Rajiv Jaiswal, business consultant at India Consults discussed- “Scaling your business”.
Every business has four building blocks –
- Setting your goal : It involves defining where you would like to go.
- Business planning : How do you get to your goal
- Create accountability : Build a team that will help you reach your goals.
- Check your team : Review your team’s work.
GOALS – what, why and how?
A goal is what helps you define what you want to achieve. It’s easier to know how your final destination so that you can figure out the best possible way to get there.
Goals need to be ‘SMART’. A smart goal has 5 characteristics:
Specific: clearly defined, readable, understandable
Measurable: You should be able to measure your point of arrival
Achievable: Must be feasible goal
Relevant: Must be emotionally relevant and meaningful
Time Bound: Must be tied to a timeline for completion
Goals add a lot of meaning and purpose. Fixing a goal makes it simpler to allocate resources. It helps create check points at every point, where we pause to evaluate ourselves better.
When and why do goals fail?
- Goals that were not specific and were never written down.
- Goals that were not supported by robust strategy and action plan
- Goals that had no emotional commitment
- Goals that were not supported by reviews or accountability structure.
“Have enough clarity in your bigger goal, so that you can sketch several small goals that can be accomplished to get to there. It pays to have all small goals be in sync with your larger goal” – Rajiv Jaiswal
Requirements for goal setting?
Goal setting may be based on either one of these two measures – Lead measures or Lag measures. ‘Lead measures’ are measures proactively taken to influence how we desire to reach our goals. Ex- inspection. ‘Lag measures’ are measures that give us a better understanding of where we have reached. Example – sales, quality approval. Having lead measures checked helps us obtain desired lag measures.
Tools to understand goals better –
Most businesses follow a cycle.
Launch -> Growth -> Maturity -> Decline
(Phase of high overheads) (When costs are recovered) (When its time to renovate)
Documenting our business in a structured worksheet (as given below) gives us a crisp idea of which market contributes significantly to our sales. We gain better understanding of our growing markets. It also becomes significantly easier to identity markets that could do with better work and better research.
|Area/Category wise sales
||Average sales per person
||Increase /decrease in sales
||What % is the increase/decrease of total sales
||What is the growth %
These figures will cumulatively help us in planning our business .
Plotting ‘What % is the increase or decrease of total sales” against “Growth rate” will help us explore market contributions to sales. We can then categorize our markets into – Concern Markets, Leader markets, Future growth markets and Wait-and-watch markets.
“Focus on what can be done to grow in your market of expertise. While it could seem simpler to explore other markets, it pays well to know how to dip your hands and pull the business out” – Rajiv Jaiswal
Walking through examples –
An example of feasible goals in a generic business model:
- 10% sales increase from existing customers
- 10% sales increase by market penetration
- 7% increase by adding institutional customers
These goals would translate into:
- Penetrating the market by adding to your existing pool of dealers.
- Deciding which new market to penetrate into by understanding which would be the best new customer base you’d like to address.
Lead measures to be worked upon would be :
- For new institutional sales: Knowing which companies to reach out to, deciding when and how.
- For market penetration: Finding new dealers. Training and motivating them to get them interested in your products.
The discussion ended with Mr. Ankit Khandelwal, Chartered Account, briefly stepping in to explain different kinds of company registrations, following which, the cohort dispersed for a networking lunch.
Each participant shared her business data with Rajiv Jaiswal, who shared his insights on how to plan better to achieve higher sales.
The next Session for CruciBOLD Delhi YFLO cohort will be held on March 6th at India Habitat Center, Delhi. This will be the concluding session for CrcuiBOLD Delhi 2017.