Many businesses do not capitalise on what they already have and own. They call this ‘leverage’: using what you’ve got… re-packaging it to reach more or different people.
As an example I will use The Directors’ Centre who work to “help business owners to grow their businesses faster”. This is a mini-case study (with a bit of business education thrown in!).
The business education bit: the problem that most business owners have is that they think that they can do most things themselves. Wrong! As a seriously under-performing DIY ‘man about the house’ I can assure you that there are a couple of things that you need to know:
- Most people are lousy at DIY.
- Most people hate the instruction book which is usually wrong and irrelevant.
- Most DIYers only call in the experts when they start to get out of their depth. In other words, when it is too late.
My point: you can attempt DIY and it may well work but…
- You need a great instruction manual.
- You need to be honest about what you can and what you can’t do.
- Be prepared to call in the experts.
The mini-case study bit: a consultancy can use much of its existing collateral (tools and techniques) with one-to-one.
And the leverage? You can sell access to your existing tools and techniques via a Business Club. New clients get access to our tools (but not on a one-to-one basis) and if they get stuck they can still call in the experts. Everyone wins.
This is leverage – using existing assets/skills/expertise in a different way. Surely you can leverage what you’ve already got – present it in a different way or to a different audience.
RELEVANT LINKS:
The Directors' Centre Business Club
The Directors’ Centre - the consultancy
16 comments:
Very good, logical. Because you always need the one-2-one piece.(like in massage or in most therapies) And of course you appear to be generous by sharing.
In reality I like the Business Club and its monthly updates. I don't need the one-2-one help but it helps me to clarify what I am doing (or not doing). And the same applies to the workshops (especially the new work ON one in Birmingham - don't know the URL etc..)
Thank you Robert
Attended London Bridge today. Very good.
You are saying that businesses should always put up their prices and sack customers and you will lose less customers than the increased profit will cover. Is that right?
Jason
"You are saying that businesses should always put up their prices and sack customers and you will lose less customers than the increased profit will cover. Is that right?" -
The simple answer is:
No, that is not exactly what I am saying. What I am saying is that the way that the maths works (in the example I usually use) with a 30%GP and a 10% price increase you can afford to lose up to 25% of sales volumes before your profit in hand is damaged...
Also the order of doing things is
1) If you can, put up prices and if you can't do that then
2)decrease direct cost and if you can't do that then
3) fix under-performers and if you can't fix them then consider sacking them etc etc
I trust that this makes sense.
RC
You should talk more about the DIY aspect. We cannot do this stuff oursleves. We need help!
Have a look at
http://robert-craven.blogspot.com/2009/10/why-diy-when-you-can-outsource.html
Whoever said there was an instruction book?
A bit of a plug for Directors Centre but the principles behind it (the blog) are sound.
Nobody should mention a Blueprint (joke)
This article just touches on a big subject. A new book maybe?
Maybe you need someone to help you with your shelves?
AF
A bit of a convoluted case study. However I understand what you are saying. There are few businesses that cannot benefit from some kind of leverage - using their existng assets in different ways.
Correct!
RC
Nice concept. Shame about the shameless plug. A paper thin veneer...
Nice concept. Shame about the shameless plug. A paper thin veneer...
A bit of a plug for Directors Centre but the principles behind it (the blog) are sound.
Whoever said there was an instruction book?
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