Shirlaws Client Conference 2012: Building Your Equity Storyboard
Mon, 19 November 2012
How do you choose which business model will work for your business?
You can always find new customers in a booming economy when it's not too hard to grow through a focus on sales and marketing.
But growth is hard in today's flat market. With fewer new customers around, the cost acquiring them has even become higher. Everyone is restricting their spending and it seems traditional sales and marketing approaches are no longer working.
An alternative to the P&L business model
The business model achieving most growth in today's flat economy is asset-based rather than P&L-based.
Moving to an asset model is the best strategy for many P&L businesses over the next five years. We are already showing clients how to grow their companies by extending their business assets rather than sticking with a traditional approach.
How does an asset-based business differ from the traditional P&L model?
Most management teams are busy trying to sell more of their current offers. For example, a publisher will be focused on selling more books. When times get tough management is likely to start pressing the company's sales people; 'Sell harder... we need more sales!'
An asset focus takes a fresh look at the heart of the company. Specifically one vital asset is often taken for granted - intellectual property (IP). Many companies fail to fully appreciate their IP, which means they are not exploiting its potential.
Instead of asking 'How to sell more products?' the IP question becomes 'What are we really good at?' The answer to this second question helps a management team focus on what makes the company successful - its fundamental IP. Recognising business assets in this way enables management to create innovative and successful asset extension strategies.
Think yourself into an asset business
Assets are not always immediately obvious and an additional question to 'What do we know' often helps - 'Who do we know?' The management team in the publishing example above could use these questions to explore their business assets. In creating new strategies to extend them, management would discover the potential in their existing IP - in this case marketing. In this exercise, management often come to recognise something they hadn't appreciated before. What else could they do if they thought of themselves as a marketing company instead of a book seller?
Reveal your hidden assets
Growth in a flat economy is almost impossible using approaches that work in boom times. Revealing your core business asset, and then extending it, is a more successful growth strategy in today's flat market.
Join the Shirlaws team at our 2012 Annual Client Conference: Building Your Equity Storyboard. You will learn how to build your core business assets to give your company a perfect lift for the current W-shaped economy recovery.
Darren Shirlaw will be presenting 'How to shift your business to an asset model' at the conference on Thursday 22nd November 2012, the Grove Hotel, Hertfordshire
If you cannot make the date then Follow the Shirlaws Client Conference Nov 22nd and 23rd on Twitter at #ShirCC12
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