Edmonton Business Coach | Building A Business Take
Usually the first crack at it is usually not very good. You know, there’s a line that I heard once upon a time and it says, if you’re not embarrassed by your first product or service offering, uh, chances are you started too late
back and see. Oh Wow. I can be because it’s mad.
Hi, thanks for joining us for another episode of ask for spurl CPA. Today I’ve been a business coach. We’re talking about building a business, takes time again, Ebitda, business coach, building a business takes time. I have may here with me again, mate. Any plans for the summer?
Um, a lot of trips to just solely I can clear my head and when I come back to work I’m fresh. I’m ready to start everything and just be more ready.
Right on. That’s like all so, uh, the court that we have here today talking about building a business, takes time to Jim Collins, cool author of six books, Edmonton Business Coach books, including one of my favorite, uh, good to grade a. So it says, somehow over the years, people have gotten the impression that Walmart was just a great idea that turned into an overnight success. But it was an outgrowth of everything we’ve been doing since 1945 and like most overnight successes, it was about 20 years in the making. So, um, the, the statistic that I’ll have author wrote for you, uh, in terms of building a business, taking time is, you know, according to Forbes, 65% of businesses will be around for five years before they’re ever listed. So all the listings, you know, we’re looking at business listing, 65% of them have been around for five years before they get listed for sale.
Um, and you know, 50% of those business listings, businesses for sale, they’ve been around for 10 years or more. And according to Entrepreneur magazine, only 20% of all businesses that are listed for sale will actually ever sell. So you’re looking at the competitiveness of trying to sell a business. You know, most of the listings that you’re competing against and only 20% are going to sell. And most of the listings that you’re competing against had been a lot around for more than 10 years. So, and the story that we have here at business owners, you know, they’ve watched too many episodes of shark tank and dragon’s den and they think that that big cash flow is right around the corner, you know, six months after starting the business a year after starting the business. So mate, what are the questions do you think these business owners should be asking?
Well, they should be asking, is the initial service or product offering of most businesses wheat?
It usually is. Usually the first crack at it is usually not very good. You know, there’s a line that I heard once upon a time and it says, if you’re not embarrassed by your first product or service offering, uh, chances are you started too late. Um, so you know, it the first crack at it, you know, when you first launch, it’s not going to be perfect. It’s just not the way it works. Uh, chances are that your first product or service offering is not going to be that great.
And, well, the business owner normally have to invest additional time to make up for this.
Yeah. So usually that’s how you ended up keeping the customer happy. So even though the, the processes and the products and services aren’t that great, uh, but the Edmonton Business Coach owner is simply able to invest time to make up for any of those deficiencies and you don’t maintain that, that level of customer satisfaction until you start to get, develop a, uh, a product or service that can stand by itself.
Is this additional time from the owner invested, scalable?
No. So, uh, eventually you can only get so big at that, you know, the owner can, can only invest so much additional time to make up for the weaknesses in the service offering. Um, you know, there’s only 168 hours in the week. So, um, there’s only so much that they can do. Eventually they have to have, you know, systems and processes that the business can deliver a high quality of service that’s not dependent on the owner’s time or the illness. The Edmonton Business Coach can actually only get so big.
Will it take time to develop? And document repeatable processes to ensure quality.
Yeah. You usually, this is, you know, people think that that’s something that they can do in a couple of days or weeks or even a couple of months and those systems or processes are going to take years. Uh, and a lot of the only way to develop the really good systems and processes, you know, going back to your initial product service offering being, you know, would likely being weak. It takes that trial and error. It takes a, uh, putting in the practice of actually trying this and getting a certain result and then trying something else and improving on it all the time. Um, so in terms of, you know, taking time to develop the systems and processes that the, the quality of your service offering can be high. It’s probably going to take years of trial and error before you get it, where it can stand alone at a high quality, you know, with Oh, additional time for the Edmonton Business Coach owner.
Do most initial marketing system rely on the business owner’s time span?
Yeah. So, even when we’re talking about generating new business, most the, you know, the, the mechanisms that most businesses have in place to generate new business are completely dependent on the owner’s time. You know, how much networking can they do? How much can they reach out to their existing network? And they do any, any cold calling, um, you know, can they work for a reduced rate to try to, to try to ingrain them selves into, uh, you know, a certain customer. Um, so a lot of the things that new businesses are doing to generate business, um, you know, it, they’re not scalable. You know, they’re completely dependent on the owner putting in more time to get more clients. But ultimately at the end of the day, this is what it is. Eventually gonna run out of time and those activities aren’t scalable.
And how long does it take to implement a scalable marketing strategies?
Most of like the, the effective scalable marketing strategy. So we’re talking about ways to onboard and, uh, you know, attract and onboard clients that aren’t dependent on the Edmonton Business Coach owner’s time. Those are going to take like six months to a year minimum. Uh, and, and you know this. So in order for the, you know, we’re looking at how we’re going to sell a business, you know, how are we going to a, build a business that has a significant value. It’s going to take years because even if you know exactly what to do from the start, let’s say you didn’t have the problems with your, your systems and processes that somehow they were, they were, you magically got it great the first time. All of the systems that you’re going to have to implement to attract customers at a scalable way, those are going to take time to implement. And, and likely that’s going to take a year or so to implement a systems where you’re having a reliable stream of potential new customers that isn’t coming in because the owner spent more time.
And how can cash constraints restrict growth even if you have significant demand?
Yeah. So the other thing, sometimes there’s Edmonton Business Coach, they’ll, there’ll be acquiring clients faster than they can actually finance the projects. So, uh, if you have a service based business, if you get, you know, if you double your, your workload overnight night and let’s say magically that you actually have the right team, that doesn’t mean you have the cash in the bank to pay them a, whenever your workload gets up. You know, and most businesses it’s uh, you know, the costs go up first and the income starts to come in late or whether it’s 30 or 60 or 90 days. Um, so sometimes the projects will be too big for the, for the bank account you don’t, especially in, let’s look at a construction guy and if he has to actually complete the project and bill once a month, if he was doing $100,000 a year and projects and all of a sudden he has a million dollar project, well now that first month’s cost that he has the float or more than one, it’s what’s in his bank account altogether. So sometimes you don’t, even if you have the workflow again, and if you have the team to do it, sometimes you actually don’t have the financing to actually complete the work.
Are Companies that hire outsiders for key positions to scale, normally successful.
Normally that’s not the, the successful mechanism. A lot of, you know, myself, other entrepreneurial, we’ve always gotten to that trap of saying, Hey, when I get to that, this position, I can hire someone, you know, version 2.0 I self or it just someone who can come in and lead the charge so to speak. Uh, but that doesn’t work very well. He only in Jim Collins’ book, He, you know, he did the analysis of, you know, companies that had, uh, internally, you know, of, of companies that actually outperform the market over a long period of time. In 85% of those companies had internally promoted CEOs. So there’s a lot of stats to back up the fact that hiring people from the outside to put them in leadership roles are key positions that normally doesn’t work. So, um, you know, it takes a while to, uh, you know, to actually develop that talent
and what qualified a leadership personnel normally be a limiting factor to grow.
Normally that’s going to be one of them. So even if, uh, you know, you have the systems and processes so that you can actually execute your Edmonton Business Coach at a high level without, you know, I’m leveraging the owner’s time or you actually have scalable marketing initiatives that you have inbound leads happening without leveraging the owner’s time, you don’t. Now we have to get the, the leadership that actually can supervise the front line staff and that’s going to be a limited growth in most in more circumstances. And it’s a lot easier to bring on your front line, uh, lower level staff than it is to bring on people in the leadership position that are actually going to supervise and lead that charge. So normally that will be one of the key factors that’s going to limit growth.
Should you plan on developing leaders to take five years or more?
Yeah. So, um, you know, a lot of times it’s, you’re not, there’s no quick fix. You, you think you’re going to post that ad on indeed and someone’s going to come in, but you’re going to find out very quickly that they’re probably not, um, up to date on how you do things specifically in your Edmonton Business Coach. You know, the by nature, businesses succeed when they have differentiation factors and they do things different from their competition. So when you bring in someone who was working for one of your competitors, they’re not necessarily going to know how to execute the nuances of your business, especially in an in a leadership role. And you know, there’s always the risk of the congruence with culture. So you have to be looking at your frontline staff is at some point they are going to graduate into leadership positions. Eventually they’re going to lead the charge. Um, and it’s often that can be depending on the different types of industry that can be, you know, two, three, four, five years. So you’ve got to look at the people that are already in your, in your organization and say, how long is it gonna take for them to be ready for a leadership role? And you know, that’s gonna be one of your factors on how quickly you can grow.
Well, most business owners over estimate what they can accomplish in a year.
Oh 100%. Most busin Edmonton Business Coachss owners are going to drastically overestimate where their business is going to be one year from now. You know, they’re, they’re going to forget that, you know, it’s going to take a considerable amount of time to execute services at a high level because they don’t have the systems and processes in place. You know, they’re going to forget that sometimes some projects are going to be too big because they don’t have the cashflow, uh, that they’re not going to generate a whole, you know, a whole bunch of inbound leads, a prospective customers without leveraging their time. Um, and you’ll blow these things are going to, are going to limit the girl with Eugene the first year.
Well, most Edmonton Business Coach owners under estimate what they can accomplish in 10 years.
Yeah. A lot of times, although they, they overestimate what they can do in one year. They, they’re kind of underestimating what they can do in 10 years. So, you know, you start thinking to yourself the, you know, the thing was maybe leadership was one of the constraints and you know, it was one of your frontline staff, uh, waiting for to be ready. But you know, in five years you might have two or three of them ready. So although you didn’t have any of them ready in a year or two and that might’ve been a limited growth and in four or five years, now all of a sudden you have, um, you know, two, three, four lieutenants ready to go. Uh, so yeah, sometimes 10 years, you know, although we’re overestimating what can be done in one year, a lot of times we’re underestimating what can be done in 10 years. So I think that’s what we have for today. Thanks so much for joining us. Again. As always, we look forward to reading any comments that you have below so we can respond back and use your ideas for future videos and always please like and subscribe button so we meet. Can you deliver your tips on how to beat the odds of Edmonton Business Coach? Thanks very much.