Double your Sales - Growth Strategies for Small Business

Growth Strategies
for small business

Orange Office Los Angeles Office
growth@cpsphere.com 17215 Studebaker Rd. Suite 390
Cerritos, CA 90703
5777 W. Century Blvd. Suite 1500
Los Angeles, CA 90045
PARTNERS IN SUSTAINABLE GROWTH
www.cpSphere.com P: 1.562.860.8637 P: 1.310.645.0707

GROWING
YOUR
BUSINESS
IS
JUST
LIKE…

Cerritos, CA 90703

… LOSING WEIGHT.

Cerritos, CA 90703

The secret formula for losing weight is:

EAT HEALTHY,
EAT LESS,
AND
EXERCISE

Cerritos, CA 90703

WHAT IS THE SECRET FORMULA
FOR SMALL BUSINESS GROWTH?
Cerritos, CA 90703

The secret formula to grow your business is:

GENERATE DEMAND AND
SERVICE IT PROFITABLY
Cerritos, CA 90703

Quick Survey

What does Growth Mean to You?
 Increase in Sales / Revenue
 Increase in Market Share
 New Products
 More Employees, Equipment, Plants
 Mergers / Acquisitions
 All of the above
Cerritos, CA 90703

Real growth is:

INCREASE IN THE CASH YOU KEEP
=
INCREASE IN PROFIT
Cerritos, CA 90703

PROFIT = REVENUE – EXPENSES

Cerritos, CA 90703

REAL = REVENUE – EXPENSES
PROFIT INVESTMENT

This formula is called Return on Invested Capital (ROIC)

Cerritos, CA 90703

INCREASING PROFIT WHILE KEEPING
INVESTMENT CONSTANT IS:
THE HOLY GRAIL OF BUSINESS
Cerritos, CA 90703

SO,

LET’S START OUR QUEST FOR THE
HOLY GRAIL WITH A STORY…
Cerritos, CA 90703

This is the story of:
MIKE,
AN AMBITIOUS ENTREPRENEUR LIKE SIR RICHARD

Cerritos, CA 90703

Mike’s business is:

MIKE’S GREEN POWER INC
PLUG INTO THE POWER OF THE SUN
AND
DISCOVER THE CLEAN BENEFITS

Flash Light Battery Charger

Everlite - Compact Solar Light Everlite - Mini Solar Light

Headlamp Cell Phone Charger

Cerritos, CA 90703

ONE DAY, MIKE GETS A CALL:
“Mike, it’s Joe from cpSphere. How are you?”
“Great, Joe, great.”

Cerritos, CA 90703

Current Income Statement
Revenue 5,000,000 100%
Direct Costs 3,000,000 60%
Gross Margin 2,000,000 40%
Overhead 1,000,000 20%
Profit 1,000,000 20%

Last Year’s Profit: $800,000
Increase in Profit: 25%

So, Mike’s business does look like it’s in great shape.
But is it?
Cerritos, CA 90703

Last year’s investment : $300,000

BUT: $300,000 GENERATED ONLY
$200,000 IN INCREASED PROFIT
Cerritos, CA 90703

PROFIT CENTER ANALYSIS

Profit Center 1 Profit Center 2
Avg. Unit Price 30 20

Units Sold 60,000 60,000

Revenue 1,800,000 100% 1,200,000 100%

Direct Costs 1,350,000 75% 450,000 37.5%

Gross Margin 450,000 25% 750,000 62.5%

Overhead 300,000 16.7% 300,000 25%

Profit 150,000 8.3% 450,000 37.5%

Cerritos, CA 90703

SEEK GOOD GROWTH
&
AVOID BAD GROWTH
• Develop an effective way to model and test new products
• Identify the best products and customers
• Understand where to focus your efforts in sales, marketing, and investment

Cerritos, CA 90703

…AND EXECUTE YOUR STRATEGY, BECAUSE, ACCORDING TO FORTUNE MAGAZINE:

“ONLY 10% OF STRATEGIES ARE
EXECUTED SUCCESSFULLY.”
But Mike is different.
He gets things done.
He took his idea and really ran with it.

Cerritos, CA 90703

Now, a few months have passed, and Mike has
generated a noticeable increase in both his top line
and profit, while keeping investment constant.
But he has a problem, so he gives Joe a call:

“MY PRODUCTS AREN’T
SELLING IN HIGH END STORES!”
Cerritos, CA 90703

Basic Pricing Structure
3 Elements
Direct Cost $3
Overhead $1
Profit $1
SELLING PRICE $5

Other Pricing Considerations:
• Customers
• Distribution Channels
• Competition
• Internal Compatibility

Cerritos, CA 90703

Price is a reflection of perceived
value:

DEFINE YOUR VALUE
PROPOSITION,
BUILD BRAND IDENTITY,
AND
INCREASE THE VALUE OF
YOUR
PRODUCTS / SERVICES

Cerritos, CA 90703

A few more months have passed…

SALES ARE DOWN!

Cerritos, CA 90703

“So, Mike,” Joe asks:

“Is your sales force focused on finding out
what your company can do for its
customers?”
“ Are territories too big or too small?”
“ If it’s organized now on a geographic basis,
should your sales force be reconfigured by
industry sector instead?”

Cerritos, CA 90703

SALES FORCE ASSESSMENT TOOL

Ranking Sales Commissions
Salesperson (1 – 10) ($) ($)

Cerritos, CA 90703


Salesperson (1 – 10) ($) ($)
David 9
Steve 7
Craig 5
Jackie 4
Michael 3
Allison 2

Cerritos, CA 90703

Salesperson (1 – 10) ($) ($)
David 9 900,000
Steve 7 700,000
Craig 5 500,000
Jackie 4 200,000
Michael 3 100,000
Allison 2 50,000

Sales people with a ranking of 5 and above
can be trained to become superstars.
So you should train them!
Cerritos, CA 90703

A top notch sales team is a must for top line growth:

IMPLEMENT A SALES PROCESS
A well defined and well executed sales process will help you to create a steady revenue stream, and
therefore, reliable sales forecasts, so that you can get out of fire fighting mode, plan the future
intelligently, and operate profitably.

Cerritos, CA 90703

CREATE A STRATEGIC GROWTH BUDGET

• Send a clear signal to employees that you
are committed to top line growth
• Centralize and prioritize all growth
activities
• Measure results / return on investment

Cerritos, CA 90703

FUND THE GROWTH BUDGET
• Reduce expenses
• Shift resources from shrinking products and
markets
• Reallocate budgets
• Utilize outside financing
Cerritos, CA 90703

Jose’s Quest is Over SO, WITH JOE’S ADVICE,
MIKE FOUND
THE HOLY GRAIL.
He understood what were the most critical
growth strategies and actions:
• Create a focus
• Define a clear value proposition for customers—
and reflect it through branding and pricing
• Build a top notch sales team
• Implement a sales process
• Create a growth budget
• Avoid bad growth

And he understood what growth really means:
• Real profit (ROIC)

Cerritos, CA 90703

YOU SEE, GROWING YOUR BUSINESS
IS JUST LIKE LOSING WEIGHT.

LOSING WEIGHT GROWING YOUR BUSINESS
Select a healthy diet Find the opportunities, and focus
Begin the right exercise program Define a custom growth plan
Stick to it Execute

AND WHAT’S THE BEST WAY TO LOSE
WEIGHT?
Cerritos, CA 90703

Weight Watchers is the most successful weight loss program:
Their secret is social interaction.

SO DON’T TRY TO GROW YOUR BUSINESS ALONE:
YOU WILL HAVE A BETTER CHANCE OF
SUCCESS WORKING WITH YOUR TEAM
AND A TRUSTED ADVISOR.
Cerritos, CA 90703

WOULD YOU LIKE TO DOUBLE YOUR
SALES IN NEXT 4 MONTHS?
Sign up for:

120 Days Business Growth Program

GUARANTEED RESULTS!

FEE: $2,500 +
% of increase in sales

Call: 1.310.645.0707 or Email: growth@cpsphere.com

Cerritos, CA 90703

cpSphere has delivered an average 20% minimum bottom
line improvement for our clients.

cpSphere is the leading management consulting company working
to create, deploy and execute growth strategies for small and
Client Testimonials:
mid size businesses.

If you want quick results, combined with continuous
improvement, cpSphere is definitely your partner for success.
President.
Food & Beverage Company

I would recommend the personnel and the methodology of
cpSphere to any business owner who wants to grow quickly
and cost effectively.
CEO
Manufacturing Company

Cerritos, CA 90703

Double your Sales - Growth Strategies for Small Business

Empfohlen

Empfohlen

Weitere ähnliche Inhalte

Mehr von Kamraan

Mehr von Kamraan (7)

Kürzlich hochgeladen

Kürzlich hochgeladen (20)

Double your Sales - Growth Strategies for Small Business