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Growing Your Business
10 Ways to Ratchet Up Your Growth
Is your business stalled at a certain level? Looking to accelerate to the next stage of growth? Try these proven strategies from women who have achieved impressive growth in their businesses:
- Have a clear vision and value proposition. Be very clear about your goals and what value is being created for the customer. Because time is the most valuable commodity to women, Mary Aitken, Managing Director of Verity (msa@verity.ca), created a unique, 50,000-square-foot women's club in downtown Toronto to address all of women's needs - from health, fitness and beauty to networking and dining - affordably.
- Diversify your products/services. Keep in mind your core competency and look for opportunities that make sense. The President of Atchison and Denman Court Reporting Services, Carol Denman (carol.denman@stenographers.com), expanded her company's traditional court transcription services to include objective minute-taking for boards concerned about corporate governance.
- Tap into mentors or boards. Finding a business-savvy mentor to coach you and creating your own advisory board of skilled business people you admire can catapult your business to a whole new level. Vivianne Gravel, President and CEO of LIPSO Systems Inc. (vivianne.gravel@lipso.com), used both these strategies to reposition and grow her technology company and to help her attract venture capital to finance expansion.
- Get solid financial advice. Fully understanding your existing financial position is vital to ensuring that you are ready for expansion. Lynda Powless, Publisher/Editor of Turtle Island News (lynda@theturtleislandnews.com), consults with her bank manager to assess her financial situation before taking any major growth steps.
- Seek growth financing. Sources of growth capital can include friends and family, supportive suppliers, your bank, the Business Development Bank (BDC), angel investors and venture capitalists. Look at a growing business as if it is a new business when assessing the numbers, advises Verity's Mary Aitken (msa@verity.ca). Determine the capital investment, including working capital, estimate the timing of revenues and costs, develop a cash flow statement, decide if there is a satisfactory return and payback time, and determine if it can be financed, if you need partners and if there is room for debt and how much debt can be supported.
- Acquire a competitor or related business. This can allow you to expand your operation without reinventing the wheel. Lynn Hazlett, CEO of Primex Customs and Logistics Inc. (lhazlett@primexlogistics.com), purchased an asset trucking company and added a warehouse and storage facility to complement her customs business. Only six years old, Primex is now a fully integrated international logistics company and has been honoured as one of the Top 50 fastest growing companies in Canada.
- Network. Whether through industry events, business organizations or community activities, getting outside of your business to meet others will expand your contacts and lead to new business development. Kathryn From, CEO, (kathryn@bravadodesigns.com) and Shery Leeder, President, of Bravado! Designs Inc. attend trade shows regularly. "It gives us the opportunity to get in touch with new and existing customers." And they have built their own network of professional and personal mentors to whom they can turn for advice.
- Establish strategic alliances. Whether your business is small or large, developing strategic alliances can be a very effective and low-cost way to generate business growth. Deborah Sheppard, President of thedog8it! which produces organic dog treats (deb@thedog8it.com), found a non-competitive company in her area that targets similar accounts in the U.S. They now swap useful market information, use the same customs broker, share warehouse space in the U.S. and even combine orders to reduce shipping costs.
- Find a business partner. A like-minded go-getter like yourself with complementary skills and vision can keep you focused and take off some of the heat. Patricia Gibson, Vice President, Install-A-Flor Ltd. (pgibson@floorsplus.ca), grew the company from zero to its current sales of over $20 million, with her husband, Larry, as her business partner. "It's more difficult to fuel growth if you are totally alone and don't have someone to bounce ideas off."
- Expand internationally. Entering new markets will open the door to a whole new and potentially untapped customer base. A true pioneer of women in non-traditional fields, Wendy McDonald (bcbinfo@bearings.com) tackled many challenges to grow BC Bearing Engineers Ltd. from a single-location small machine shop in 1944 into a global group of companies, with over $200 million in sales. Over 60 years later, she still has a growth goal - to penetrate China next.
Strategies for Growth
A specialty coffee shop pioneer shares strategies that led her company to become a national retail chain.
"A passion for business and a clear vision will get you started down the path to growth," says Becky McKinnon, President, Timothy's Coffees of the World Inc. Becky presented her strategies for growth at a Step Ahead One-on-One Mentoring Program workshop in October 2004.
Since the company's establishment in 1975, Becky has been an essential part of Timothy's. As a partner to founder Timothy Snelgrove, she played an integral role in all aspects of the company's development and success. In 1985, the McKinnon family bought control of the company. It currently operates 220 retail stores across Canada under the Timothy's World Coffee, mmmarvelous mmmuffins and michel's baguette banners.
How has Becky managed to grow and expand the company's offerings? Here are some of her insights:
- Keep your eye on your vision. Things change and you need to change your strategy, but your vision should remain clear. Timothy's vision in 1975 was to provide fresh roasted coffee, and, while product offerings have expanded dramatically, the original plan remains intact today.
- Seek out information. Talk to lots of people, including other business owners and your suppliers, as you grow, but adapt what you learn to your own thinking - to what will work for your business and feels right to you.
- Remember that growth can take a lot of routes you don't anticipate. Timothy's originally sold whole bean coffees by the pound, not by the cup. The stores did a lot of sampling, so selling fresh-brewed coffee was a natural progression. Also, there was a spontaneous eruption of specialty coffee shops in North America in the mid 1970's, so the market was ready. One of the biggest strategic changes undertaken by Timothy's was the development of its own roasting plant in 1993 when its suppliers could not deliver fresh from the roast on a frequent basis, which is what Timothy's wanted. In order to stick to the vision of providing fresh coffee, Timothy's chose to manufacture its own.
- Tune in to your customers. As people's taste and expectations evolved, Timothy's became more of a café. You can be successful even if your strategy has to change
- Be cautious. While Timothy's looked at franchising early on, it was not until 1997 that the company was ready to grow and expand through franchising. Currently, Timothy's is 90% franchised.
- Research. Timothy's uses focus groups. That's one way it became apparent that customers wanted an atmosphere that included couches and fireplaces.
- Get involved with associations. Industry associations allow you to develop your knowledge and contacts. And joining associations of other business owners will give you the chance to discuss things you may be struggling with. Becky has served on the executive of numerous foodservice industry associations and also was a mentor in the Step Ahead program that matches successful female entrepreneurs with women interested in growing their businesses.
- Grow by offering peripheral products or services. Timothy's expanded into wholesale sales from the roasting plant to office and other foodservice operations.
- Develop partnerships and alliances. Cross-promotions, contests and co-branding can extend your marketing budget. Timothy's has developed partnerships with DKNY, Continental Airlines Cineplex Entertainment Theatres and The Bay.
- Be open to opportunity, but not subject to the whim of everything that comes your way. Look for a strategic fit as you expand. Timothy's acquisition of mmmarvelous mmmuffins and michel's baguette was a natural evolution into the bakery business.
- Hire the right people. As you grow, find employees who are comfortable with change and working in large organizations as a team, not in isolation.
- Be honest with your banker. Communicate regularly, relaying both the ups and downs of your business growth.
Marketing Tactics for Growth
Twelve cost-effective ways to market your business.
Raising the profile of your company is invaluable to building your bottom line,
and there are a myriad of ways to market. Debbie Ross, President, The Women's TravelNetwork.ca (www.womenstravelnetwork.ca),
shares some tried and true strategies.
1. Network Effectively and With Integrity
- Networking is one of the most effective ways to raise your business profile.
Clearly define your networking goals: do you want to establish contacts,
establish collaborations, establish new business, and/or build relationships
that build business opportunities? Then get out there and form alliances.
2. Publish a Professional and Informative Newsletter
- A newsletter is a popular promotional tool that is an important part of a
client communication strategy. It can add value to your client relationship,
generate referrals and profile your products/services and expertise. You can
refer to newsletter templates at www.microsoft.com
for assistance. Provide valuable content, send it out at least quarterly,
and seek the help of a marketing professional if you lack the time or knowledge.
3. Advertise in the Media: TV, Radio, Print
- Generally speaking, print media produces more response than other types of ads,
but be prepared to spend money on a long-term campaign. Tip: track the response
rate from one-time ads, giveaways or discount coupons to have a tangible idea of
your progress.
4. Undertake Public Relations
- An organized PR campaign can be a key factor in building the profile of your
business and can be more effective than paid advertising. Create a PR kit and
look for opportunities - target community papers, radio and TV shows that may
have an interest in your business. Send copies or reprints of stories featuring
you to your customers. Look for opportunities to present or speak at events in
your industry.
5. Choose the Best Marketing Materials
- Identify the marketing tools that are right for your business and develop a
practical, cost-effective action plan. These can include brochures, direct mail,
flashcards/postcards, Yellow Pages. Include testimonials or case studies in
your marketing materials if they are relevant to your business.
6. Conduct Presentations and Seminars
- Data shows that education-based marketing is one of the most effective ways to
sell to clients and prospects. A presentation allows you to interact with customers
and industry contacts, demonstrate your expertise and advertise your business.
Remember to be brief and to be interesting and educational, rather than too heavy
or serious, in your presentation. Joint ventures with non-competitors are a
cost-effective and less onerous approach to organizing seminars. At conferences
and trade shows, offer to speak to become known, rather than simply donating
something for the delegate bags.
7. Participate in Trade Shows
- Trade shows have become a trend in recent years. The goal is to get your name
out there - but don't expect direct business immediately. A trade show is good
for lead generation since many prospects are willing to stop and ask questions;
ensure good follow-up.
8. Host Lifestyle Events
- A lifestyle event (eg. golf, cooking classes, wine-tastings) is fun and a good
way to build relationships since people will remember you. It shifts the focus
from a purely business-oriented topic to one of interest to your clients or
prospects.
9. Have a Website
- An internet presence is expected in today's technological age. Consumers report
that they often like to research a business before they call to enquire about
products/services. Remember to promote your web site - include it in all promotional
materials, market it via e-mail and postcards, and consider reciprocal links with
other related sites.
10. Get Involved in Your Community
- Community involvement shows your commitment, sincerity and concern about the
community you live/work in and is an excellent way to build a local profile.
Participate on a committee, volunteer your time, or get involved in an organization
or cause that you are interested in and believe in. Focus on building relationships
rather than telling people what you do.
11. Forget Cold Calling
- If you are not keen on cold-calling, consider "warm" calling. Send a newsletter,
brochure or direct mailer to a prospect and follow-up with a phone call.
12. Build Relationships
- Building relationships with clients, prospective clients, suppliers, colleagues
and other professionals is really what business is all about. Make referrals
(remember, "give before you receive") and build a network of professionals that you
can trust. Referrals are the most cost-effective marketing tool. Host an event,
such as a breakfast or cocktail party for your network of professionals, have them
contribute to your newsletter and refer them to your clients and friends. The point
is to share resources.
Forming Successful Strategic Alliances
Learn the fundamentals of striking up alliances for growth and profit.
Robyn Henderson, CEO of Networking to Win (www.networkingtowin.com.au), knows that networking is not only necessary in achieving business success, but is also a valuable life skill. "It's not just something you do when you want something," says Robyn. The most successful strategic alliances, whether formal or informal, stem from networking relationships that are based on trust. "Networking is a way of thinking about others, not just about yourself. It's a mentality that there is plenty for everyone. It's about connecting other people - people who come along your path in life, with the firm belief that you will gain somewhere down the road."
3 Core Beliefs of Networking:
- Expectation - do something without expecting anything in return.
- Abundance - there is plenty out there for everyone. People are suspicious of this belief, especially during difficult times. Trust the belief - the pie is as big as you want it to be.
- Reciprocity - what you give out comes back tenfold. Others will help you do the same.
Networking Hinges on Two Things:
- The quality-not the quantity-of your conversations. Instead of 'working the room', have quality conversations with just a few people.
- Your ability to be present in the moment. Be attentive and respectful.
There are three types of referrals. Aim to give one a day:
- Low key referral - giving out the name of a good restaurant or movie.
- Mid level referral - giving out the name of your printer to someone who needs business cards prepared.
- High key referral - giving out the name of someone who wants 500 widgets to a client who makes widgets.
Networking Myths:
- Networking is about handing out business cards at events and 'working a room.'
- It's a soft skill, a feminine task.
- Men do it better than women.
- It requires a huge infrastructure with a database that's cross-linked.
As mentioned, the most successful strategic alliances, whether formal or informal, come from networking relationships that are based on trust. Below are some fundamentals to keep in mind when forming 'formal' strategic alliances:
- Look for like-minded partners with similar habits and values. It will be more difficult to align with someone who is a heavy smoker and always late, if you are a non-smoker and punctual.
- Be clear on your desired outcomes. It is not always about money; it could be about a third-party endorsement or a higher profile for your emerging company. Don't be a 'prima donna.' It is rare to be handed a large project from someone who does not know you. Sometimes that first, small project is a test . . . and, if you do well, it leads to bigger things.
- Never assume anything and be sure your communication is open and honest. The more people you form an alliance with, the tougher it becomes to get things done. For example, three or four people is perfect for me. Within 48 hours of our initial meeting, I send out a report of its outcome, along with details on the money and time needed to complete the project, with a note that says, "Please put this as an urgent priority to read within 72 hours. If you disagree with any of it, let me know urgently and I'll change it." Then, if I have not heard back within the allotted time, I can assume all is OK.
- Set specific timelines as well as trial timeframes. Whether you're the 'driver' of the project or not, suggest trial timeframes to see who is serious. If a partner is perfect but can't deliver, then it's no good having her or him on the team. Beware of the 'cowboys' who are all hype and no substance. Avoid the people who promise big. Perform a test run on a small promise before moving ahead. If you cannot honour commitments yourself, either change your behaviour, or only take on what you can manage. If you have other priorities and do not want to become part of an alliance, let people down gently. Give them a personal call (not an e-mail), don't burn bridges, and be clear and open in your communication.
- Get it on paper. Keep good records and clarify everything in writing - either in a contract or letter of understanding. Take notes at meetings or have them recorded and document all action taken. It's also important to allow for exit clauses. Decide upfront - before anything goes wrong - on an exit strategy that will suit you both. It's better to lose a partner in the early stages than to lose your good name in the marketplace.
Armed with this knowledge of how to form successful strategic alliances, the next step is to get out there and actually connect with people. But, before putting theory into practice, here are a few last-minute points to remember:
- Know what you want. The more specific you are about your goal, the more chances you have of achieving it.
- Know who's out there - the people within your circle and on the periphery - and identify the connections. Remember, if an alliance is not win/win, it won't work!
- Know how others can help you. A small favour you did for someone last year can be significant in asking for help now. Remember, none of us work alone; it's impossible to do it by yourself.
- Know the odds. The more total effort you expend, the more chances you have of success. Effort equals time, energy and sometimes money as well.
- Know what to offer. Identify the weaknesses in your clients' businesses and how you can generate referrals that will help. It's about what you can offer to your clients; know your skills and worth.
For more of Robyn's tips on how to form strategic alliances, check out page 8 of the 2003 Spring/Summer issue of Champions
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