Big Business Blueprint

How To Scale Your Business And Quadruple Your Income

05 – BigBusinessBlueprint_How To Scale Your Business And Quadruple Your Income

S1: Welcome back to another video course of Big Business Blueprint. In this video, we’ll be focusing on how to scale and manage your business. You’ll also be looking at how to gain exceptional levels of income in the long run, continuously.

S2: Excellent businesses have an edge which allows them to get ahead of the race. This advantage is called timing. Timing is the ability to select the precise moment for doing something for optimum effect. In this case, timing is the ability to gauge how much time that you or your team need to get certain things done.

You will come to a stage where your schedule has reached its maximum capacity and you would need to balance up your time between looking for new businesses, versus having quality time with the people who matter to you.

S3: For example, if you have a new project which you has a set deadline, how do you manage the allocation of work among your team? Do you simply delegate all of the work using top-down method? Or do you take a really good look at the work required for the project and instead adjust the work needed and shave off things that don’t need to be done?

S4: At this stage, you would have gained some insights on how to generate new leads, and managing existing clients. Instead of engaging in a one-man show, a better approach will be to set up a team to execute delivery while you focus on generating sales - marketing, generating new leads, pitching and networking.

To do that, you need to be working on your business rather than in your business.

05 – BigBusinessBlueprint_How To Scale Your Business And Quadruple Your Income

S1: How to project your income.
S2: Before you set up a team, you need to estimate your cash flow. Without 1
having any idea of how much money your business can generate, it is almost impossible to accurately plan your business ahead, and prepare for the tough times that may befall your outfit.

Fortunately, predicting how much you can earn is not difficult. You can estimate how much your first-year revenue is by calculating how much money you can potentially earn. If your company isn’t generating as much as what you’ve estimated, take it as a sign for you to tweak your plans.

S3: When you are at the helm of your business, it is very important to remember that a healthy business has a healthy stream of income. Predicting how much we’ll earn in the future is not easy, but there is a way; by projecting your income. So how do you do it?

S4: First, list down your current average earnings of 3 months and multiply them by 12 months. The amount you get will be you estimated annual sales.

S5: Secondly, subtract the total cost of production of the year, to get the gross profit of your company.

S6: Third, to get the company’s net profit before taxes, subtract the company’s operating cost from the gross profit. The costs that will be incurred include employee’s salary, payroll, overhead cost, rental etc.

And after that, you will need to further subtract the income tax from this.
Taxes vary from country to country, so I suggest that you should find the percentage of income taxes in your country to know your business net profit.

05 - How To Scale Your Business And Quadruple Your Income
S1: Leverage & Optimizes Your Company
S2: The next question you need to answer is how to increase revenue with the same amount of time and effort. You can do it by means of leveraging and optimizing your company.

Leveraging your business means using your resources to their optimum advantage for improved results.

S3: One big question that you need to ask to leverage is this: Am I using all of my resources to their best advantage? Do I still have back-seat roles in my team which don’t really contribute to anything? Do I really need these “back-seaters” to complete the projects or tasks given?

If you answer ‘no’, ‘yes’ and ‘no’, your business is ripe for leveraging on your existing talent pool and optimizing your team size to there are no back-seats.

S4: Companies which can achieve more results with fewer resources are great examples of leveraging.

S5: One example is Brand A, which produces higher quality vehicles even though Brand B spends more on research.

S6: There’s an African proverb that says, “If you want to go fast, go alone. If you want to go far, you need a team”. Many businessmen struggle in their businesses because they try to do everything themselves.

Some result in hating the entire process, because they end up performing tasks which are not their field of expertise, such as production or operations.

Some end up having to work extra hours unnecessarily. And the irony here is that they build a business with the purpose of having more free time and achieve financial freedom, yet they get swallowed up by the business.

What you need here is actually a team which can execute the more operational and technical aspects of the company. This way, you will have so much more time working on your business, which includes strategic planning and direction.

05 - BigBusinessBlueprint_How To Scale Your Business And Quadruple Your Income

S1: The S.A.S Strategy

S2: As mentioned before, one of the perks of having a strong business is you will have more free time to focus on the management and directional aspects of your business. For this to happen, you will have to start considering hiring a talented team of people to take care of the operational, daily and day-to-day tasks.

One of the best strategies you can deploy is the S.A.S: Simplify, Automate and Systemize

S3: Simplify: Keep things simple, organized and straight to the point.

Automate: Where tasks can be automated, automate it.

Systemize: Build systems, processes and standards by hiring managers that have knowledge to run the system.

S4: There are 5 main steps to simplify the business.

S5: First, list down in detail, all the task you need to do on a daily basis. This includes everything from processing payments to product creation, and meeting clients.

S6: Secondly, divide them into two categories; transactional and transformational actions.

Transactional tasks are rudimentary and predictable, which include processing salaries, paying bills, rent, and etc. Transactional tasks are perfect for automation. For example, sending out emails can be automated by using email services. You just need some time to write all the emails, upload them onto the email service, and set the time to send them.

Transformational tasks on the other hand, bring significant and positive impact to the business. They are the “got-to-have” in the company. For example, business development, staff training, personal development, sales and marketing activities. These are more difficult to automate since different businesses will have very different needs. This also applies to the team behind it.

The reason tasks are divided into these categories is so that we have clarity on what to prioritize and what to focus on, what positions to hire, the required job scope, and matching salaries.

S7: Thirdly, analyze the list and eliminate redundant tasks, double entry tasks and simplify complex ones. To do this, you need to be disciplined and ruthless. The aim is to be efficient and fast. Find a way to automate tasks such as assembly lines or filing. Doing this opens up more time and energy of yourself and your team to focus on more important tasks

S8: Fourthly, lump the transactional tasks together. Outsource or hire an administrative staff to take care of it, so that you can focus on transformational tasks.

S9: Lastly, hire and retain staffs that can perform transformational tasks. The right 7 kind of people is an asset to your business, so do not be afraid to cut those who are not a good fit to the company. Retain the ones who work well together in the team. Again, make sure you minimize back-seat roles as much as possible.

05 - BigBusinessBlueprint_How To Scale Your Business And Quadruple Your Income

S1: Getting The Right Team

S2: In the previous chapters, we have discussed about hiring a team to better 1
handle the tasks that is needed to ensure your business thrives. The right team delivers the best results and will ensure the continuity of your business. But first, what is an ideal team size for the business?

S3: It is recommended to start with around 5 to 7 people. A small initial team size is very important so that you can maintain team dynamics at the highest level. Dynamics require a solid context.

So unless a solid context is set at the beginning, a team that is too small would only operate on orders, and become very transactional and operational. You would need to be there physically most of the time, to manage them, and opinions that matter will not be voiced out.

You don’t want that to happen because you want your team to speak their thoughts, debate and challenge you healthily. It is only through that process you will be able to spot and cover gaps in the business and do better. A “yes” to everything kind of person is definitely a no-no.

S4: Keep a healthy balance between operational staff, creative staff, and managers or supervisors in the team you hire. A good setup will be 2 managers or supervisors to 3 staff. This is to keep the system running smoothly and maintains an optimal standards level. And again, keep in mind that you need to minimize the back-seat roles in your business.

S5: Be clear on who you want and what positions you want to fill-in. You may do this from the list of tasks which you did earlier on. This will allow you more free time to start thinking on a higher level, and work on your business.

S6: So do you want to hire a full-time staff or do you want to only pick up 4 contractual staff that only serve for certain projects? The answer really depends on you, whether you want a full time or contractual staff. Each has its own strengths and weaknesses. A full time team has the highest chance of developing company loyalty and a sense of ownership to both their roles and the business. The result is a committed workforce.

A part-time or contractual team can be an excellent staffing option for small or young businesses, due to the potential for flexibility and the relatively low cost. Such workers necessarily work fewer hours, so will cost less in wages.

S7: You could even outsource certain rudimentary tasks to keep costs low. In terms of hiring, it’s recommended to go with long term contracts.

You may also want to consider having a profit sharing scheme where the team can leverage off the business. This promotes empowerment, very strong staff loyalty, and lower staff turnover. This means less training time while saving you more time during the period of hiring and interviewing.

05 - BigBusinessBlueprint_How To Scale Your Business And Quadruple Your Income

S1: Improving Leadership: Culture

S2: If you happen to always end up with a poor-performing team, let me tell you 1
why. Here’s the hard truth: The problem lies not with your employees but with your lack of leadership skills.

Sometimes your team can be excellent in performing their tasks, but there may be some aspects that have not been addressed or have been overlooked that the performance does not reflect in the result. If you’re facing this problem, there are 3 key points in managing and building an “A” team. The first one is culture creation.

S3: Culture is important as it sets the context and tone of the company. It governs mindsets, attitudes and behaviors which ultimately influences your sales and profits.

If the company runs on a low energy level and your employees rarely converse with one another, what do you think the results would be? It would definitely be mediocre.

S4: To cultivate a high-performance work culture, you need to set rules, often referred to as Code of

Honor. You can do this by gathering the team and listing down the desired attitudes, behaviors and results that would require the team to practice to achieve your company’s goals.

The code itself lists a set of guidelines which helps the team perform well, under an effective leadership. Examples of Code of Honor items are Playing 100%, Never Leaving a Teammate Behind and Always Express Gratitude, to suggest a few.

S5: Filter out the unnecessary ones and then boil it down to a list of 8 to 10 rules. Put them into practice, and uphold them to the highest level to set the team into high-performance gear.
An example of a rule: “Rule #1: Committed to learning and personal development.”

05 – BigBusinessBlueprint_How To Scale Your Business And Quadruple Your Income

S1: Improving leadership: Learning & Development

S2: The second key point is to learn and develop. If the team is not learning, and 1
growing; then they are dying. Therefore, your team needs to constantly sharpen their saw.

S3: There are always businesses out there who work harder, smarter and quicker than your team. If there is no growth in learning or developing current talents, surely one day, your competitors will close the gap and surpass you. This also means death to your business. If you’re not learning, you're dying.

S4: Stay ahead by your competitors by structuring learning and development activities for your team. The reason is, these activities help them to be very efficient and effective in problem solving, time management and prioritization.

S5: There are a lot of activities that you can do for your team to help their growth. 3

The first is an Apprenticeship. This means sending your team over to other organizations and learn from them. This can be a very useful and effective way to eventually develop a new skill.

Second is Career Counseling. This is where your team member discusses with their supervisors to develop career plans which identify areas for improvement or advancement, how those areas can be addressed and when.

S6: Coaching includes working one-on-one with the learner to conduct a needs assessment, set major goals to accomplish, develop an action plan, and support the learner to accomplish the plan. The team member drives these activities and the coach provides continuing feedback and support.

Continuing Professional Development is very beneficial so that your team stays up-to-date in the views and practices necessary to lead and manage in today's organizations. There are an increasing number of universities, colleges and training centers associating Continuing Education Units (CEU's) with their course and workshops.

S7: Sometimes, your team doesn’t have the proper technique to learn and retain new things.

Organizations and other environments are changing rapidly. Therefore, it's extremely important to continually be aware of those changes, and to be reflecting on them and learning from them, as well.

Basically, with Continuous Learning, you help your team to learn how to learn.

Courses& Seminars are great platforms for the learning and development of new knowledge or skills of your team. Courses with hands-on experiences are better since it will help your team apply what they have just learned, making the lessons more effective.

S8: Another great way to encourage self-learning for your team is to provide them with opportunities to give presentations. For example, have a 15-minute presentation on a topic that adds value to the team. If there are 7 people in your team, there would be a total of 105 minutes of presentation in a month.

Annually, it would be 84 topics or 21 hours of learning.

05 - BigBusinessBlueprint_How To Scale Your Business And Quadruple Your Income

S1: Improving leadership: Debrief.

S2: The third key point is havinga debrief or a post-mortem after each successfully completed project.

S3: Debriefing is the most powerful learning tool to recap everything you have learned. Debriefing is done by evaluating a recent project. Key areas to look into are reflections of what has been done, insights with the aim of that project towards the future, linking the challenge with the actions and how can similar projects be done more effectively and effectively in the future.

S4: Debriefs are important after your projects to identify gaps and insights as preparation for other projects. So in this stage, it is essential that your project team prepare a list of gaps during the project.

There are 2 ways that you can go about this. The first is to identify the current gap that the project team detected and how to close the gap in the future.

The second is to identify potential gaps in the future. An example is if you hear that your competitor is introducing a “faster” product sometime in the future, you might conclude that this could be significant to your business.

S5: The next part is to arrange a meeting session with your team. Now this is critical because your project team may have things that they might want to point out which is actually critical, but not noticed during the project.

Imagine skipping out on debriefing session and starting right away on the next project. Not only it will cause the same mistakes to be made over and over again without anyone realizing, but your project team may get demoralized and further risking the projects in the future.

Therefore, it is your core role as the facilitator and leader to conduct the session without bias regardless of an employee’s rank.

S6: The following questions are designed to facilitate insights from your team. i. What happened?

ii. What should have happened instead?
iii. What did we learn?
iv. How can we improve?
v. What are the action plans for this session?

At the end of the session, you would have an action plan which the team can execute to improve on any aspects they are lack in.

05 - BigBusinessBlueprint_How To Scale Your Business And Quadruple Your Income

S1: Managing your finance.

S2: The final part of this module is to manage your finances. If you do not know how to manage it, then it is recommended to hire or outsource it to someone. As a business owner in charge of your team, you need to know your finances to evaluate your business growth.

S3: The strategy is to minimize expenses by maximizing profits through sales and marketing. To do this, you need someone to monitor your company’s cash flow.

Unnecessary expenses are identified from the task list created at the beginning of this module. When you eliminate them, you cut down your expenses.

S4: Upon receiving revenue, pay your staff first and yourself last.This is to take care of your engine (staff) and keep it running. It will definitely be a huge pay off in the long run. Then pay for what’s necessary to keep operations running like office rent, utility bills and etc.

S5: With the balance as net profit, allocate 10% to the growth and development of the team.

S6: This cover costs you’ll need when sending qualified team members to seminars, workshops, investing in books or training videos. Do this strategically with a specific outcome.

S7: Allocate another 5% to spend on R&R. The team cannot be running 24/7 especially when it comes to creative work. The mind needs to rest and unwind and funds are needed to accomplish that. There are business owners and team leaders who do not allocate any play time for the team to recharge and will only result in burnout and boredom.

When fund allocation is done in percentage versus value, the team is empowered, feels a sense of ownership of their work, and thus would contribute actively to the company; all that needs to be done now is to increase productivity and marketing of the company. More revenue equals to more profits, funds for learning, profit sharing and R&R.

S8: When your business growth expands, hire a sales and marketing team to bring in sales for the company. Do high tickets to attract more profitable business projects instead of small projects with less profit. An example of a high ticket would be a three to four days coaching program to help your clients expand their businesses, using your sales and marketing knowledge.

S9: Allocate 10% of your net profit into researching new business opportunities in the market, studying about the future market trend, and expanding your current business.

S10: And allocate another 20% into building a new company using the same kind of strategies and tactics. Doing this will potentially double, triple, or even quadruple your income! Isn’t that amazing?

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