I bet you have a clear sense of your goals over the next 1-3 years?

Whether they’re to grow your market through the number of client contracts and policies, increase your customer leads, put a new service into the marketplace, acquire a new property within your business, or add new team members….we typically have a sense of what we want to accomplish this year or over the next few years.

Knowing where we want to get to is key for effective goal setting.

But, how do we ensure we’re making regular progress so we don’t get half way through the year and realize how much time has slipped by - slowing growth?

Have you ever thought about what it would be like to be a ‘customer’ of your business?

To walk in their shoes?

You may use your own products and services but what I’m talking about is different. I’m talking about experiencing what they would experience.

How do you think your service delivery would stack up?

This is probably one of the most impactful exercises a business owner can do…

What’s not to love about your favourite customer?

Whether it's the fact they’re wonderful people to work with, provide you with much of your business, they pay on time or you simply look forward to your interactions together; whatever the reason, each time you do business with them, it’s a good day :).

And why not? I love it when business is fun and enjoyable.

But could working with your favourite customer put your business at risk…?

You’re working too hard to not have the profit you need.

You sell your products and services, but realize that after each month, you’re no further ahead.

Your bank account is dismal and there doesn’t seem to be much left to invest back into your company.

Does this sound familiar?

If so, you may be suffering from the profit conundrum.

This is suffered by those businesses who are selling, but not making any money.

This is no bueno.

If you’re not familiar with the 4 Levers of Profit, then you’re going to love today’s article.

Let’s dive in!

Create a business model that turns your company into a valuable asset.

The definition of an asset: property owned by a person or company, regarded as having value and available to meet debts, commitments, or legacies.

Research shows that the number of employer businesses with 1-99 employees accounts for 97% of businesses in Canada (source: GOC: Key Small Business Statistics 2021).

And 67.6% of all employees work for small businesses.

As employers and businesses that often bring innovation and social impact through their products and services, what would it look like if more of these companies survived into the next generation? What if many could sustain and continue to bring their innovation, social impact, and dependable products and services to future generations?

You've likely heard the adage that it’s far easier to cross-sell an existing customer a new product than it is to find a new customer. And if your goal is to grow at all costs, then cross-selling makes sense.

However, all of that sales growth may not do much for the value of your company. If you cross-sell your existing customers too much, it could make your business far less valuable.

When you cross-sell a customer so many products and services that they begin to account for more than 15–30% of your revenue, expect your value to drop. If a single customer represents more than 30% of your sales, expect an even deeper discount.

Customer concentration is one factor that makes up your score on the ValueBuilder assessment — it’s one of eight drivers that’s behind the research determining your business's value in an acquirer's eyes…

This is the seventh in the discussion of the eight growth drivers that generate value.

There are many ways to create loyal customers such as providing a valuable product/service and excellent customer service.

There’s another way that you can extend this value that will increase your customer loyalty - creating a model or offering, that solves your customer’s need so they buy what you have consistently.

Recurring revenue makes your company more predictable, extends the lifetime value of your customer, and ultimately makes your business more valuable. Valuable to you now and in the future.

I wrote a couple of weeks ago about how cash moving through your business is its lifeforce. It allows you to fulfill your mission, strengthen the business so it, your employees, and customers thrive.

Creating a recurring revenue stream is another way to bring cash flow into your business to create these automatic sales.

While there are many ways to do this, I’ll share how a simple service contract could be the place to start for many…

How do we turn disappointments in your business and leadership into a profound path forward that will lead us to future wins?

We’ve all felt it. The time when our customer didn’t come on board.

That moment where our idea fell flat in the boardroom and ultimately was glossed over.

That moment when our proposal wasn’t accepted.

That time when our manager didn’t seek our input on an important direction, when you felt you had been integral up to that point.

Instead of going to down the path, which so often might occur, of spinning out in a spiral of feeling put down, de-motivated, which then can lead into, ‘am I cut out for this?’ or ‘why does this always happen to me’ I’d like to make another suggestion.