An Introduction to Growth strategy for owner / managed organisations.

2. TODAY’S PROGRAMME
Jim Henderson
The Why, What, How of Business Growth
An Introduction to Growth strategy for owner /
managed organisations.

3. Accelerate Ayrshire
“The Business of Growth”
16th February 2017

4. Agenda – Approach to Growth
• Why ?
 Why bother ?
 Why now – timing ?
• What ?
 What does growth look like ?
 What’s stopping you?
• How ?
 Introduction to Growth Strategy
 Introduction to Capacity

5. Shirlaws Group
Supporting Private Enterprise on their Business Journey to..
Confidence to Change Courage to Invest Freedom to Choose

6. Agenda – Approach to Growth
• Why ?
 Why bother ?
 Why now – timing ?
• What ?
 What does growth look like ?
 What’s stopping you?
• How ?
 Introduction to Growth Strategy
 Introduction to Capacity

7. FTSE 100 – Trend 1 Year Back to Date
Brexit

8. Your Choice to Grow
Opportunity or Armageddon ?
How’s your mind-set? (Hold back or get on with it?)
What beliefs do you hold?
Those showing courage, confidence and innovation, always
win in times of great change

9. Agenda – Approach to Growth
• Why ?
 Why bother ?
 Why now – timing ?
• What ?
 What does growth look like ?
 What’s stopping you?
• How ?
 Introduction to Growth Strategy
 Introduction to Capacity

10. What Does Growth Look Like?
120k
240k
400k
600k
80k
750k

11. What’s Stopping You ?

12. Agenda – Approach to Growth
• Why ?
 Why bother ?
 Why now – timing ?
• What ?
 What does growth look like ?
 What’s stopping you?
• How ?
 Introduction to Growth Strategy
 Introduction to Capacity

13. Capacity
Capacity is the maximum
revenue available given
available resources today
Maximum

14. Run Rate
80% realistic capacity
40%
EffectiveOperatingZone
100%

15. Platform Strategy

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Platform Strategies
(fill the cup)
• Staff Training
• Product Training
• New database
• Management Systems
• Marketing plan
• Functional Structure
• Workflows – no bottlenecks

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Growth Strategy

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Growth Strategies

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Choice
Strategically there are only 2 things you can do with a business:
• Fill up the cup = Platform
• Get a bigger cup = Growth

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Not Aware of Capacity Numbers

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Are Aware of Capacity Numbers

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Controlled Growth

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One Step Ahead

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Strategy Planned Phases
1st Phase
2nd Phase
3rd Phase
4th Phase
PLATFORM GROWTH
(1)
(2)
(3)
(1)
(2)
(3)
(1)
(2)
(3)
(1)
(2)
(3)

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Capacity Summary
• Most businesses focus on turnover rather than capacity
• Turnover on its own tells you nothing
• Turnover in context of capacity tells you a lot
• Businesses who have increased their turnover but increased
their inefficiency, end up stressed
• Capacity planning gets you clear about how to grow

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Capacity Summary continued…
• Be aware of your Capacity and Run Rate Numbers
• Use those numbers to create a controlled growth plan
• Identify platform (and growth) strategies
• Businesses grow in cycles and work in ranges
• Businesses can get stuck in a range which is normal
• Income follows assets

27. Next Time – Growth Strategies
• Positioning
• Distribution
• New product or market
• Pricing and packaging
• Leverage (more of)
• Re-shape the Client Base

28. 19 February, 2017
Thank You
Jim Henderson– Shirlaws Group
E: jim.henderson@shirlawsgroup.com
M: 07817 745958

30. TODAY’S PROGRAMME
Jim Henderson
The Why, What, How of Business Growth
Questions?