The mid 1980’s saw the emergence of the concept of the Marketing Mix, the 4 P’s - Product, Price, Place and Promotion. The model was further developed with the addition of the People, Process and Physical Evidence elements. These pillars form the cornerstone of many businesses’ commercial strategy.
One of the simplest ways to win new business is to sell more to people you know - a process affectionately known as juicing or squeezing the lemon1. You already have a relationship with these people, they know that they can trust you, and they value your work. So, what are your options? Geoff Gwynn, one of our Business Growth Advisors has some advice for you.
You’ve set up a business with a friend or connection, to keep things fair you split things, including the ownership of the business, 50:50. But what happens if you disagree on major decisions? Particularly if one of you decides you no longer want to be part of the business going forwards? We’ve worked with businesses in exactly this situation.
It often comes as a shock to business owners when they learn the day they legally complete the sale of their business is not the day they actually walk away. One of our experienced Business Growth Advisors, Geoff Gwynn, explains more.
The major overarching lesson is that you need professional help, and that help creates value in the transaction. You need to trust that your chosen professional help can save you money, like a good lawyer protecting your personal warranties, or growth advisor who can make you money by helping you set a price that exceeds your expectations.
One challenge we regularly come across when we work with businesses is a trepidation to sell their products and services. Non-salespeople often find the prospective daunting or just a bit uncomfortable. But if you want to grow your business, you need to be clear on what you are selling, who is going to buy from you, and how your products or services can solve their problems.
Recruiting and retaining staff is a challenge for many businesses at the moment. Candidates can be choosy about what they apply for and which role they accept. It’s particularly difficult for businesses who don’t recruit regularly.
Pricing a product is a combination of both an art and a science. It requires a balance of financial considerations and personal values. A business owner must consider how a product or service contributes to overhead and how that will drive profitability, as well as how their pricing strategy will impact their marketing and competition. Prices can be set based on cost, or those of your competitors or the value you can create in the eyes of the customer - value based pricing. Steve Bird, one of our Business Growth Advisors explains the benefits of focusing on value.
We know how to prepare and help you get your business into shape for exit. We work with some excellent Corporate Finance House partners, wealth managers, solicitors and tax advisors and, we can advise on all the various exit routes open to business owners.