and services your business offers? Andy Sleet and Ray Moore share why you shouldn’t make assumptions about how much your clients know about your business. They also share some tips and tricks on how to spot opportunities with your existing clients.

Our team of professional business coaches share their expert knowledge and experience every single week, empowering you, the business owner, to develop and grow your business the right way.

Join us as we cover core subjects areas in our unique and relaxed way, including: Rapid Growth, Family Business, Team, Efficiency and so much more.

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How well do your clients know your business?

One of the key drivers of business is ‘Delivery.’ This refers to the consistency and quality of your products and/or services and is usually a focus for business owners. However, for most business owners the priority is driving sales and finding new clients. This can lead to your current, most valuable clients being forgotten.

You’ll be aware that there are some customers that are more valuable to your business (your ‘ideal’ clients). But are these clients aware of all the products and services your business offers? Maybe you’ve told them, or mentioned it in the past. But do they have a full understanding and awareness of everything your business offers?

It’s a well-know fact that getting new clients to purchase from your business is much harder than selling to your existing clients. So what are you doing to identify new opportunities with your existing clients? Getting a true understanding of your customers will help you to sell more. The more you know about their needs and the products or services they use, the easier it is to see opportunities for your business.

TIP

Take some time to get to know your clients, consider using a spreadsheet to register:

  • What your clients currently purchase from you
  • What they use, but purchase elsewhere

Use this information to spot the opportunities and build offers to create awareness.

You might notice a spike in sales as your customers become aware of the wider range of products and services your business offers. And, even if some decide not to purchase with you now, your business will become a suitable alternative if something changes with their current supplier.

This process of getting to know your clients is important for more than the reason of cross/up selling. Having a deeper and clearer understanding of your clients, their needs and current suppliers, you’ll get a better understanding of your target market. Use the information you’ve learnt to build customer profiles and segments that can then be used in your marketing efforts.

The key benefits of getting a true understanding of your clients, and for your clients to have a true understanding of your business are to:

  • Build better relationships with key decision makers
  • Improve awareness of current clients needs
  • Meet client needs more effectively
  • Profile/segment your target audience
  • Increase effectiveness of marketing

For more on this topic, tune in to Episode 122 of the Fluid Business Podcast:

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FBP 121: Great teams know who they want on their bus

The ‘bus’ analogy is a well-known, sometimes over-used, concept when talking about teams. On this episode of the Fluid Business Podcast, Ray and Andy give a different perspective on this concept and discuss seven questions business owners need to ask themselves and their team.

Read Ray's blog post here: http://www.thelevelsblog.com/great-teams-know-who-they-want-on-their-bus/

Our team of professional business coaches share their expert knowledge and experience every single week, empowering you, the business owner, to develop and grow your business the right way.

Join us as we cover core subjects areas in our unique and relaxed way, including: Rapid Growth, Family Business, Team, Efficiency and so much more.