8 keys to a bigger, better business. Key number 4 …

SF8YGVOUL8Many business owners put all of their energy into the product they make or the service they deliver. Of course it’s important to have a fantastic offer and build customers who love what you do. But the real asset in your business – the thing that’s going to make it valuable – is the business model itself.  How is the business structured to enable growth?  If you were able to spend less time delivering what you offer and more time thinking about how to grow your capability and your market… what would your business become?

Key number 4.  Focus on your business model

If you are going to create an asset – a valuable business that will pay you back for all your hard work – it has to be scalable. It has to be able to grow. Which means you need to think as much about how you do business as what you actually sell.

In a simple services model, like my advertising agency, my growth model was always going to be systems and team.  I needed to build a team that would deliver the result as well as I could… time after time after time.  So I planned for this and put energy into this.

With my pet care services business we used technology to take care of all of the administrative side of the business – a sophisticated search and booking system allowed clients to find and book their pet carers. Head office didn’t have to do anything other than recruit and train carers, and marketing. Our model was infinitely scalable with minimal effort.

So think now about how your business model works and what needs to be changed or re-designed to enable growth.

A note on recurring revenue

The most valuable businesses to a future buyer are those with recurring revenue – money that comes in regularly every month without having to get a new sale. In my ad agency we had most of our clients on fee based contracts, so we knew exactly what was coming in. Most contracts were for three years, so we could plan our growth in advance.  Other recurring revenue models are subscriptions, memberships, franchise or license fees or product dependency (This is where you sell a piece of equipment – say a photo copier or printer, that requires the customer to buy ink, toner and paper every few months for the life of that machine).

If you can build recurring revenue into your business model, you can greatly assist your ability to scale and grow.

Exercise

Two things you can think about now – what do you need to change to enable your business to scale, and how could you add some recurring revenue to your business?  Grab a big pad of blank paper, or white board.  Grab your partners, or your key staff, or your business coach, advisors, friends… whoever you can get to share some time with you.  Brainstorm the growth potential for your business… what impediments do you have to growth, and what can you do to overcome them?  And how can you build recurring revenue into the model?

As always, feel free to email me with ideas or questions.  Love to help if I can.

Happy growing :)

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Newsflash!  Early bird price for 2016 Group Programme ends soon.

The 2016 Acceler8or Group Programme kicks off late July. The programme takes 10 business owners on a 12 month journey to discover the true potential of their business and how they can ultimately create financial freedom through business.  To find out more click here or just email me at laura@liber8u.com to find out more about pricing, early bird deals etc.

Acceler8or Testimonial:

“This has been the best money that I have spent on education ever! My business has gone forward in giant steps that I could not have imagined taking 12 months ago. The program has more than lived up to my expectations, the skills and tools that I have learnt have helped me immensely. I have a solid plan to work to and my business is achieving great numbers. As a result of the program we have changed our image and direction and are making strong confident steps in an area of the global market that I would never have imaged one year ago. I have hired great staff and added brilliant contractors that perform with excellence and have given me great standing amongst my A List Clients. My confidence in my own abilities to lead a team on a successful challenge has risen. We have really kicked some great goals on an international level over the past few months. I believe this is totally due to Laura’s coaching. As a company we have a vision and the brand is performing to expectations. Planning and budgets are now high on my list. I would totally recommend the programme to any business owner who is serious about stepping up. If you have the product this is the course that will take you to the top.”

8 keys to a bigger, better business. Key number 3 …

success-846055_1280When I did a plan to start my own advertising agency I knew right from the start that I was building it to sell it within 10 years.  And I knew that the likely buyer would be a multi-national agency group.  I even wrote down what I wanted to sell it to them for. I painted a really clear picture of what they would be looking for in a boutique agency and I set about building that business for them.  I worked out what I was building and then I put a plan in place.   I was taught to do this at a business school I attended…. It made sense to me, so I stuck to my plan and achieved my sale price within 9 years.

Key number 3. Start with the end in mind

The key to my ultimate success with my ad agency was that I planned my exit right from the start. I knew what my end goal was, which enabled me to work out my plan to get there. I had a clear picture in mind, which kept me on track, even when the going got tough.

This is something I encourage all business owners to do. Plan your exit now – will you sell it one day, or will you build it so that it generates income for you even if you are not there? What kind of business do you need to build to enable this? What does it look like? What do you need to build in order to create value?

Many business owners tell me they will never want to sell their business.  I say that it really doesn’t matter… because if you build a business that is valuable and saleable, it will be ticking all the right boxes and you will have choice.

If you don’t build a saleable business and something happens to you… you don’t have choice… you work hard for years and years and have nothing to show for it.

Here’s an excerpt from my book “Liber8 your Business” on the topic of having a clear end game:

“A business is a project not a life sentence. By having a clear picture of where you are going, you can create your own map of how to get there. When I started and I was alone in my horrid little one-roomed office, with concrete walls and no natural light, I dreamed of a beautiful office with high ceilings, big windows, wooden floors and a big staircase sweeping up the middle. I saw a team of motivated young people all passionate about creating the best boutique agency in the country. I could see the award trophies lined up and could feel the joy of knowing I’d been successful. I painted a picture of exactly how I wanted my agency to be and worked out what it needed to be doing financially to deliver on this image.”

My book and my programmes teach you how to work out a realistic sale price and how to paint the end picture that will deliver this for you, and I’ll cover more of the critical components towards creating a valuable business in my next 5 keys to a bigger, better business.

Exercise

Think about this… if your business could be anything you wanted it to be in the future, what would it look like? Don’t let the obstacles you might see in front of you influence your imagination here. What does success look like for you? Think about the financial return as well as the satisfaction you will feel from building something really special. If someone knocked on your door offering to buy your business, what would be a price you would sell for?  And how would that influence your life? What sort of business would they be buying and what makes you feel proud?  Remember, you don’t have to sell it… but you do want it to be valuable.  Imagine the satisfaction of turning down the offer?

The 2016 Elev8or Group is coming soon!

For ambitious business owners who want to create a clear end game for their business, build a plan and be guided and supported to make it happen.  Only 10 business owners will be selected to join … are you ready for it?  Click here for more information.

 

 

8 keys to a bigger, better business. Key number 1…

sunset-1331088_1280Over the next 8 blogs I’m going to share my 8 keys (from my own experience and from observations gleaned by interviewing a myriad of successful entrepreneurs) to a bigger, better business and I’m going to invite you to think about each key, with an exercise to complete before the next key appears.

Key number one: Be in business for the right reasons

If you are going to sink your heart, soul, time and money into a business that will most certainly take over your world for a fairly significant period of time, you better be sure you know why you are doing it.

In my view, there are only 2 reasons to be in business:

To make money and to make a difference

Business is a financial game, it needs to make money in order to thrive. And it is not shameful in any way to want to generate profits in order to build a valuable business. If you are going to grow a bigger, better business you must have a good understanding of how this business will make money and how it will grow profits over time.  A business that does not care about growing profitability is more of a hobby or a cause than an actual business. This was a discipline I really had to learn from scratch – I had no business or financial skills when I set out.  But I hired in the help I needed early on – including getting two external directors – to make sure my business had a strong financial backbone.

However a business that cares only about the money is a business without soul. The desire to make a difference is critical because if you can find a way to solve problems for people, to give them something that answers their needs in a positive way, you will always have customers. And you will have a positive impact on the world, which in turn will make you feel good about yourself.  There’s a wonderful karmic attraction that happens when you put your focus onto making a difference – the more people you attract and the more money you make.

So when I work with business owners, we explore their reasons for being in business and we ensure it is a business that makes both money and a difference.

Exercise

Think about how your business is making a difference.  Who is it making a difference to?  What is the problem you are solving and for who? Why is this different and better to other solutions out there?  See if you can articulate the difference you are making in one or two sentences.  Remember the more people you make a difference to, the more people will come… so think scale, think big…

Let me know how you get on.  Feel free to email me any time at laura@liber8u.com … I’ll be happy to help your work out what your ‘make a difference’ mantra could be!

laura-signatureNewsflash!  The 2016 Elev8or Progamme – for business owners ready for the next level – will be kicking off soon.  Click here for more information.

 

What makes a saleable business?

In this video, I’m talking to a large group of business owners about creating success in business. And as those who know me will tell you, my definition of success when it comes to business is … to build an asset that ultimately feeds you financial freedom for the rest of your life.

If you ever want to sell your business (and even if you don’t) there are 9 key elements that make a business ultimately valuable and saleable:

  1. Great product – meets a need/Clear niche
  2. Great model – scalable/growth potential
  3. Great brand
  4. Great reputation
  5. Great customer base
  6. Great cash flow – Locked in revenues
  7. Great team
  8. Great systems
  9. Great financial model

Take a look at the 4 minute clip above to hear more about these… and if you want to start creating that valuable business sooner rather than later, email me today about the 2015 Acceler8or Programme.

10408030_10153303069549365_3957956822873282887_nThe Liber8 Acceler8or Programme is designed to help business owners build valuable businesses… sooner rather than later.

The 2015 programme now kicks off with a workshop 28/29 July. Email me now laura@liber8u.com if you’d like more information.

Does your business ever feel like a life sentence?

My early mentor in business was Robert Kiyosaki. I studied with him all around the world, long before he wrote the Rich Dad Poor Dad books.  One day, at his business school in Hawaii I was sitting next to him at dinner.  We were talking about finding your life purpose and building a business around this.  I asked Robert how to find my purpose, my passion.  He replied, “Laura, you’ll find what you love by looking at what you hate most.”

This thought stuck with me and over time, as I’ve worked with and talked to hundreds of business owners, I realised that what I hate is seeing small business owners becoming slaves to their business – after setting out with a dream of creating their own destiny, being their own boss, running their own lives, they find themselves chained to a business that doesn’t pay them enough, works them too hard and impinges on their quality of life.  It’s not supposed to be like this.

The team at Liber8 are committed to setting small business owners free.  To help them create businesses that are not dependent on the owner for survival, that can grow and prosper and pay the owner back handsomely for all their hard work.

Are you ready to turn your business into a valuable asset?

We’re running our 2015 Acceler8or Programme with a workshop kicking off very soon – designed to help you build an asset not a life sentence.  If you’d like to know more about it, email me laura@liber8u.com and we’ll send you some information.  It’s for a small, select group of business owners how are ready to build the business that sets them financially free.  Are you one of them?

Be free and happy!

motivation-new

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3 steps to turning your business into a valuable asset

11156283_10153303242804365_8882445748495223375_nThe Liber8 team held a powerful workshop a few weeks ago.  Twelve people in a room had the courage to look at their mindset around money, wealth and business.  On their feedback sheet after the workshop, 80% of them mentioned the realisation that a business should be an asset not a job, and the keys to getting there were key out-takes for them.  This is what we teach at Liber8.  We are passionate about it and we strongly believe that if every business owner in New Zealand set out to create an asset rather than a job, we would see a very different economy and a very different Country.

In a moment I’ll share three of the keys to building a valuable business… but first let me explain this flip chart from the workshop.

If you business requires you to go to work every day in order for it to continue to exist… and you don’t have a plan to change this in the future – you don’t have a business, you have a job.  And it may even be a job that pays you less than someone else would pay you to do the same job, makes you work twice the hours, puts too much stress on you and doesn’t let you take enough holidays.  Sound familiar?  A job is something that pays you some income, but doesn’t allow you to build wealth on the way.

If your business is able to generate income without you having to be there – it has become an asset.  If your business has value to someone else, who would like to pay you a significant sum of money to buy it – it has become asset.  An asset will feed you long after you stop working.

Which is your business?  A job or an asset?

If it’s still a job, don’t panic.  Every business starts out that way.  But its the business owners who make a conscious decision to transform it into an asset over time that really win.  This is what we teach at Liber8.  Financial freedom by turning your business into an asset.

Here are just three of the steps we encourage our members and clients to take:

1. Decide that you want to create a valuable business not just a job for yourself.  Think about your own mindset and paradigm, what are you telling yourself on a regular basis that would prevent you from striving for this.  Question your own belief systems around growth, wealth and what is possible for you and your business.

2. Address your business model.  What is holding back the growth right now?  Have you created something that is very dependent on you?  If so, what changes could you implement that would reduce this dependence?  Do you need to find a way to duplicate what you do and train others to deliver?  Do you need systems and products that can deliver without you?

3.  Create recurring revenue streams.  The most valuable businesses are those where cash flow can be predicted into the future.  Clients who are locked in to regular income – income not dependent on the owner – this is where value is created.  There are many examples of business models with this value well and truly in place.  I will share some of these in my next blog.

In the meantime, think about the three steps above.  And feel free to email me with your questions at laura@liber8u.com

Yours in freedom

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The all new Acceler8or Programme

We are looking for business owners ready to get serious about transforming their business into a valuable asset.  Our next Acceler8or Programme kicks of end of July.  Do you think you have the right mindset to join us?  Email me laura@liber8u.com for more information.

 

 

 

 

 

Do you have what it takes to grow? The 2 qualities every serious entrepreneur needs

growthThere are only two things I look for when it comes to choosing a business owner I want to work with, or who I invite to join my mentoring programmes.  If I see these two things I know this business owner has a chance at building something amazing – with a little guidance, a lot of determination and a commitment to thinking strategically.

So what are they?  These two things… let’s take a look:

1.  A willingness to grow.  This might seem obvious but when I work with people I often have to battle the mind before I can help uncover the potential.  Too many small business owners are exactly that … small business owners.  They live inside a comfort zone of their own creation. It’s warm and snuggly and safe. But it’s also restricting, limiting and stifling.  When someone really wants to grow, I know I can help them.  When they don’t, I can’t.  It’s that simple.  If I ever invite you to work with me, I will interrogate your willingness to have your comfort zone expanded, along with your dreams.

2. A business model capable of growth.  Even with the strongest desire in the world to grow, you have to have a business model that is capable of expansion.  There has to be a market for what you offer, a need for what you sell and a business structure that can scale up.  If a business owner has the willingness to grow, we can work with a business model and if necessary change it to allow for growth.  But there has to be a willingness to change if this is necessary.

So how do you think you shape up against these two criteria?  Are you willing to grow?  Are you willing to challenge your business model and explore re-engineering to enable growth if necessary?

If the answer is yes to these questions, I’d love to hear from you.

I’m about to launch my annual Acceler8me Programme for business owners seriously looking to grow.  I have two more spots to fill.  Could you be one of them?

If you are willing to move outside of your comfort zone and explore the true potential of your business, email me here today  and I’ll tell you more about the programme.

Growth isn’t always easy.  But you don’t have to do it alone. I’m here to help.

Talk soon

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From the desk of Liber8me.  Business mentors and publisher of multi-award winning book Liber8 your Business:  The revolutionary business planning technique that will set every small business owner free

Have you created a business or a life-long job?

 ‘ball and chainSuccessful and unsuccessful people do not vary greatly in their abilities. They vary in their desires to reach their potential.’ John Maxwell

One of the first questions I ask when I present to business groups is: ‘Why are you here? Why are you in business? Why on earth have you left the security of a job with regular pay to start your own business, with all the uncertainty this holds?’

I always get similar answers.

Mostly, people say they don’t want to work for someone else. They don’t want someone else’s culture.They don’t want to be told how the way it should be done. They want to be in control. They want flexible hours and to spend time with their children. They want to be able to go on holiday when they want. They don’t want someone telling them how many weeks’ holiday they can have a year. They want to do something they really love. These are all honourable reasons for starting a business.

But, ironically, many business owner-operators end up with the complete opposite. They find themselves with little control. They discover their clients have the control and will often demand they work longer hours than they ever did when working for someone else. Most small business owners pay themselves less than they would be paid working for another company.

Crazy, I know, but it’s true. You go into business for freedom and control and end up working longer hours and earning less. Sound familiar?

Many business owner-operators don’t take holidays. They start their business believing they will be in charge of their own holidays, but they find they don’t go on holiday at all. I met a woman who owned a chain of motels with her husband. They hadn’t been on holiday for five years. When I asked her why she got into the motel business in the first place, she told me it was for the lifestyle. Go figure!

If you pay yourself too little, work long hours, and don’t take decent holidays, you can feel resentful. Worse, you can fall sick and be unable to carry on. A high percentage of businesses fail (and by fail I mean they stop; the owner gives up) within five years of start-up. Disillusionment gets the better of them. They go into business to set themselves free and find themselves with a virtual chain around their ankle. Not surprisingly, they decide they don’t want to do it anymore. But that’s not going to be you, is it? Most people who fail to achieve financial freedom through their business do not have the right mindset. Let’s just take a look at a true story for a moment to illustrate my point:

The story of Julie and Fliss

I was having coffee with an old friend one day. Julie is an amazing lady who had started her first business and built it over 20 years until it was bought by a huge multinational group. She became wealthy and continues to build her wealth through angel investing and mentoring start-up businesses. She has a wonderful life. We discussed how special it was to be able to spend quality time with our kids after school each day and how we enjoyed helping other people learn to build a quality life through business. We got to talking about a woman we both knew. I’ll call her Fliss, for the purposes of this story. Fliss opened a business at the same time as Julie. She is a dress designer and opened up a little retail store in the town where she lived.

Twenty years later she still had that small shop and she was still making the dresses. Fliss was no better off financially and she still had to keep designing and making the dresses to sell in her shop. Of course, there’s nothing wrong with that as a life choice and as far as I know, Fliss is content in her life. I don’t want to appear scornful of someone doing something they love. If you’ve got a talent for design and you’re happy with a small retail shop in a small town, there’s nothing wrong with that – as long as you are aware that this is where you are at.

But what worries me with the owner-operator mindset is that Fliss, like so many other owner-operators, will wake up one day and won’t want to do it anymore. As much as she loves designing dresses, something will happen that changes her ability to live off its income, for health reasons or, more likely, because she’s lost the passion for it. The danger of not having a plan to sell is that she can end up with a business worth nothing to anyone else, meaning she’s stuck with it. What will she do for income when her desire or ability to make dresses is no longer there?

The freedom mindset

Let’s look at situations of these two friends. Why did Julie go one route and Fliss go another? The key difference was the mindset.

One knew she wanted a business she could sell and create a lifestyle where she never had to worry about money again. The other wanted to make pretty clothes. They both made their choice; probably without even realising they had done so. Fliss chose to employ herself in a job she enjoyed. She did not choose to build a business.

We make choices every day. The most important choice is one you may not have given much thought to – until now. Are you choosing to build a business that will pay you back or are you choosing to work for a living?

My book Liber8 your Business explores this question at length and gives you a practical 8 step process to follow if you decide that financial freedom in the future is something worth working for.

 

From the desk of Liber8me.  Business mentors and publisher of Liber8 your Business: The revolutionary business planning technique that will set every small business owner free.

 

Some frightening statistics about small business…

lemonade standI’m about to share some frightening statistics taken from 2013 census :
  • Out of 469,118 businesses, 439,920 had less than 10 employees
  • That’s 94%! 
  • 74% of these are deemed uninterested in or unsuitable for expansion
  • 55% self employed people are age 40 – 59
  • Average wage small business owners pay themselves is $40,000
  • What does this picture say to you?  To me is says we have an economy largely made up of small business owners, who are not paying themselves enough and have no plan for growth.  Many of these will hit retirement in the next 10 years, having worked hard in their business their entire life, and will not be able to sell it (no one will buy a business which is unsuitable for expansion).  This is a bleak picture for the business owner and for the economy.  I think it’s time things changed.
  • The two statistics I’d like to see change first are the % of business owners deemed uninterested or unsuitable for expansion, and the average small business owner wage being $40k.  Both can be changed with education and inspiration.  Firstly, there needs to be a movement to change attitudes.  From a small business being more like a low paying job, to a belief that your business is an asset – there to feed you long term wealth.  With some careful planning, a lot of drive and some expert guidance – many businesses can be re-engineered to enable growth.  But it does take a willing owner.  There needs to be a mind shift.
  • Secondly, there needs to be inspirational education and a support network that gives business owners practical steps to follow once they decide they are willing to go for it.My book Liber8 your Business, together with it’s companion workbook, have been designed more as an at home small business course than a book.  The goal is to change attitudes and provide tools to enable change.  I’d now like to see facilitated study groups all over the country, to help take the lessons out of the pages in and into practice in small businesses everywhere.
  • If you’d like to be part of this movement in any way, as a participant, as a facilitator or supporter contact me laura@liber8me.com

Have you created a business or a job? 5 tips for turning your small business into a big asset

looking for a jobMy mantra for small business owners is simple:  Don’t create a job, build yourself an asset.  When you own a business you have the opportunity right there in your hands to build something that can create financial security for you in the future.  You are going to work hard anyway, why waste this valuable time just paying yourself to do a job when you could be setting yourself up forever?

If you are serious (as I believe you should be) about building a saleable business, here are 5 success factors you can be thinking about right now:

1.  Set your end goal. Decide how much you want to sell it for and by when, and work backwards. In my book Liber8 your Business, I show a simple formula for working out your potential end value, with a link to the online calculator.

2. Name your buyer. It’s important to have a good idea who might want to buy your business in your early planning. Imagine spending ten years building a business you intend to sell only to realize you have created something nobody wants to buy. If you build a business with a buyer in mind, you have a much better chance of building something they really want.

A potential buyer could be a larger player in your industry looking to grow through acquisition. This growth might be regional – they want a presence in your city or town and it’s easier to buy you than start from scratch. It might be strategic – you have a smart product or service they could add to their existing infrastructure to create additional revenue streams. An example of this might be a large accounting firm buying a small book-keeping firm to add value to their client base. Your service or product could become a ‘nuisance’ to a competitor (read more on a strategy called ‘kicking sand in the gorilla’s face’ in my book, Liber8 your Business) and they buy your company to prevent it competing or to regain lost revenues. It could be a management buy-out, when senior employees raise the funds to buy you out. It could be a competitor of a similar size wanting to grow and willing to invest to gain rapid growth through acquisition. I’ve sold businesses to two types of buyer. A multinational bought my advertising agency and a local competitor bought my pet care company. My father’s photocopier business sold to his senior management team. A good friend has built three recruitment agencies. The first sold to one of the original partners, who bought out the other partners. The second sold to a multinational looking for regional representation in her city. The third is in its early days of growth and I’ll watch with interest who buys it (I have no doubt it will sell because I know the founders expect this and will build with this in mind). Another type of buyer could be a private equity group or even an individual who sees great potential in what you’ve built.

So who might want to buy your business? What are you building that could add huge value to someone’s offering? Now is the time to start thinking about these things.

3. Remove the dependence on you. To make your business attractive to your future buyer, it cannot be dependent on you. That’s a key message I want you to learn from this article:

No one will outright buy a business that’s dependent on its owner.

If the buyer takes you out of the picture and no business remains, they will either insist you stay in the business or they will walk away. So whatever your strategy is, whatever your end goal, whatever your vision for the future … it needs to not have you in it. I did that at my agency by making sure the clients loved the business but weren’t dependent on me. In the last few years, I hired two senior guys and put them in charge of our biggest clients, so my buyer could see the clients were not reliant on me.

4. Start building a team as soon as you can. I couldn’t afford to bring in those big guns until later in my business growth. I started by hiring people I could afford, with a couple of youngsters straight from college. I trained them to do things exactly the way I wanted. I call it ‘training your clones’ – teaching people to follow your example and do things your way. I kept building my team that way until we could afford to hire more senior people. And then we had to make sure we had a really strong culture to manage senior people.

5. Secure future earnings. Getting all our key clients on fixed-term contracts was another critical strategy that worked. They all had two or three year contracts so when the buyer looked at my business they saw a high level of spend committed for the next three years. This was an important lesson I learned from my businessman father. Remember I told you about his photocopier business and how he sold it and retired soon after his fiftieth birthday? One of the best secrets to success he shared with me was, ‘you’ve got to have a back end.’ To explain, he gave the example of his own business. While the sale or lease of each copier was worth a lot of money (especially in the 1970s when these huge machines were a relatively new addition to business productivity) the real value came from the additional contract that went with each machine. This locked the customer into buying all their ink, toner and paper for the life of the machine, as well as regular paid servicing – which meant that, for every machine sold, my father had income guaranteed for the next 10 years, enabling him to predict with complete accuracy his future income. You can see why this made by father’s business attractive for a buyer. They could see a guaranteed return on their investment. It made sense to me when I started my own business, and I hope it does to you too. It will get you a higher price when you come to sell!

   A business with committed future revenue that is not dependent on its owner to deliver that revenue is a business worth investing in.

 

You’ll find these 5 factors, and a whole lot of other ideas, tips, stories and exercises about creating freedom from business in my book – Liber8 your Business: The revolutionary business planning technique that will set every small business owner free.