The 2 Numbers that Predict Whether Your Business Will Grow ... or Not!
Arthur Cronos
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Oddly, there are two simple numbers that accurately predict whether your business will grow or will languish, struggle, or perhaps diminish. And it's is far more useful to know these numbers in advance of trouble, so that you can adjust the numbers, and take an active part in the ongoing growth of your business.
In this article you will find spelled out clearly, the uncommon factor found in almost all businesses who grow and prosper; and which is universally missing in the majority of small businesses who struggle and fade away.
Further -- as part of a test-project which my company is running -- for a limited time, qualifying owners of law firms (and some other businesses) can access a one-minute video that ... well, we'll get to that later ...
Shocking Fact:
Most Small Businesses are Losers
On one hand, of the hundreds of business-operators I have known, in many ways personally they are winners, admirable people -- in energy, in drive, in intelligence.
And entrepreneurs tend to be brilliant at their core technology. Mike the Ford mechanic is brilliant with troubled automobiles. Bob at TypoFinders.com is brilliant at editing grammar and spelling. My ex-wife Lori is brilliant as a professional fiduciary. And Margaret at Dos Geckos in Mt. Shasta makes mouth-watering tacos.
But the average small-business owner overlooks the marketing.
The common definition of business is to provide services and get money. Yet we focus only on half of this equation. The medical doctor spends years and and a fortune learning how to "provide services" and spends essentially no time at all learning how to "get money."
And this makes sense: When Mike first thought of his own shop, he pictured himself fixing cars, Margaret thought of making tacos. The attorney-to-be pictures himself in contracts and courtrooms; the psychiatrist pictures himself with patients. Not one pictured himself laying out advertising, planning Google campaigns, or training up a roomful of outdialing telemarketers.
They signed up to fix Fords, make tacos, win cases, help patients. Not for creating advertising, updating websites, or becoming salesmen.
It is also true that 50% of all businesses fail within two years, and 80% within five. And that most small businesses never attain growth, and most business owners struggle with money, with time, with life, forever.
The lack of marketing, and the struggle with failure to grow, are related.
A Huge Secret Hidden in Plain Sight
To make this clear, think for a moment about companies which have become very large: American Express, Burger King, Ford Motors, Bank of America, Dell Computers, Albertson's Grocers, Proctor & Gamble, Walt Disney Corporation, L'Oreal, Johnson & Johnson, and Time-Warner.
They all have two things in common: they bring in huge sums of money, and they invest heavily in marketing. And although advertising is only a part of marketing, think about the advertising that surrounds you. How do you know all these companies I mentioned? Odds are, a couple are companies from whom you never buy, yet you know their name, you know what they do, you know they're big. They're everywhere. They market all the time, everywhere.
Now a bit of contrast. Think about some business-owner you know, who struggles endlessly. If he's a friend of yours, perhaps he complains about market conditions, the economy, problems at work, the disloyalty of customers. And ask yourself: How much time, how much money, does he invest in the marketing side of business. How much time, how much money, does he invest in the "get money" side of the business equation?
Statistics reveal that your struggling-business friend markets very little. He invests very little time, and very little money; and the marketing he does is usually poor.
The Secret Inside Your Organizational Chart
The typical Organizational Chart has an Executive at the top, and on the next row there's Marketing, Administration, and Production divisions.
Usually we think about the "Org Chart" as a chart of people, or of functions. But let's reconsider this chart, and think about how much time, or how much money, is invested in each of the three divisions.
In the typical smaller business, Administration items like bookkeeping, janitorial, and getting office supplies is minor, and appropriate. Production activities like hiring-training, operating machinery, managing workers, staff salaries, production costs, supplies, or inventory ... this tends to be huge.
And Marketing items? Compared to Production, it almost doesn't exist. Where a company may spend $100,000 in production, they spend $3000 in marketing.
Two Numbers That Predict the Fate of Your Business: Will You Have Growth? Or Struggle?
Take a look at your Organizational Chart and make a quick calculation how much is spent on Production (providing your service), versus how much invested in Marketing (getting money). Compare the two numbers.
For most businesses the comparision is shocking. Marketing is a neglected step-child, at best sporadic, often triggered by outside forces, part of no organized plan, and nobody is in charge.
The disconnect -- the imbalance between Production and Marketing -- is profound. That's the problem. Only half of the business equation is being addressed.
What wonder then that the typical business does brilliantly at providing service, and poorly at getting money?
Need Some Help?
If you'd like to take a look at how your business may be out of balance, and what might close the gap, to jump-start growth again, feel free to contact me.
And, as part of a test-project, specifically for owners and managing partners of law firms (and some other businesses), here's a special offer that might help --
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If you've been thinking about expanding, if you've experienced struggle, if you've been embarrassed when colleagues ask how you market your business, if you've had to fall back on the old "Uh, we mostly get our patients by referral," when at the same time you wonder why clients never refer anyone ... then this is for you.
Of course, if you want to keep on struggling, finding "reasons" like lack of budget, no time, or you don't believe in advertising, then you can stop reading every word of this article. Because it's not working for you. Sorry, but that's the truth.
You see, it's really the other way around. Savvy business owners accept that the "get money" part is what makes the business work, what makes it possible to "provide services." And that the "get money" part deserves the careful planning, the skillful execution, and the right investment in money and time.
That's what gets results, and nothing else does.
Click this link to claim your place now ...
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