How (and why) to Identify Opportunities for Growth!
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Does size matter and is growth important? In this webinar Kevin will take a look at both these questions and then take you through a simple but effective framework for identifying opportunities for growth with the highest potential and least risk. There is a link at the end of this deck to the associated blog and webinar recording Identify Opportunities for Growth ! How to
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Transcript of How (and why) to Identify Opportunities for Growth!
Does size matter and is growth important? In this webinar Kevin will take a look at both these questions and then take you through a simple but effective framework for identifying opportunities for growth with the highest potential and least risk.
There is a link at the end of this deck to the associated blog and webinar recording
Identify Opportunities for
Growth!
How to
How (and why) to Identify Opportunities for Growth!
Kevin Brent
“If business doesn't grow, it dies.”Washington Business Journal
“What multiple of your earnings did the offer represent?” Q
Comparing average multiple offered
Average multipleImpossible
Very DifficultFairly Difficult
Fairly EasyVery Easy
0 1 2 3 4 5 6
3.762.94
3.693.73
3.984.56
Sellability Tracker Q2 2015. Copyright 2015 ValueBuilderSystem.comPresented by The Value Builder SystemTM
How Easy Would It Be To Accommodate 5 X Demand?
A buyer is buying your future stream of profits
1. How much profit will your business generate in the future?
2. How reliable are these estimates?
Net Present Value – No Growth
End of Year Pre-Tax Profit 15% Discount1 £100,0002 £100,0003 £100,0004 £100,0005 £100,0006 £100,0007 £100,0008 £100,0009 £100,00010 £100,000Net Present Value
Net Present Value – No Growth
End of Year Pre-Tax Profit 15% Discount1 £100,000 £86,9572 £100,0003 £100,0004 £100,0005 £100,0006 £100,0007 £100,0008 £100,0009 £100,00010 £100,000Net Present Value
Net Present Value – No Growth
End of Year Pre-Tax Profit 15% Discount1 £100,000 £86,9572 £100,000 £75,6143 £100,0004 £100,0005 £100,0006 £100,0007 £100,0008 £100,0009 £100,00010 £100,000Net Present Value
Net Present Value – No Growth
End of Year Pre-Tax Profit 15% Discount1 £100,000 £86,9572 £100,000 £75,6143 £100,000 £65,7524 £100,000 £57,1755 £100,000 £49,7186 £100,000 £43,2337 £100,000 £37,5948 £100,000 £32,6909 £100,000 £28,42610 £100,000 £24,719Net Present Value
Net Present Value – No Growth
End of Year Pre-Tax Profit 15% Discount1 £100,000 £86,9572 £100,000 £75,6143 £100,000 £65,7524 £100,000 £57,1755 £100,000 £49,7186 £100,000 £43,2337 £100,000 £37,5948 £100,000 £32,6909 £100,000 £28,42610 £100,000 £24,719Net Present Value £501,878
Net Present Value – 20% Growth
End of Year Pre-Tax Profit 15% Discount1 £120,0002 £144,0003 £172,8004 £207,3605 £248,8326 £298,5987 £358,3188 £429,9829 £515,97810 £619,174Net Present Value
Net Present Value – 20% Growth
End of Year Pre-Tax Profit 15% Discount1 £120,000 £104,3482 £144,000 £108,8853 £172,800 £113,6194 £207,360 £118,5595 £248,832 £123,7146 £298,598 £129,0927 £358,318 £134,7058 £429,982 £140,5629 £515,978 £146,67310 £619,174 £153,050Net Present Value
Net Present Value – 20% Growth
End of Year Pre-Tax Profit 15% Discount1 £120,000 £104,3482 £144,000 £108,8853 £172,800 £113,6194 £207,360 £118,5595 £248,832 £123,7146 £298,598 £129,0927 £358,318 £134,7058 £429,982 £140,5629 £515,978 £146,67310 £619,174 £153,050Net Present Value £1,273,207
• Highest Opportunity
• Lowest Risk
Based on ‘Scaling Up’ by Verne Harnish
The Ansoff Matrix
The Ansoff Matrix
Existing Markets
The Ansoff Matrix
Existing Markets
New Markets
The Ansoff Matrix
Existing Markets
New Markets
Existing Products/ Services
The Ansoff Matrix
Existing Markets
New Markets
Existing Products/ Services
New Products/ Services
The Ansoff Matrix
Existing Markets
New Markets
Existing Products/ Services
New Products/ Services
Existing Markets, Existing
Products
The Ansoff Matrix
Existing Markets
New Markets
Existing Products/ Services
New Products/ Services
New Markets, Existing
Products
The Ansoff Matrix
Existing Markets
New Markets
Existing Products/ Services
New Products/ Services
Existing Markets,
New Products
The Ansoff Matrix
Existing Markets
New Markets
Existing Products/ Services
New Products/ Services
New Markets,
New Products
The Ansoff Matrix
Existing Markets
New Markets
Existing Products/ Services
New Products/ Services
Existing Markets, Existing
Products
Existing Markets,
New Products
New Markets,
New Products
New Markets, Existing
Products
A Simple Business
Existing Markets
New Markets
Existing Products/ Services
New Products/ Services
A Simple Business
Existing Markets
New Markets
Existing Products/ Services
New Products/ Services
Selling apples to
Passers-By
A Simple Business
Existing Markets
New Markets
Existing Products/ Services
New Products/ Services
Bulk discountsSign at the end of
the roadFlyers to
neighboursRepeat order
serviceEtc.
A Simple Business
Existing Markets
New Markets
Existing Products/ Services
New Products/ Services
Apples to shoppers in the High St.
A Simple Business
Existing Markets
New Markets
Existing Products/ Services
New Products/ Services
Cider, Apple Juice, Apple Jam, toffee apples to
Passers-By
A Simple Business
Existing Markets
New Markets
Existing Products/ Services
New Products/ Services
Cider or Apple Jam in the High St.
A Simple Business
Existing Markets
New Markets
Existing Products/ Services
New Products/ Services
Cider or Apple Jam in the High St.
Apples to shoppers in the High St.
Cider, Apple Juice, Apple Jam, toffee apples to
Passers-By
Bulk discountsSign at the end of
the roadFlyers to
neighboursRepeat order
serviceEtc.
Based on ‘Scaling Up’ by Verne Harnish
Make a list of up to 5 existing products or services that you could sell more of by focusing extra energy on your existing customers
Next make a list of up to 5 new markets that you could enter with your existing set of products or services
Based on ‘Scaling Up’ by Verne Harnish
Now make a list of up to 5 new products or services that you do not currently offer • State whether to
existing or new markets
• Growth (and size) matters
• Framework for identifying
opportunities
BizSmart aims to help business owners of small and medium sized businesses to create value and scale their businesses through sound practical business support by providing insight, Clarity combined with a real determination to help you succeed.
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You can read the associated blog and listen to a recording of this presentation by clicking here
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