This Week@Work there are fundamental differences in the design and structure of a business when it starts, to when it needs to ramp up growth, and to when it is ready to scale for next level growth. As the business owner you have to lead these changes, while still running the business.
Scale your own business by protecting and growing your clients’ businesses
Distinguish your firm as a scale up champion by both protecting your clients against risk and supporting their growth.
Your private business clients have probably invested everything in their business: money, time, energy and sacrifice. They tend to be so focused on running the business, they don’t step back to look out for threats and opportunities.
Join us for an insight and networking session to gain perspectives on three critical issues which any business owner needs to have planned for, and seldom considers until it it’s too late:
Gary brings a set of experiences from legal, to start up, through to the successful sale of his company through an MBO, to help business owners scale and grow towards an exit or to succeed the business to the next generation.
Neil is in his 30th year in financial services, most of that as an Independent Financial Adviser. Latterly with a focus on helping business owners reduce their tax bills, look after their money and protect the things that are important to them.
Maria has >37 years’ work experience across Banking, Financial Services and Estate Planning. Maria qualified as a Financial Advisor in 1992 and has a plethora of experience working for large international corporations.
After establishing Wills @ Home in 2009, Maria completed the Society of Trusts and Estate Practitioners (STEP) Advanced Certificate in Will Preparation for England and Wales. Maria’s estate planning knowledge and robust financial background allows her to aid clients in making informed decisions when planning their Wills, Trusts and Lasting Powers of Attorney.
Gain perspectives, insights, actions and connections with growth-minded business owners while you build an actionable CEO business battleplan to scale, grow and secure the value of your business as you walk out of the door.
For 15 years, Aurik has partnered with over 3 000 businesses to deliver average annual growth rates of 28.9% and average EBIDTA growth of 32.4%
Join us on 05 April 2024 to meet, greet, engage and emerge with insights, strategies, tactics and approaches to tackling the biggest impediments to business growth and value.
Facilitated by Pavlo Phitidis, he will challenge you on your business, and inspire you with real stories of business owners like yourself, who are getting it right.
As an entrepreneur and investor, Pavlo offers over 25 years of direct experience in conceptualising and building businesses across three continents. He has developed and brought to market business assets in excess of $450m through a combination of business start-ups, turnarounds, sales and acquisitions. Using his hands-on experience, business capabilities and relationship networks, he continues to support the growth of business owners through Aurik , a venture capital business growth service.
Pavlo is a regular media commentator, an international speaker on business growth and author of the best-selling, Sweat Scale $ell as well as his newest title: Reset Rebuild Reignite.
Achieve an Extraordinary Exit with Aurik & STS Capital
94.6% of businesses started, fail to sell. A weak exit or hard closure of your company robs you of the opportunity to monetize your legacy.
Aurik and STS Capital have partnered to ensure that your business not only achieves a successful exit, but ensures your legacy through a strategic exit.
Aurik is a business growth platform that works with established business owners & their teams to build their business to deliver growth & capital value.
STS Capital are the expert guides that enable you to sell strategically to the people that buy strategically.
Join Aurik & STS Capital to understand how this powerful partnership can ensure that your business is built and positioned for an Extraordinary Exit.
1.3% of companies can survive without their founders. Businesses are not bought. They need to be built to be sold.
Increasing your productivity should be a key focus as a business owner. It means you leave nothing on the table, maximizing your value all the time.
Pavlo discussed the difference between productivity and efficiency, and how to calculate your business’s productivity in this podcast from The Money Show:
Increasing your productivity should be a key focus as a business owner. It means you leave nothing on the table, maximizing your value all the time.
I recently met a manufacturer in the cosmetics and homecare industry. They make creams, ointments, soaps, and the like.
Looking to exit, a valuation of $20m had been offered and they wanted a view.
Their stunning, clean factory glistened with shiny machinery and equipment and a professional team gleamed with pride. The business owner felt that they could do better than the offer. We got to work.
After a day, we discovered that the business was running at 46% of its productive capability. After another day, we learned that the business enjoyed an 87% efficiency indicator.
What does this all mean?
Efficiency is about doing the same with less, while productivity is about doing more with the same. They are miles apart. Closing the productivity gap would add another $15m to the current offer based on the same valuation multiple. What’s best, is that I could be done in just 2 short years.
How to calculate it?
Productivity measures the gross value added per worker
Productivity = turnover – consumption costs [(raw materials used in the production process + energy and materials + water + rates and taxes + consumables and packaging) + (services including sub-contractors + plant and equipment hire + tech, marketing, HR, accounting services + rent)]
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Divided by workers [owners and employees all active in the business]
How to get it right?
Pavlo identified the 5 biggest issues threatening the survival and growth of established business owner, due to Covid and the challenges of lockdown:
He has already shared strategies and remedies for the first 4 and now talks to the last concern – Overcoming anxiety in order to set strategy for the year ahead. Listen to these in the podcast or read on for the key takeouts:
A lot of business owners are looking for a path of action, to simply tackle that anxiety.
What lies ahead is an extended period of uncertainty around Covid. Pavlo pointed to the time it takes to vaccinate people, when the vaccine becomes available – it is as slow as 4 people per hour, which means it will take a very long time for any vaccination programme to become nationally effective. As always, he reminds us to Expect the Best but Plan for the Worst!
The reason action it is important is because it puts you in control. Taking a view and acting to build your business towards a destination, despite uncertainty offers you a number of benefits including:
When the lockdown happened, many people didn’t invest in growth, they learnt to bake bread and waited for it to pass. It was crazy, because for a business owner, the way you behave now, must build toward something in the future. At all times.
The word comes from lædan, which means leading from the front, If you don’t lead in your business, who are your team supposed to look to?
So long as it’s directed, then over time it’s no different to compound interest and investing: it builds mass, and momentum.
It is so important to be growth mindset oriented all the time so long as you have control over the pedal, accelerator, steering wheel and rudder of your business. If you are, it creates a cultural mindset in the organisation that the whole team orientates around, and this puts you at the front of the market.
Pavlo used an analogy of someone wanting to cross the highway. A BUSY highway. As a pedestrian standing still, all you see is a stream of fast moving cars. Whereas if you are in motion in the traffic – you see the gaps.
If you don’t care, no-one else will, and if you have invested everything in that business, it is fundamental that you get out of the headlights and find a strategy to act.
In the next discussion, Pavlo will speak to the three strategies that he sees as critical to adopt to get you and your business on a positive trajectory to growth.
Starting this Global Entrepreneurship Week, Reset, Rebuild and Reignite your business to win in the new year and beyond.
Join business growth specialist and author of Reset Rebuild Reignite, Pavlo Phitidis for a roundtable discussion on how to build a business that is not only resilient to crises, but takes advantage of the changes that they present.
Pavlo will be joined by Brent Lindeque, The Good Things Guy, whose mission it is to find the positives amid the negative. Pavlo and Brent want to discuss resilient mindsets that can turn challenges into opportunities, and they want your stories to unpack.
Tell us what you did to survive the Covid lockdown – or any crisis that faced you or your business – and you could earn your seat on the panel to discuss your challenges and opportunities. Or just register to listen to the discussion and learn from those who have endured and come out winning!
The discussion will take place on Wednesday 18 November 2020 at 12h00
It forms part of Global Entrepreneurship Week, and Bargain Books is offering 25% off all copies of Pavlo’s books: Sweat Scale $ell and Reset Rebuild Reignite for the week, 16 – 22 November.
Register HERE
We spend years building a business to generate economy for ourselves. Mostly, we are undercapitalized and learn to do things ourselves. It becomes a habit. Then, of a day, we decide we want out. Or circumstances change and we want out. This is brand new to us despite the 10-20-30-40 years of investment work in our businesses. All your experience is in generating an income through your business, you have no experience selling it.
Understanding your exit roadmap early will serve you well. Listen to this podcast of Pavlo Phitidis’ discussion about business exit planning with Bruce Whitfield on The Money Show on 702 and CapeTalk:
94.6% of all businesses started, fail to sell. Even the well-established ones. Think of it like a share you would buy on the stock exchange – what would you want from it?
You want to earn dividends each year hope, and when you are ready to sell it, you want to be able to sell it – for a capital gain. Your business is the same, it needs to demonstrate to a potential buyer the following:
Think of your potential buyer as a customer: That buyer needs to have a problem solved and different buyers have different problems, different skills and competencies.
Identify who the most likely kind of buyer would be for your business, and think about what they would want, and how you should build your business to suit their wants and needs.
It is very rare to get an outright cash offer for your business. Pavlo shared the story of an American business owner he worked with, who got this right. He did medical assessments for insurers and over a period of time he realized it wasn’t scalable as he had to do each patient visit. So he harnessed technology through Amazon, Instagram, Facebook, Google and used all of that data to create a risk profile for individuals, which he provided to the big insurers. When he was ready to sell he got a once-in-a-lifetime offer of $180million. But that was extremely rare. Most of us will not secure such a simple payment.
So who is buying what?
This leaves a no-mans land between around R25 million and R50 million where there is no-one who wants to or can buy your business. And it’s important to know that, as you grow your business towards an exit
