How do you create an automatic business that runs without you?
This is not just theory. It comes from guidance, a system, and a commitment from the business owner that they want to work on it.
Let's get started with the definition of a Business according to ActionCOACH.
It is a commercial profitable enterprise that works without you - the business owner.
You see, when I work with my clients, I get them to just work on one of these areas. Is it a commercial enterprise? Or is it a profitable enterprise that works without you?
See, I meet lots of entrepreneurs that want to start, maybe, one, two, or three businesses, and guess what? They all have the same problems. Because the fundamentals are not set up correctly.
Commercial means that you're selling something that people value or something that they want to buy.
Profitable means that you understand enough about your business finances that you could possibly increase your profits without evenincreasing your revenue or even lowering your expenses.
Now, the next step is something that works and can work without you.
This means that you have a system and a team that you can trust. So how does this all work?
First, we have to start with the level of MASTERY. When I begin to coach a business owner and their business, I need to look at four different areas of Mastery.
The first of these four areas is Destination Mastery. Are you clear on the destination of where you're headed? Are you clear that your team is aligned with you and your vision of your business and where you want to go? Is your team's culture and your culture the same? You know, we have lots of areas for us to work on - vision, mission, and core focus.
The second step is Money Mastery. This is the second area where we look at your finances. What are the numbers that you need to know that you have to track every day,every week, every month, in order to understand what's going on in your business? Can you increase your profit margins without increasing your revenues?
The third part is now all about Quality, Service, or Destination Mastery. What are the simple systems that you have in place to make sure that the promises that you have given your customers are delivered consistently, every single time?
The fourth area is Time Mastery. How do you manage so youuse your time to be really focused on your business and strategic things? What kind of structure do you need to create in your organic ation so that everyone is helping you to build this business? It's not just you. However, this starts with yourself.
Now the second step that we're looking at right now is NICHE. When you build a house, you need to build a good foundation. The second step is building the walls and the support of your structure. Well, we're now focusing on building our profits.
In Mastery, it was all about stability. That's really what the name of the game is.
In Niche, this is where we're talking about cash. How do you get more predictable cash? You need to begin to start to sell on value and not on price. To do this, you need to know what your unique selling point is and your unique selling advantages. Next, you need to act on those five dials that you need to turn up that are going to affect your profits.
No matter what business you are in, you need to increase your leads, you need to increase your conversion rate of those leads, you need to increase the number of transactions for each customer and you need to increase your average amount per sale. Plus, you need to increase the profitability per sale. These are the five different areas that will affect your bottom line.
However, when we coach business owners, we find that what they say is that, they want more profits, but they really don't know what the root cause of their profit problems is. They might read this book or that book and look at different case studies. But it seems like everything looks good. They don't really know how to analyze their business and figure out what's the root cause of their profit problem. So they end up wasting time and money by using the wrong strategies. And this is where you're wasting your profits; you're wasting your money. You're wasting your time.
In the ActionCOACH Program, we make sure that you are working on the right strategies and we guide you to get the right results. So when we have cash now, we want to buy ourselves time. This is what LEVERAGE is all about.
If you have a business, it's supposed to support your life. Your life is not supposed to support your business. The difference just between making money in a real business is the amount of time that you could actually create for yourself and most importantly, your family. Leverage is about creating more professional systems.
After that, it's about recruiting and then developing your leadership and management TEAM. And eventually developing a GEM to give you more freedom to replace you in the business. Why? Because this is the point of your company. It should be on autopilot.
If you have all these four areas covered, then you can actually think about expansion. You have someone, you could depend on to deliver the day-to-day execution of the business. So up to this point, it's on autopilot.
After this, it's SYNERGY. This is where we start thinking about how can we duplicate and expand. This is where we start thinking about opening up new branches because now you have a team and systems that have already been proven in one business.
Richard Branson says that if you learn how to do this for one business, you could do it again and again because the basic principles are the same.
Synergy is about duplication. And eventually, all this creates is greater RESULTS. Not just more money, but a quality of life and freedom that you really want. We all know that's what our real dream is, right? We want to be able to do what we want to do when we want to do this.
I hope you are as excited about this as I am to introduce this concept to your business. What we like to do is we like to work with you to introduce this framework to actually guide you in your business.
I would like to invite you to take on a free coaching session, to see if there's a difference between having a motivator, a trainer or an ActionCOACH on your team.
Check out our website for more information and go to www.actioncoachjax.com or give our office a call and see the power of coaching.
My name is Steve Goranson with ActionCOACH Business Coaching.