A presentation by Ron Schalkwijk with support from CEDA ... · A presentation by Ron Schalkwijk...

Strategies to Survive and ThriveA presentation by Ron Schalkwijk with support from CEDA, Regional Business Partners Network and The Local Business Network

Game Plan – Strategies to Survive and Thrive

• Introduction - What are Optimisation Strategies and why use them?• The Optimisation Ladder• Margin Optimisation• Productivity Optimisation• Getting Started and Getting Help

What is Optimisation?A process of looking at the three key areas of business where money is made or lost

• Margins and Financial Management• People and Systems• Sales and Marketing

And looking to apply a process of continuous regular small improvements. The Local Business Network has been using these strategies with literally 1,000’s of businesses across Australasia with great effect for many years. We continue to improve and develop these strategies, tools and methodologies to meet the changing needs of business owners. To borrow a phrase we practice what we preach.

What is Optimisation?

Why Optimisation?

• You are working on areas of your business that are within your control

Why Optimisation?

• You are working on areas of your business that are within your control• These strategies are effective in any part of a market cycle

Why Optimisation?

• You are working on areas of your business that are within your control• These strategies are effective in any part of a market cycle• Most business have room for optimisation/improvement

Why Optimisation?

• You are working on areas of your business that are within your control• These strategies are effective in any part of a market cycle• Most business have room for optimisation/improvement• Typically can have immediate impact

Why Optimisation?

• You are working on areas of your business that are within your control• These strategies are effective in any part of a market cycle• Most business have room for optimisation/improvement• Typically can have immediate impact• More predictable outcomes

Why Optimisation?

• You are working on areas of your business that are within your control• These strategies are effective in any part of a market cycle• Most business have room for optimisation/improvement• Typically can have immediate impact• More predictable outcomes• Most important of all optimisation strategies stops money going out

the backdoor and re-directs it straight to the bottom line

Optimisation Ladder – Working on business in the right order

Optimise Margins

P Up

C Down

D In

I’ll lose sales if I put my prices up!Probably, but did you know:If your GP is 35% and you increase prices by 6% your sales would need to drop by 15% before your profitability is affected. Or if you increase prices by 10% the sales would need to drop by 22% before there is an impactHow about If your GP is 55% and you increase prices by 6% your sales would need to drop by 10% before your profitability is affected. Or if you increase prices by 10% the sales would need to drop by 15% before there is an impact.

Are you discounting to get business?

At a 35% GP a 6% average discount requires you to increase sale by 21% to retain profitability. Likewise a 10% average discount requires you to increase sales by 40%. How about a 55% GP? A 6% average discount requires you to increase sales by 12% to retain profitability. Likewise a 10% average discount requires you to increase sales by 22%. Does a discount really pull in that much extra business ?

What if you add client value?

Do you think you could increase your prices if you give the client more value?

Most likely but how do you add value?

The Value Proposition

The Value Proposition

The Value Proposition

Optimise Productivity

There’s a saying

“The best thing about owning your own business is there’s no Boss …

Optimise Productivity

There’s a saying

“The best thing about owning your own business is there’s no Boss …

The worst thing about owning your own business is there’s no Boss!”

Optimise Productivity

The good or bad news, depending on how you want to take it is, Productivity optimisation starts with you.

S Covey – The 7 Habits of Highly Effective People

Optimise Productivity1. Read the Secret Recipe

(www.tlbn.co/palmerstonnorth then select freestuff - top left)

2. Complete the self assessment productivity checklist

3. View the productivity quick fix video

4. Work out your magic numbers and discuss with staff

5. Review/discuss magic numbers with staff regularly

Keeping Score – Getting Work In

Keeping Score – Getting Work Out

The Power of HMW

H M W

The Power of HMW

How M W

The Power of HMW

How Might W

The Power of HMW

How Might We?

Optimise Productivity

Getting Started – The 72 Hour Rule

Getting Started

• My recommendation to you is within the next 72 hours • Block out a minimum 30 min regular session in your diary to work on your

business if you don’t already do this, increase it if you can• Make a start on completing the checklists in the Secret Recipe

(www.tlbn.co/palmerstonnorth then select freestuff - top left)• Watch at least one Quick Fix Video – same link as above• Pick a priority and make a start

• Reach out to your CEDA Business Growth Advisor or to me 021 0886 3379 if you need a helping hand

Thanks and any Questions?

Thank you for taking your time to attend, I truly hope this has been well spent and that you have gained some value from our time together today.

Ron Schalkwijk021 0886 3379

National &

Regional Networks

Visit regionalbusinesspartners.co.nz to register for support